One of the Best Weapons in Trading

[GreatArkansas]

I still got confused on you explanation, meaning all I need to is to set the amount in which I think I will be loss. At least if goes down rapidly I am safe for the huge loss. Is that what you're talking about? Just all I know is there many sellers I will sell then if there many buyers I
will buy coins, just simple as that.

Even not rapidly, once your analysis goes on the other side, or if you do chart, once it becomes invalidated(e.g. broke support/resistance, pattern didn't go on what you expected)
Doesn't mean there are many sellers it will go down, or vice versa with buyers, there are many fake huge sell/buy orders just to fool other traders.

[guoyu78]

What you said is totally not far from the truth, these is really one of the greatest weapon that any trader can use if he is really serious about controlling his emotion and also serious about minimizing risk in trading. It is a weapon that no newbie should ever joke with, although to me, it is more like a weapon for margin, but I think it is also useful for any form of trader, although I don’t use this tool that much because I could term my trade as something that is just very similar to holding.

I place my order and keep watching till I see a surge in the price of the cryptocurrency, that is why I don’t bother setting stop loss, but I trade only in bitcoin because even if the price goes down, I know that it will surely bounce back, if I set stop loss, I will still be the one to lose some coins.

[maydna]

Minimizing the loss while doing trading is one of the important factor to be successful trader but people regrets their loss and give up when they have the lots of opportunities to be missed on the next trades.Always watch the market like hawk and hit the most successful trade if you are lucky enough.

When they give up, they don't have any chance to recover their losses in the past. Many traders feel that because they thought that they could not get a good time to buy any coins at a low price so they cannot back to make a profit. But if they can learn more about stop-loss, especially from this thread, I think that they can know how to prevent the big losses and even they will have time to search for the profit. Stop-loss will be the best weapons for every trader to avoid the losses if the market is run without notice like today.

[JustMyFewCents]

Have you ever experienced doing trade and ended it up by #HODLING? (You bought a coin and waiting to pump, but unfortunately it dumps, and decided to wait for it until it pumps)
Have you ever experienced liquidated on Margin Trading Exchanges? (Huge red/green wick candle? )

I want to share my weapon against that situation. Meet, STOP-LOSS.
What is Stop-loss?
• Stop-loss is accepting your loss on the trade or you are minimizing your loss or cutting loss before getting rekt in ahead of time.

Most of the exchanges don't have Market Stop-loss only the Limit stop-loss as far as I experienced different exchanges.

Conclusion
Using stop-loss is not worst at all. Accepting our loss is not bad. Minimizing our loss is absolutely good than maximizing it.
There will be a good trade set-up. Not all the time are good to trade, sometimes the best trade is not to trade.

I don't really consider myself as a trader yet, other than your usual transaction transfer. And although I've somehow heard or read about this before, but definitely not as detailed as you've explained it here for us.

Thanks for the tip and for taking the time to teach the rest of us, newbies, to be more confident when trading later!

[GreatArkansas]

(....)

I don't really consider myself as a trader yet, other than your usual transaction transfer. And although I've somehow heard or read about this before, but definitely not as detailed as you've explained it here for us.

Thanks for the tip and for taking the time to teach the rest of us, newbies, to be more confident when trading later!

Welcome here! For sure, you will try soon some trading as you go along. And if you are not so busy, you can try or explore the trading world.
If you will have some spare cash or extra money soon, for sure you will think about trading in cryptocurrency and always think about what I said in the first post since I also experienced some there when I started to trade as a newbie.

[justdimin]

Lol stop loss has been a weapon for traders for years, either manually putting it in the system at the exchange or using a bot, basically everyone who is decent at trading has been using this for years now, it is a bit interesting to see that stop loss finally gets the attention it deserves because every single person, even the smallest of the investors and traders should be using stop loss nowadays, without that you are basically going into lions den without your weapons as a meat and nothing more.

However I would also suggest using it smartly and not just putting it at 1% or something, those type of changes always happens, if you want to take good advantage of it, put it on support (a bit below) so you would actually get out before the storm comes in.

[Alvi69]

After worst experiencing for the best strategy to make a trade profitable is that always buy in depth and should be must use stop loss option upto 5% and then wait till its recovering you should be a give it a sufficient time to be bounce back.

[FIFA worldcup]

I never like using stop loss, I would rather just ride out the storm instead of letting a stop hunting whale pick up my coins for cheap.  If your in any good coin it will always rebound if you are patient enough to wait it out.

I also did a mistake of not using a stop-loss during my few trades and the result is that my portfolios is too much down because of this. I would also recommend all the new and old traders to always use the stop loss because the market so much volatile and we never know if any coin may dump unexpectedly.

[DeadCoin]

Perfect technical analysis, this very useful when you are using a trading bot and you know when to stop-loss by having a right manual set on the trading bot. We all know that the crypto market is very volatile but at least we can create technical analysis like this that maybe possibly gives an accurate result. Predicting is useless if you don't have technical analysis.

[pankaj1234]

I think perfect analysis of situation is definitely best weapons in trading. Analysis means you should know their project, community,their hard working skills, their management.their team , their ico,  after done these speculation you can enter to market and try to make some profit.
But in the crypto world Cryptocurrencies are increasing every time so very difficult and very risky to trade so do analysis and buy on absolute low point.

[TheUltraElite]

Perfect technical analysis, this very useful when you are using a trading bot and you know when to stop-loss by having a right manual set on the trading bot.

Bots have built in stop loss options to be set by the user. But you can always trade without a bot and setting a stop loss, if the platform you are trading on has such an option during placement of the order.

We all know that the crypto market is very volatile but at least we can create technical analysis like this that maybe possibly gives an accurate result. Predicting is useless if you don't have technical analysis.

Technical analysis does a 50-50 thing to prediction. It does not always predict the market correctly because of several variables being into action and many news and partnerships happening between companies that makes the market move. TA is based on the assumption that market is trading as per an undeviating market psychology, which is not always true. You can buy low and sell high but you wont need TA to tell you that. TA is used more by the day traders.

[semobo]

Stop loss is must have tool to implement by short term traders and mid term and I don't think its really needed for one who trade once in a while when they can make profits.By the way that is well explained with example which will be helpful for many traders who doesn't know much about it.

[Mahanton]

Perfect technical analysis, this very useful when you are using a trading bot and you know when to stop-loss by having a right manual set on the trading bot.

Bots have built in stop loss options to be set by the user. But you can always trade without a bot and setting a stop loss, if the platform you are trading on has such an option during placement of the order.

We all know that the crypto market is very volatile but at least we can create technical analysis like this that maybe possibly gives an accurate result. Predicting is useless if you don't have technical analysis.

Technical analysis does a 50-50 thing to prediction. It does not always predict the market correctly because of several variables being into action and many news and partnerships happening between companies that makes the market move. TA is based on the assumption that market is trading as per an undeviating market psychology, which is not always true. You can buy low and sell high but you wont need TA to tell you that. TA is used more by the day traders.

I agree to this sentiment thats why i do seldom make use of lots of TA's or indicators when it comes to predicting price but somewhat i do simply make use of support and
resistance lines and dont make or use much other than that.SL are good to minimize loss but i do see this is more relevant when dealing with traditional markets but for
crypto? I would rather choose to hang on a thread for longer rather than considering on selling up on a loss.

[bitgolden]

We all know that the crypto market is very volatile but at least we can create technical analysis like this that maybe possibly gives an accurate result. Predicting is useless if you don't have technical analysis.

Technical analysis will be complete only if it is equipped with stop-loss which is all about what OP is emphasizing. Technical analysis will help anyone to predict the market directions hence I am not sure what you mean by predicting without technical analysis. You mean predicting randomly? Most people here do trade without stop-loss which makes their trade to be opened for more time period than usual. IF they opt to exit at stop-loss then they can close one trade in loss and may cover that loss in next trade.

I would rather choose to hang on a thread for longer rather than considering on selling up on a loss.

This is what most of the traders are doing because they are more confident about bouncing back of the market. I guess it will be possible only for crypto trading and for any other trading you must exit at stoploss so that you can minimize your losses and you will get another chance to recover your losses.

[TheUltraElite]

I agree to this sentiment thats why i do seldom make use of lots of TA's or indicators when it comes to predicting price

Though I would suggest you to learn about indicators more often. They are useful but not everytime. Something like a gut feeling at times and sometimes completely opposite. Knowledge on how to use them will not go in vain though.

but somewhat i do simply make use of support and resistance lines and dont make or use much other than that.

For the general hodlers that is enough IMO. You buy low and sell high. But most dont even buy low, they end up buying high and get stuck. Then they are trying desperately to get out of the market so things like waiting on technicals, getting scammed by fake telegram signal groups keep happening.

SL are good to minimize loss but i do see this is more relevant when dealing with traditional markets but for crypto? I would rather choose to hang on a thread for longer rather than considering on selling up on a loss.

Holding the coins for a better price is a right decision. But this becomes difficult for those who dont have a strong belief on bitcoin and fear what will happen to it in future.

[Latviand]

The market-stop-loss option is what I thought would happen, rendering as a result option “A” with results such as those you mention (an additional 2,56% loss from the intended target sell value).

That's why some margin trading exchanges have this market stop-loss to avoid some liquidation on massive flash dump/pump of a particular coin. And additional, as far as I know, the market-stop-loss has much higher fee compare to limit stop-loss, so they have some advantages and disadvantages.

If your in any good coin it will always rebound if you are patient enough to wait it out.

Yep, we can't really predict it. As I also experienced last few months, I have this particular coin which I bought and I decided not to put any stop-loss after buying it and look at the price now, I already lost 80% if I will sell it now, so I have no choice but to HOLD it until it will come back to my entry price or above, 4months already  .

For me, the best weapon is patience and discipline. You can't be successful in trading if you're greedy enough to have a transaction even if it is not the right time to trade. You need to have good predictions and technical analysis because it will serve as your guide and hint on when to have a proper transaction. You should not execute your strategies and technique without basis, because it will make you end up being a loser. In order to win, you need to become used to the predictions and understand how market moves. There are people who prefer to hold until the right time and they don't want their money to circulate in the market and it depends on you if you are really confident enough with your decisions.

[GreatArkansas]

For me, the best weapon is patience and discipline. You can't be successful in trading if you're greedy enough to have a transaction even if it is not the right time to trade. (...)

That is already given and always should do before we started to trade. And it's on the more emotional or mental side which we can adapt by ourselves.
Patience and discipline is an extremely important weapon but we should also practice some technical side, we need to use some of them to help our trading life better and will that will help our emotionally or mentally side.

[ReiMomo]

~snip~
Patience and discipline is an extremely important weapon but we should also practice some technical side, we need to use some of them to help our trading life better and will that will help our emotionally or mentally side.

Maybe you were right that patience and discipline are a must in trading but I don't see any reason that this makes become the best weapon. Probably for me the best weapon is "luck" and followed by "skills", once you have this since the start when you are in trading. Well, trading is for you and you may continue your journey in trading. But if you don't, stop, and find another way of earning money because trading is not for you.

[TheGreatPython]

I would rather choose to hang on a thread for longer rather than considering on selling up on a loss.

This is what most of the traders are doing because they are more confident about bouncing back of the market. I guess it will be possible only for crypto trading and for any other trading you must exit at stoploss so that you can minimize your losses and you will get another chance to recover your losses.

Yes when trading bitcoins, we can be confident about market to turn in our favor because bitcoin markets are usually highly fluctuate which will lead to escape at margin levels at least. So, for the most cases of crypto trading, I am not considering stop-loss as a weapon to safe guard our capital. Instead of that, if you exit at stop-loss and you watch market to bounce back then that will lead to big regret which again lead to not trading for the rest of the day.

Stop-lost may seem an essential when market turns unexpected like how bitcoins market did on the news of corona out break, it lost more than 35% within a day; it means if we do not exit at stop loss then we might have lost our capital more than 35%.

[rexxarofmoknathal]

The stop loss feature can be life saving. It's true, that when the market allows this can easily be used for any trader but unfortunately its limitation comes into existence once the market fluctuates in an irregular pattern and frequent basis. This is why even with stop loss I can't always guarantee profit, though at times using it does put my mind at ease