STOPLOSS? what are Advantages and disadvantages of stoploss?

[luckywomenn]

Any of you know about stoploss? To what i know, Stop Loss is a type of order to limit losses at a pre-set price. As the name implies, this order is used for the purpose of risk management, preventing the market from happening unfavorably, can still limit losses.
Stop loss are usually placed with a buy / sell order. A stop loss order is placed to limit losses at a predetermined position. Setting a 10% stop loss below the price you bought, will limit your loss by 10%. For example, we have bought gold for 1,000 and put a stop loss at 990. That is, if the market price reaches 990, the order will stop.
But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.

[palle11]

The advantages and disadvantages are not far from the ideas you already know, that it stops you from making too much loss. But personally, I would say it gives you the opportunity to retain your account so that you can try to regain what you have lost next time.

Stop loss are usually placed with a buy / sell order.

This is confusing. Stoploss order is not only made immediately you place a buy or sell. It can also be adjusted later when you have already placed the buy or sell order.

[Gloverwrt]

It's very possible that you analysis about the price was correct, but the value drops and then rises again, if your stop loss was within the drop zone, you are out of the trade, and it could rebound later.

Stop loss is very important when trading, but the hymns factor is more important, endeavour to monitor your trades and make adjustments when necessary.

The advantage of stop loss is as you said, it protects you from losses, or rather minimizes your losses.

[Thanasis]

Stop loss trading is kind of confusing and hard for many traders and even I too not tried them much times but the advantage and disadvantages are nt much in the stop loss trading which is same as the normal trading but we can limit our loss in the stop loss trading but when you make the trading into longer time frame then chance of making money is high.

[leonix007]

But I want to discover more about stoploss, its advantages and disadvantages. Can anyone tell me more about this? Thanks in advanced.

Aside from the advantages you had stated, you could also set a bounced price if you believed after the trigger, it would slightly go upward for a corrections, however more often if you had it mistaken this may result on a non triggered limits which may cause a much loss

Majority of exchanges used the Stop limit feature in order to give you a choice on a stop/limit the possible loss, however, you may also use this to open a position or take the profit trigger options

Stop loss in margin trading is too difficult to estimate, usually if its too tight it may easily hit by a certain wyck fluctuations so a loss in your side is very probable

[Iykecollins]

The only advantage that stop loss could have is when market is in a  huge bull run and one decides to FOMO and decides to be cautious in case of any huge drop, would be better to place a stop loss at a slightly lower than buy price, this can be reviewed upwards ask the Bull continues but the disadvantage is that because of the sharp volatility there could be a quick drop that may sell the stop loss and continue with the bull run then one would have been out of the trade just like btc dropped sharply to around $6180 yesterday and made a quick bounce to $6400

[randythered]

The advantage is right there in the name, it stops losses. As for disadvantages well obviously there's the potential for the market to recover shortly after hitting your stop-loss. The important thing is that you realize a stop loss isn't going to be the best thing all the time, as with anything in trading sometimes it will be the wrong decision but overtime it should minimize losses and in turn lead to maximizing profits.

[changxia]

Timely stop loss is very important, my stop loss price is usually between 15% and 20%, I think this decline is already very huge!

[manggis97]

I dont see any disadvantages of stop loss,  stop loss give many advantages for trader, when first jump in to crypto trading i did not use stop loss and finally i been loss more than 50%. Trade on the any asset like forex,  stocks,  commodities,  crypto etc we should be use stop loss to minimize the risk and to avoid big loss.  In spot or margin trading,  stop loss is should be to use so we can make profit in consistently.

[wahyu wida]

with stop loss we can set loss limit if market movement does not match analysis that has been planned. so we can buy back at next support, this is useful when we rarely see charts

[ss890]

After reading your post it makes sense that you know it already. Well, it is what it is, you just place your orders and set the settings at desired loss and in some cases you can even put on call function where you set how much profits to be taken. In that case same goes for profits as you set up the loss and once the value reach that amount then your order automatically gets executed for it. Its pretty kind of limit order but only one way functionality. As in the limit order you would specify the price on your own per coin/tokens at which the order must be executed.

[Gozie51]

As for disadvantages well obviously there's the potential for the market to recover shortly after hitting your stop-loss.

I have to add that this could be very painful, sometimes it could happen in the exact limit point where you set your stop loss and with no pips further, the market will revert back and by then you would have lost on that one. So painful I mean this. 

[haroldtee]

As for disadvantages well obviously there's the potential for the market to recover shortly after hitting your stop-loss.

I have to add that this could be very painful, sometimes it could happen in the exact limit point where you set your stop loss and with no pips further, the market will revert back and by then you would have lost on that one. So painful I mean this. 

Shit happens, it is part of trading and when they happen, you just have to readjust.

Moreover, cases like these are usually bound to happen when you really do not consider the market fluctuations hugely before entering a position, so as to know exactly how to be positioning your stop loss, to be at least able to know that no matter what, the chances of the market trying to be volatile in the start of a trend change, is always going to be there until the bull or bears as the case may be, wins the fight.

Nonetheless, stop loss is very important and the occurrence of what you mentioned is there but when considering the number of times stop loss would help save you from a huge loss, you will realize it is better than not using it at all.

[jasergut]

the main advantage is that if the trade is going against you, you can cut your losses quick, and move on.

one of the main disadvantages is the fact that many times the trade can touch your stop loss, and then move towards your take profit.

[Rohtox]

I do not use stop loss because I trade in the market there often happens pump and dump quickly in seconds so when using stoplose we can lose even though it is only pump and dump I prefer to use a price alarm because it is safer in my opinion

[perla]

I do not use stop loss because I trade in the market there often happens pump and dump quickly in seconds so when using stoplose we can lose even though it is only pump and dump I prefer to use a price alarm because it is safer in my opinion

In where you trade? it will be fun if market often to pumped and dumped. Trade in there will be good especially for day trader, maybe if you want to share where you trading in here.

[beerlover]

I dont see any disadvantages of stop loss,  stop loss give many advantages for trader, when first jump in to crypto trading i did not use stop loss and finally i been loss more than 50%. Trade on the any asset like forex,  stocks,  commodities,  crypto etc we should be use stop loss to minimize the risk and to avoid big loss.  In spot or margin trading,  stop loss is should be to use so we can make profit in consistently.

Stop loss is just a way of minimizing the risks the market holds and a lot of people who are just starting to trade, usually don't know that and since all they are just after is buying the bottom and selling the top, without any form of strategy, the importance of stop loss will be a hard thing for them to phantom.

Stop loss has a whole lot of huge advantage for those who trade the market and even for investors that have some little bit of trading knowledge as this is usually a way to know that even if you are taking a risk on the market, you understand that even with your strategy, things could go wrong, but for the fact that the reward is more than the risk, I am certainly going for it, but still keep the stop loss active in case the other side of things happen.

[jhongzjhong]

I dont see any disadvantages of stop loss,  stop loss give many advantages for trader, when first jump in to crypto trading i did not use stop loss and finally i been loss more than 50%. Trade on the any asset like forex,  stocks,  commodities,  crypto etc we should be use stop loss to minimize the risk and to avoid big loss.  In spot or margin trading,  stop loss is should be to use so we can make profit in consistently.

Stop loss is just a way of minimizing the risks the market holds and a lot of people who are just starting to trade, usually don't know that and since all they are just after is buying the bottom and selling the top, without any form of strategy, the importance of stop loss will be a hard thing for them to phantom.

Well said buddy, but here is mine. Stopping your loss or cutting on it it means just like you are accepting already your loss which means that is forever lost but if you didn't then, you need to wait until when it is recovered. The advantage of that is you can avoid of keep losing on your capital investment meanwhile, the disadvantage you can't recover at all your lost which is probably it will back if the market turn to green.

[Coin-1]

Be very careful with creating stop-loss orders. Sometimes "whales" drop a certain crypto currency in order to trigger stop-loss orders of other traders. As a result, the price of this coin falls deeper, and they immediately buy cheap coins. This is their trading tactics.

Stop-losses have advantages. As a rule, you need to create stop-loss orders after the price increases. If this coin falls again, you will gain some profit anyway.

[grizmoblust]

I think stoploss point is one of the most important thing for trading. It helps the investors cut loss or get profit. It helps the investors to not too greedy or frighten. And the most disadvantage of stoploss is the prediction. if you choose a wrong point, you can lose your money too much.