5 Stop Loss Mistakes To Avoid

[deisik]

I think stop loss is just for short term traders, especially day traders, because there is nothing to apply stop loss to when you are a long term trader, there is no loss unless you decide to sell off the holding, and this is why I prefer to just be an holder, I invest, and then hold till I see substantial profit that is satisfactory in my investment before pulling out my profit

I see your point and can't say I disagree with it

But still, even if you are a die-hard holder and go for a long ride, are you going to keep the coin of your choice in case you feel like it is going to bite the dust and fail you at the end of the day? A rational decision would be to get rid of it as soon as possible, and as I'm inclined to think, that would pretty much count as a "generic" stop-loss. It is the same force and motivation which are driving both short-term traders and long-term holders alike when they close their losing positions, i.e. to prevent loss accumulation

[1714849012]

1714849012

[Negotiation]

I think stop loss is just for short term traders, especially day traders, because there is nothing to apply stop loss to when you are a long term trader, there is no loss unless you decide to sell off the holding, and this is why I prefer to just be an holder, I invest, and then hold till I see substantial profit that is satisfactory in my investment before pulling out my profit

I see your point and can't say I disagree with it

But still, even if you are a die-hard holder and go for a long ride, are you going to keep the coin of your choice in case you feel like it is going to bite the dust and fail you at the end of the day? A rational decision would be to get rid of it as soon as possible, and as I'm inclined to think, that would pretty much count as a "generic" stop-loss. It is the same force and motivation which are driving both short-term traders and long-term holders alike when they close their losing positions, i.e. to prevent loss accumulation

Stop-loss not only short term trader I think uses for all trader, example some coin or token listed popular exchange next few days later dropdown a huge going lower level but no chance going upper level so how to do?
if was use stop-loss so left loss and take save profit.

[MonsterV]

I think stop loss is just for short term traders, especially day traders, because there is nothing to apply stop loss to when you are a long term trader, there is no loss unless you decide to sell off the holding, and this is why I prefer to just be an holder, I invest, and then hold till I see substantial profit that is satisfactory in my investment before pulling out my profit

I see your point and can't say I disagree with it

But still, even if you are a die-hard holder and go for a long ride, are you going to keep the coin of your choice in case you feel like it is going to bite the dust and fail you at the end of the day? A rational decision would be to get rid of it as soon as possible, and as I'm inclined to think, that would pretty much count as a "generic" stop-loss. It is the same force and motivation which are driving both short-term traders and long-term holders alike when they close their losing positions, i.e. to prevent loss accumulation

I agree with your opinion, long-term traders actually have to put a stop loss like a daily trader too. This is not my suggestion, but this is a good trading procedure, when a long-term trader holds the coin, they cannot assume that the coin will continue to rise, sometimes we cannot predict when the coin will become dust.

Installing a stop loss will not hurt, this is only to reduce the risk of holding a long term, it's just that we install the point at a low probability. Then install a notification on the e-mail, if it passes a stop loss. I think it is a good strategy and reduces risk.

[Best Dreams]

and stay away from bitmex if u want to use stop losses, they wont trigger becuse the system always gets overloaded so no orders trigger, just a warning guys happend to me 3 times that my stop losses did not trigger even if i had a range of 300 dollars and got liquidated.

You said it right. Stop loss is very significant in every trades but I experienced many times in bitmex that stop loss can't be triggered and just as I am confident and calm that my stop loss was triggered, I've got liquidated. Make sure your stop loss was hit before leaving your entry. Anyway, OP stated useful realizations about trading.

Stick to your guns, believe in your original trading plan, and let the market prove to you that you’re wrong by hitting your original stop loss if it moves against you.

We always do some mistakes in trading, I admit it but those mistakes makes me an experienced trader. I learned from it. Now, with the help of some technical analysis I've been using I am sticking with my own TA not with the others.

I think stop loss is just for short term traders, especially day traders, because there is nothing to apply stop loss to when you are a long term trader, there is no loss unless you decide to sell off the holding, and this is why I prefer to just be an holder, I invest, and then hold till I see substantial profit that is satisfactory in my investment before pulling out my profit.

Stop loss is a very great tool to minimize risk involved in day trading, although we have some professional traders that feels they have advance beyond stop loss and could control their trade as they like without it having any effect on them if they don’t trigger any of these trade tools available to help minimize loss or take profit, anyway that is their headache, I am strictly into long term holding business in crypto.

If you are day trader it is applicable I know stop lose reduces the risk but I prefer holding as compare to stop lose, because we know long term traders gets more profit than cutting lose one. When you see market will be good someday I think it is good to convert your strategy from cutting lose to long term holding but it is totally depending on the traders will and on his skills.

[Sri rahayu]

I think that it is under the current conditions of the cryptocurrency market that it is very profitable to use a stop loss, because the market is unstable and it is very important to minimize the risks in day trading.  Of course, every trader who is accustomed to personally control his orders can avoid using stop-loss and the risks to which he is exposed, but nevertheless you need to spend it for a long time near the computer.

As a housewife, this is what I did  and my fatal mistake is when I see prices drop continuously then I panic, by reading the op post, I will try to avoid the mistakes I have made.

[fullhdpixel]

I think long-term traders can also apply stop losses with a larger portion. in essence this tool is used to anticipate the risk of greater losses if the analysis is wrong. with large fluctuations in the market sometimes we cannot fully see the chart, so that with a stop loss it will help us

That is actually true, I think long term investors can still make use of this tool too, I have not seen much reason for a long term investor to trigger the tool till I saw your explanation, I just remembered now that I have a trade already on Binance, and knowing what the potential of bitcoin would be in the next ATH, for the record first, I am a diehard fan of long term holding, so I have already set my bitcoin investment to take profit at $28000, which is a value that I believe bitcoin will get to and above in the next bull run, why I had set my stop loss at $20k, so that I don’t make the same mistake that many of us made in the mast bull run, when we loss so much with the sudden sharp decrease in the value of bitcoin when it was on its way to bear market, so stop loss is also a useful tool for a long term investors too.

[traderethereum]

I think that it is under the current conditions of the cryptocurrency market that it is very profitable to use a stop loss, because the market is unstable and it is very important to minimize the risks in day trading.  Of course, every trader who is accustomed to personally control his orders can avoid using stop-loss and the risks to which he is exposed, but nevertheless you need to spend it for a long time near the computer.

As a housewife, this is what I did  and my fatal mistake is when I see prices drop continuously then I panic, by reading the op post, I will try to avoid the mistakes I have made.

Stop loss can help us to prevent a big loss, especially if the market cannot be predicted.
Sometimes I feel panic too like you, but then I tried to stay calm because I remember that I need to control my feeling so I can think clearly.
By making stop loss, I think we can control the order to buy or sell when the price is running out of our prediction.
But by learning more about stop loss, I think we can get more experience to prevent the losses.

[South Park]

I think stop loss is just for short term traders, especially day traders, because there is nothing to apply stop loss to when you are a long term trader, there is no loss unless you decide to sell off the holding, and this is why I prefer to just be an holder, I invest, and then hold till I see substantial profit that is satisfactory in my investment before pulling out my profit.

Stop loss is a very great tool to minimize risk involved in day trading, although we have some professional traders that feels they have advance beyond stop loss and could control their trade as they like without it having any effect on them if they don’t trigger any of these trade tools available to help minimize loss or take profit, anyway that is their headache, I am strictly into long term holding business in crypto.

Having a predefined stop loss is just a good trading and investing practice, the truth is that if you are investing in any other coin not named bitcoin then there is a chance that coin will lose all of its value or at least it could lose so much value that you will be unable to endure it, just take a look at ETH, during the all time high of ETH which was 0.1474 BTC you could only buy 6.78 ETH with 1 BTC but now you can buy 45.68 ETH with 1 BTC, don't you think it would have been a good idea for an investor to have a stop loss to avoid losing 85% of the value of his coins?

[Vispilio]

Good ideas for people who are just starting out on trading.

Another philosophical approach might to be ask yourself this question: "If you are not extremely confident that a trade will work in your favor and that you might get stopped out, are you still willing to take that trade ?"

[leonix007]

Another philosophical approach might to be ask yourself this question: "If you are not extremely confident that a trade will work in your favor and that you might get stopped out, are you still willing to take that trade ?"

Problem with this approach is that, even if you have concrete confidence, there is always a case that the market will oppose you

So good Risk management with Stop Loss will always be your shield

[ruslan4040]

In fact, all those who are just getting started at trading should not be using big amounts of money. When i started, i used only $500 for testing. And i was only making trades only worth 2% of that amount each, this is a nice practice if you are not looking to lose a bunch in a short period of time.

[beerlover]

I think this one misses the most important one out there. "Put a stop loss" . I know that should not be here and it is kind of a joke and this is for people who have stop loss and should know how to use it, however there are so many people who do not have stop loss that I think we should focus on that first.

If you have no stop loss then when bitcoin moves down a lot you are in big danger, you are literally throwing away a big chunk of your money if you do not put a stop loss under a certain number of price because there are trends and if the price breaks a certain level then you have to sell it under that level (just under it) in order to not get bitten by the big drop on the price. If you do not do that then none of this matters to begin with, these are important only after you learn to put a stop loss.

[omonuyak]

I think that it is under the current conditions of the cryptocurrency market that it is very profitable to use a stop loss, because the market is unstable and it is very important to minimize the risks in day trading.  Of course, every trader who is accustomed to personally control his orders can avoid using stop-loss and the risks to which he is exposed, but nevertheless you need to spend it for a long time near the computer.

setting of stop-loss order has helped me several time and even the day before yesterday when I set stop loss before going to church. The dump of bitcoin that cause loses of around $800 has my order close around $10,100. Exposing your capital to high risk is one of the bad ways to invest in cryptocurrency. There is no way we can be around our computer 24 hours and that means the safe heaven we have is to set stop loss.

[Janation]

This is true. most of us have mistakes when it comes in cutting cut loss

We should know that we can't avoid when it comes in trading because nobody can predict perfectly potential coins to get earn in trading.
But the OP article can help it to minimize the loses of the traders and then I believe mistakes is the good guide of every traders how it can learn well become a great trader.

Some of my mentors already told me that.

I don't need to be a perfectionist since if I will be getting anything perfectly, I will never learn from the mistakes I will be doing in the future. Mistakes are inevitable, especially in these cases that we are dealing with volatile cryptocurrencies.

[carter34]

Never moving your stop... Difficult brother.

This is one difficult thing not to do when you see your target about to be taking out. Most times, we are tempted to adjust and this is usually and exactly the case for traders , especially newbies. It takes a very strong emotional control not to do this.

[Moiyah]

A very informative post. I once do this before,

3.Moving your Stop to Break Even/Marginal Profit ASAP

And that was really my mistake because I hastily changed and adjust my stop loss since I have negative profits already. And when I was expecting it to finally go up, oppositte thing happens. Lol. Anyway, this post will give newbies and even members like me to be enlightenedand to guide us what we shouldn't do in incorporating stop loss in our trades.