How to manage your stop loss for good trading result.

[Tigboom]

One of the powerful trading tools is stop loss. A lot of trader don't use it or don't use it effectively. Stop loss is important in so many ways, by helping you reduce your capital loss per trade whether you are on it or away. Once the stop loss is set, if the trade goes against you some portion of the trading capital will be lost depending on how big or large the stop loss is.

However, stop loss is also advantegous when your trade is in profit. You do this by adjusting your stop as the trades moves in your predicted direction so that part of your profit will be what you will risk as your stop loss and not your capital. Many people do not understand this and lots of people make so many mistakes about the stop loss usage by either moving their stop loss too fast or keep it at the initial point.

This is a Trade management tips and it plays a huge role in your trading results.

[jrrsparkles]

Stop loss is nit really useful for day traders, because they actively keep trading their funds so either they have to pick big margin while setting the stopp loss or just don't use at all but the results are going to be same for both. For mid term traders it is more useful and must have feature to save themselves fron huge capital losses.

[fuer44]

it will be a difficult thing when we are trading and the coins that we hold, the price continues to fall, checked for the next 30 minutes or 1 hour, still red. My advice is to hold on first, don't be in a hurry. even if you can, hold on to days or even months if it still shows a red graph. things like that are important because we are trading not for speed, but accuracy to get profit.

[cryptoaddictchie]

Stop loss is nit really useful for day traders, because they actively keep trading their funds so either they have to pick big margin while setting the stopp loss or just don't use at all but the results are going to be same for both.

Are you serious? OP explained it very well and I did agree. Why you consider day traders wouldnt take advantage of the stop loss. Their trading time frame is way shorter so definitely this will help. Also for a busy person who can be quite conservative this stop loss option is a big help for him to reduce loss and limit the profits. Adjustung stop loss favor anything that isnt much volatile and even volatile. Of course no one can anticipate the movement but surely a stop loss is big advantage for evergone. Thats why everybody recommending to use it when doing trading.

[bartolo]

The best stop loss strategy is to keep your money in your pocket instead of gamble it and throw it away in a high risk market where you will end up losing it all, maybe not today, neither tomorrow, but definitively someday.

[the_thing]

For short-term trades, SL is an extremely useful tool/feature. I usually have different criteria for the stop loss for a short-term trade I keep SL at 5-8% for mid-term trades 10-15% but, for long-term trade, I usually don't keep any SL.

Crypto market is so volatile sometimes that sometime SLs do not work in our favor. Happened to me a lot like SL got triggered but, later market quickly recovered lol.

[slackovic]

The best stop loss strategy is to keep your money in your pocket instead of gamble it and throw it away in a high risk market where you will end up losing it all, maybe not today, neither tomorrow, but definitively someday.

You won't lose your money if you trade and take profits. For example, if you invest $100 and your trade goes up 40%, take back your investment and trade only with the profit you made. That way you won't lose anything if the market turns around and you get liquidated.

As for stop loss, it's a useful tool if you know how to use it. And by that I mean that a user have to know how to "read" the market so he knows where to put a stop loss. For example, if you go long on BTC and support is at $10750, you don't put stop loss above that price. You put it below that price. That way stop loss will protect you if resistance is broken and the price goes down.

[cryptomaniac_xxx]

We have a lot of discussion about stop loss already,

[1] Trading Lesson: Stop loss Strategies
[2] 5 Stop Loss Mistakes To Avoid
[3] Help with Stop Loss Strategy
[4] [GUIDE]: How To Setup Stop-Loss order and other types of orders

So I guess you can get and comb that topic in the past and I'm sure that we can learn a thing or two.

[qomariah95]

That's really important, not just stop loss but stop profit. So that if we use this feature, then we don't need to be afraid of big losses, of course. we can adjust the losses to what we want. Because sometimes the market can be a massive dump, and it is impossible for us to always actively monitor the market. that's why stop loss is so important.

[samcrypto]

Trading without stop loss is gambling, I see this one as an important strategy every time I trade and even if it hurts to sell your coin/token at a loss, you must stick to the plan or you’ll lose more.

There’s always a win and lose in trading, no matter how good you are there are times that our cut loss price will be hit and its up to us whether to follow it or take more risk hoping that it can bounce back again, this is the start of a losing trade for those who took the risk, be responsible on your actions.

[Samayuki]

Stop losses are only available when using auto trading softwares or trading bots, I don't see this features available on centralized exchanges, maybe I'm not looking enough? And if I can remember correctly there are many trading bots that doesn't work right, anyways thanks for the information OP I will definitely look again

[Valzador]

People already understand the stop losing feature, but what many people still don't understand is a good stop losing calculation because if you are too close to the starting point, then you can lose the chance that the price could go up, but vice versa when you set up too many mistakes far from the initial point then you will lose.

[maydna]

Stop loss will work if the price moves unpredictable, and we are hard to analyze the moves. Using the stop loss, we can prevent the drop in the price in the next minutes. You can avoid the big loss if the dump comes at the market so that you can save your money from the drop. It is not difficult to apply that feature because you can only set the price at a low price if the price is unpredictable and let the price move. If the price is still going down and touch your order, that will automatically fill your order to save your money.

Stop losses are only available when using auto trading softwares or trading bots, I don't see this features available on centralized exchanges, maybe I'm not looking enough? And if I can remember correctly there are many trading bots that doesn't work right, anyways thanks for the information OP I will definitely look again

Binance uses that feature, and I think bittrex and poloniex also use that. You can check on the exchanges that I mention, but perhaps, the name of that feature will not be the same in each exchange.

[rat03gopoh]

Stop losses are only available when using auto trading softwares or trading bots, I don't see this features available on centralized exchanges, maybe I'm not looking enough?

"Stop loss" is the name of the method, the opposite of "take profit". If you look for buttons with these name on any a centralized exchange you won't find it, as both are the methods that must be applied to the "Stop Limit" (available on most exchange).

[Wenbing]

One of the powerful trading tools is stop loss. A lot of trader don't use it or don't use it effectively. Stop loss is important in so many ways, by helping you reduce your capital loss per trade whether you are on it or away. Once the stop loss is set, if the trade goes against you some portion of the trading capital will be lost depending on how big or large the stop loss is.

However, stop loss is also advantegous when your trade is in profit. You do this by adjusting your stop as the trades moves in your predicted direction so that part of your profit will be what you will risk as your stop loss and not your capital. Many people do not understand this and lots of people make so many mistakes about the stop loss usage by either moving their stop loss too fast or keep it at the initial point.

This is a Trade management tips and it plays a huge role in your trading results.

let's say i want to be trading for two hours per day. How do i apply stop watch. let me give a background explanation. In the two hours, i will be very active, as i will be watching the movement of the charts and candlesticks. So, how do i make use of stop loss in this case?

[cryptonx]

Great tips my friend
And People that don't use stop loss in their trade is not ready to lose, they only think about profit
But as we know predictions will not always right, thats why we need stop loss to minimize the risk on our trading activity

[Silberman]

One of the powerful trading tools is stop loss. A lot of trader don't use it or don't use it effectively. Stop loss is important in so many ways, by helping you reduce your capital loss per trade whether you are on it or away. Once the stop loss is set, if the trade goes against you some portion of the trading capital will be lost depending on how big or large the stop loss is.

However, stop loss is also advantegous when your trade is in profit. You do this by adjusting your stop as the trades moves in your predicted direction so that part of your profit will be what you will risk as your stop loss and not your capital. Many people do not understand this and lots of people make so many mistakes about the stop loss usage by either moving their stop loss too fast or keep it at the initial point.

This is a Trade management tips and it plays a huge role in your trading results.

People concentrate so much on the profits they want to gain on each trade that they forget one simple phrase that resumes why your stop loss is critical and that is ‘a penny saved is a penny gained’ basically if you can set up your stop loss so it protects an important part of your capital that should still be considered a win even when you lost money, there are so many traders that trade without a stop loss and believe me sooner or later this market will destroy them and this is even more true if they use leverage, so even when you lose a trade if the market keeps going down significantly you should consider yourself a winner since you still predicted the new direction the market will take and avoided a catastrophe.

[Kasabus]

I think stop loss is very important when you are trading, because it allows you to set your trade in such a way that when your loss gets to a particular amount that you dont want to lose beyond, the trade automatically closes itself. It is advisable to use good risk management when setting your stop lose. you normally shouldn't risk more than 2 - 4% of your trading account.

Not only in trading but even in all gambling activities, setting stop loss is very advantage so we can avoid maximal losses in the end. Even when we are in the peak of making profits, setting stop loss is still advisable too because not only we should limit our losses but also in making profits too since we cannot anticipate what will happen the next time around.

[b1boy]

Individuals as of now comprehend the quit losing the main feature , however what numerous individuals actually don't comprehend is a decent quit losing estimation since, in such a case that you are excessively near the beginning stage, at that point you can lose the opportunity that the cost could go up, yet the other way around when you set up such a large number of mix-ups a long way from the underlying point then you will lose

[jossiel]

The best stop loss strategy is to keep your money in your pocket instead of gamble it and throw it away in a high risk market where you will end up losing it all, maybe not today, neither tomorrow, but definitively someday.

You don't understand trading if that's what you're thinking. But you're free to choose not to risk and trade it. The essential of trading is to make a profit and get experience in the market. If you have no idea what trading is and you just want to keep in your pocket, it's also ok.

The market has always been in high-risk situations and it will not change because it has been volatile even before.