Stop Loss Trading

[ricseb]

Hey everyone.  Do any of you professional traders out there have advice on the best situations to use stop-loss in a trade?  It would be much appreciated.

ricseb

[1715220782]

1715220782

[P2Pfinder]

You must use Stop loss for each trade.

Hey everyone.  Do any of you professional traders out there have advice on the best situations to use stop-loss in a trade?  It would be much appreciated.

ricseb

[darkywis]

You must use Stop loss for each trade.

Hey everyone.  Do any of you professional traders out there have advice on the best situations to use stop-loss in a trade?  It would be much appreciated.

ricseb

Indeed, I put a stop loss of 10%-20% on every trade I encountered because when bitcoin pumps hard all the altcoins will surely dump and takes time to recover or or even not. Its better to put some stop loss than to wait forever to pump back the coin you bought.

[bamb]

Stop loss can be extremely valuable in a swing market situation! The perfect example is the bitcoin recent price action. In less than 24hrs, bitcoin moved  downward in price from $20k t $12k if you are not trading at that time, you may find your portfolio value halved when you resume trading!

[BitProNews]

easy make two orders for each coin you wanna trade; one to sell in high price and other to buy in low price so you are winner in both cases of dump or pump. This is my strategy for my trades but yo should choose a coin with a high volume trade. You can try it with multiple coins and you will easly see the difference beside all other strategies.

[Hamphser]

Stop loss can be extremely valuable in a swing market situation! The perfect example is the bitcoin recent price action. In less than 24hrs, bitcoin moved  downward in price from $20k t $12k if you are not trading at that time, you may find your portfolio value halved when you resume trading!

It would really be a disaster when you saw up your portfolio have down almost 50%. I agree on what most people said on here about stop loss which is always advisable specially if you are kind of a trader which isn't really actively seeing price actions or on charts then you would need this because it can really prevent bigger loses when market goes into opposite way. The thing I done together with my stop loss is setting out a buy order this 2 things are always on tandem when I'm doing trading.

[Low Sigma]

Hey everyone.  Do any of you professional traders out there have advice on the best situations to use stop-loss in a trade?  It would be much appreciated.

ricseb

It is a very broad question. Calculate the daily historical volatility, multiply it by a constant and put your stop loss according to that.

But, extremely important: make sure your stop loss is actually a LIMIT ORDER and NOT a market order!
If the SL is actually a market order and a flash crash is happening, it could be possible to find yourself into a liquidity void and get filled at an extremely bad price, like this:
https://news.bitcoin.com/coinbase-under-investigation-for-ethereum-flash-crash/

Basically this is the important info: "According to Bloomberg, Ethereum dropped from trading at $317.81, down to 10 cents in a split second. However, its recovery was also swift. It regained a $300 price point in mere seconds. "

So, if you had a SL of type Market order @ $300 but no liquidity, a real liquidation price of $0.1 was possible, imagine that. Selling at $0.1 instead of $300.

Of course there is the risk that your SL Limit order will not filled and get through and that's why is important to expand your trading tool box with some automated execution algorithms.

[pawanjain]

Hey everyone.  Do any of you professional traders out there have advice on the best situations to use stop-loss in a trade?  It would be much appreciated.

ricseb

Would like to answer your question as technical analysis is one of my favourite topics which I love to discuss on this forum. So before placing stop loss in a trade first, you must know what is a stop loss and where it should be placed and what are the different types of stop losses which trader uses based on their necessity.

Stop loss is a point or a place where the trader's view about a particular trading product for time period gets Negated. Stop loss are three types
Confluence stop loss, Volatility stop loss, Time based stop loss. If your stop loss is based on particular swing points, support or resistance then it is called Confluence stop loss. If your stop is based on Volatility of trading products and if you are using indicators like Bollinger bands, ATR then it is called Volatility Stops. And if you are using a particular time period for stop loss no matter how price behaves then it is called Time Stops and it is mostly used in the Sideways market.

[Raist]

Hey everyone.  Do any of you professional traders out there have advice on the best situations to use stop-loss in a trade?  It would be much appreciated.

ricseb

Depends. Let us say you have $100 capital and you are trading on the market. Several unsuccessful bets with stop losses will just eat your capital. If you are coming with small money it can be beneficial to wait until your chosen asset return to high. Here comes the riddle - how can you be sure, how much time you will wait etc.? Stop losses are very useful when your have big well spread capital and you are working on bulls market. In traditional stock market during bear markets (like today on alts) traders putting very tight stop losses, but here with mad volatility... it is not so easy.  

P.S. Cryptocurrency market have smoked technical analysis. Some suspect Fibonacci personally.

[Ctn]

Hey everyone.  Do any of you professional traders out there have advice on the best situations to use stop-loss in a trade?  It would be much appreciated.

ricseb

For me stop-loss and limits trade works best when there is coin which is very very unstable. For example, the coin like NEO or XEM. They flctuate like very crazy in short time and you don't have chance to analyse the market properly. In this situation you can preset the coin stop loss details and speculate in advance what could be the winning position. I think this is the way one should use this feature of exchanger because it worked for me many times. We can also use it at a time when we just want to grab little profits and these could be as low as 1-2% on daily basis. Again the choice of coin is important too. :-)

[Sukut]

Each and every situation.

[e19293001]

You won't always gain. So stop lose is very useful. Usually is 10% to 20% but I use 15%.

[miyaka26]

Each and every situation.

This is true you need to do it every single trade from all of your target coins to gamble in trading, yes it is nearly in the gambling state as you are placing your bets with your speculations and information about the coins perspective and happenings throughout the market, 15 - 20% is enough as some of the coins will have a normal dumps of 10% if that is increasing up to 50% that would be a questionable one, but its up to your strategy that is my stop loss percentage opinion.

[110910ktx]

Hey everyone.  Do any of you professional traders out there have advice on the best situations to use stop-loss in a trade?  It would be much appreciated.

ricseb

I think this is a very new market and extremely risky but it also gives us a lot of profits. To gain profits and minimize losses, you need to have deep knowledge and experience. You must always believe in yourself, always be psychologically calm before the wind waves, find the correct information you will capture the opportunity.
Good luck

[wuvdoll]

Each and every situation.

This is true you need to do it every single trade from all of your target coins to gamble in trading, yes it is nearly in the gambling state as you are placing your bets with your speculations and information about the coins perspective and happenings throughout the market, 15 - 20% is enough as some of the coins will have a normal dumps of 10% if that is increasing up to 50% that would be a questionable one, but its up to your strategy that is my stop loss percentage opinion.

Yes, stop loss is nothing but cutting our losses earlier and at the trend changing point. A stop should be derived based on a technical analysis as random stop losses may get triggered in usual market fluctuations itself. When a stop loss is set at trend changing point then we cannot do anything about the losses except accepting those losses.

In my experiences, stop losses are mandatory in order to prevent losing all the capital in one wrong trading. Because, no trader will be able to predict market movements accurately then we should be ready to accept losses often. But those losses should be in a calculated amount.

[Mahanton]

Each and every situation.

This is true you need to do it every single trade from all of your target coins to gamble in trading, yes it is nearly in the gambling state as you are placing your bets with your speculations and information about the coins perspective and happenings throughout the market, 15 - 20% is enough as some of the coins will have a normal dumps of 10% if that is increasing up to 50% that would be a questionable one, but its up to your strategy that is my stop loss percentage opinion.

Yes, stop loss is nothing but cutting our losses earlier and at the trend changing point. A stop should be derived based on a technical analysis as random stop losses may get triggered in usual market fluctuations itself. When a stop loss is set at trend changing point then we cannot do anything about the losses except accepting those losses.

In my experiences, stop losses are mandatory in order to prevent losing all the capital in one wrong trading. Because, no trader will be able to predict market movements accurately then we should be ready to accept losses often. But those losses should be in a calculated amount.

If those stop loss been triggered then recovery of those lose will be entirely depending on the next step you would made. Knowledge and skills would really matter since not all the times crypto market would follow technical analysis or on the indications been used to rely such movement. We cant do nothing but to accept those loss. 10% is too much for me on having that risked amount.

[metribitcoin]

Stop loss is very important in trading because that feature will be reduce the loss and to minimize the risk. And percentase of stop loss should be less than take profit, for example stop loss 20% and take profit 35%. Stop loss very important in crypto trading because fluktuasion of crypto so high.

[Paypex]

Hey everyone.  Do any of you professional traders out there have advice on the best situations to use stop-loss in a trade?  It would be much appreciated.

ricseb

I never use Stop Loss in trading. Better to wait for favorable situation & keep patience. Stop Loss can curtail your loss but ultimately you get loss. Eating too much may not be good. Pick right stuff @ right time & wait..

[Viscore]

Hey everyone.  Do any of you professional traders out there have advice on the best situations to use stop-loss in a trade?  It would be much appreciated.

ricseb

I usually put stop loss if I am just doing it for short term trade, also when the market is bullish I would gamble on coins
that loves to pump but since we never know if it will continue to go up, we should set a stop loss so we will not loss all our money in the event it will dump.
Those coins that I have less trust, I normally put a stop loss, good thing my exchanges has this feature.

[@Mhaiang]

Then being smart traders is a way to stop loss in the trading, you should select the best altcoin to trade with and then watch its movement in coin market cap.