3 myths about crypto trading tools

[nelson4lov]

@OP, You did a great job at demystifying those myths. They're some of the most talked about trading myths especially the one about stop loss.  In my opinion, stop loss should ultimately depend on the trader and how he/she likes to trade. However, if the user is new to trading, it is highly recommended since it'll save them while they're to get their career up and running.

As for TA + FA in crypto, Its a good combo especially in situations that where both of them compliments the other.

[MCobian]

Without using the stop-loss feature when trading, it can jeopardize the capital we have, because the capital we have can run out if the coin
price drops. With the stop-loss feature, you can minimize losses, therefore it is mandatory to use the stop-loss feature when trading.

For technical analysis and fundamental analysis, you can use it to determine the buy / sell price, so if you want to be successful when trading,
at a minimum must be able to master technical analysis and fundamental analysis. Without technical analysis and fundamental analysis we will
find it difficult to predict price movements in the market.

The take profit set up is similar to the use of the stop-loss feature, I agree that the use of the take profit set up can be used to ensure that you
don't lose the opportunity to get profit when the price goes up. Because if you do it manually, sometimes you can failed taking profit, because
the price drops suddenly. Usually pump coins are never long, so it takes a take profit set up so that our coins are sold at the target we want.

[noorman0]

I will speak as a day trader (not leverage, BO or other brokerage services)
Trading periods and strategies are flexible as I have a lot of time in front of the computer and strategy changes can occur at any time depending on price movements. There are times when I can't decide where the price will go next due to complicated charts, snd the Stop Loss configuration is very important to minimize my risk. I usually reduce my risk level gradually by increasing the SL value as the price goes up.

[jostorres]

I do not agree that this stop-loss thing is a myth. Because, I'm not making use of stop-loss for my bitcoin trading still I'm able to make profits. Probably if I make use of stop-loss then the waiting time for my trading might have been reduced significantly but if you're patience enough then you can simply go for skipping stop-loss things.

To make use of stop-loss in your trading you must need to have accurate signals. When you are not good with your technical analysis part then you can simply go for long-term trading which never needs any stop-loss given that you are trading only bitcoins.

Not needing stop-loss configuration cannot be a myth as it is purely depending on your trading strategy.

[bitgolden]

Finding out there is a level system in the stop loss with some of the trading bots I have used was the moment I realized how awesome things could get. I have not only sold but also bought coins thanks to gradual price decreases. What you do is if the price goes down 5% you sell some of it, when it drops 10% you sell a big chunk and when it reaches 20% you end up selling a whole lot of it, only when it reaches around 30% level you start buying back up and as long as it keeps going down you keep buying with the money you made from selling.

What this allows you to have is more coins for the same amount of money and maybe you lose a bit during the way but you could potentially make a lot more recovering from that as well. Which is why I really care that people should put importance on stop loss.

[AakZaki]

Stop loss will save your funds and of course when the market price has decreased very significantly. Stop losses that have been set about the desired lower price limit are certainly very useful. This kind of tool may be ignored by some traders and is not suitable for day traders. every tool provided certainly has a good purpose and is useful if used appropriately.

The Take profit tool is also the same as Stop Loss, because it will help traders to take profit automatically at a predetermined price. This will make trading semi-automatic and more controllable when busy or don't have time to monitor the market.

[gwdf1]

Without using the stop-loss feature when trading, it can jeopardize the capital we have, because the capital we have can run out if the coin
price drops. With the stop-loss feature, you can minimize losses, therefore it is mandatory to use the stop-loss feature when trading.

For technical analysis and fundamental analysis, you can use it to determine the buy / sell price, so if you want to be successful when trading,
at a minimum must be able to master technical analysis and fundamental analysis. Without technical analysis and fundamental analysis we will
find it difficult to predict price movements in the market.

The take profit set up is similar to the use of the stop-loss feature, I agree that the use of the take profit set up can be used to ensure that you
don't lose the opportunity to get profit when the price goes up. Because if you do it manually, sometimes you can failed taking profit, because
the price drops suddenly. Usually pump coins are never long, so it takes a take profit set up so that our coins are sold at the target we want.

Stop-losses must be used. Otherwise, people will look like newbies in gambling, people that think that if they start doing something with enthusiasm, and without caution, they would succeed and make tons of money. This way is the wrong one.

[24Kt]

Stop loss will save your funds and of course when the market price has decreased very significantly. Stop losses that have been set about the desired lower price limit are certainly very useful. This kind of tool may be ignored by some traders and is not suitable for day traders. every tool provided certainly has a good purpose and is useful if used appropriately.

The Take profit tool is also the same as Stop Loss, because it will help traders to take profit automatically at a predetermined price. This will make trading semi-automatic and more controllable when busy or don't have time to monitor the market.

Those tools are actually helpful if used appropriately. For some, it is useless but for some traders, those tools will save their day. It depends on what situation they are currently on, and if they know how they can employ those tools to their advantage, they will reap profits from trading.

[NeilLostBitCoin]

These things are useful, it can help you in your trading. But day trader should not use stop loss since they can monitor their trades without using it, stop loss is highly recommended if you are going to make it in a long term investment wherein you will let your asset in your  exchange wallet, and if sudden change will be made, it will not affect you so much.

[DevilSlayer]

Stop loss is useless for day traders because they can handle the profit/loss ratio by staring at the monitor and checking the hourly price candles on charts. For long-term traders, the situation is a bit different because having a stop loss will save the trades from the unplanned losses. Scalping and trading on small time-frames don't have the high-risk factors compared to big movements on daily charts.

I do not agree to what you just said because for me stop loss is important, I'm a intra day traders where I usually scalp and make gains in just minutes or hours. Stop loss for me is part of my system and it is really advisable to use it. I never enter a trade without using a stop loss because it is part of risk management and every newbies who want to become a better trader should master it. I also do not agree to you when you said that small time frames are not risky, for me it is more risky than daily or weekly time frames because in daily and in weekly time frames the signals and the conviction that you can have is real and the data is really legit unlike in slow time frames there are a lot of invalidation and false signals.

For those who avoid losing huge amount of money, try to focus on managing your risks in trading by having and mastering the art of cutting losses. I think a lot of traders do not use it because they think that it is just a waste of time, for me it is not and we should really give care on it.

Let's compare the same trades for both swing and day traders. The 10 pip is a profit for day traders while the long-term trader looks for more than 200 pips in each trade. The R:R ratio is usually equal on day trading strategies because the idea is to take whatever the market flow gives back. With the stop loss, 10 pips are nothing and it will not take a long time to hit the stop loss. If the trades are stopped out frequently how the day trader is supposed to make money?

I will never take a trade with equal risk and reward ratio. A worth it trade for me is above 2 or 3 risk and reward ratio. Why would I enter a trade if the RR is equal to each other. When it comes to taking profit, I do not agree that 10 pip is the required sell. My taking profit is depends on the market structure and market movement. I usually do swing trading so my cut loss is just below support level and my target profit is usually the resistance area. Cut loss are important to prevent huge losses, a day trader can make money if his/her strategies have high winning rate probability. I will give back the question. What if a day trader do not have stop loss? of course his/her capital will easily burn.

[Hyper88]

Who is Mickael Mosse?

[Wexnident]

A stop-loss configuration and Take-Profit set up is basically dependent on what type of trader they are. They aren't necessary per se, but you can still use them to aid you depending on your circumstances. The Fundamental and Technical analysis fight on the other hand, I agree with. Any type of information is pretty important, especially if you can assume various things from it, even if it was false. Of course, trash information exists, but well that's part of every analysis tbh, to filtering useful and nonuseful ones. , but well that's part of every analysis tbh, to filtering useful and nonuseful ones.

Who is Mickael Mosse?

He seems to be something like a crypto enthusiast/advisor? I looked it up a bit and found his medium (Probably, since it's mostly crypto stuff). Honestly, just google his name and you can look up a bit of info about him.
https://mickaelmosse.medium.com/

[Boov]

Stop loss will save your funds and of course when the market price has decreased very significantly. Stop losses that have been set about the desired lower price limit are certainly very useful. This kind of tool may be ignored by some traders and is not suitable for day traders. every tool provided certainly has a good purpose and is useful if used appropriately.

The Take profit tool is also the same as Stop Loss, because it will help traders to take profit automatically at a predetermined price. This will make trading semi-automatic and more controllable when busy or don't have time to monitor the market.

Those tools are actually helpful if used appropriately. For some, it is useless but for some traders, those tools will save their day. It depends on what situation they are currently on, and if they know how they can employ those tools to their advantage, they will reap profits from trading.

Precisely, this stated tools above are just a reminder to all of us of which tools were we can generate income most is will be used appropriately. These are all essentials in our trading but do we actually used it? Personally speaking i only did technical analysis and fundamental analysis when it comes in my trading strategies. For me from this technical tools that i have been used frequently i can manage my trading lose wisely than before.

[slaman29]

@OP, You did a great job at demystifying those myths. They're some of the most talked about trading myths especially the one about stop loss.  In my opinion, stop loss should ultimately depend on the trader and how he/she likes to trade. However, if the user is new to trading, it is highly recommended since it'll save them while they're to get their career up and running.

As for TA + FA in crypto, Its a good combo especially in situations that where both of them compliments the other.

I think it does need to be said though, that a stop loss is a requirement for every trade. Yes, where the stop is put is determined by your strategy, risk appetite and timeframe, but no trader should ever set a trade without a stop loss. That's just madness, unless you're hodling for years and are putting in cash you know you don't mind losing (but that's not trading).

[beerlover]

Not gonna lie, everyone could call themselves a "crypto currency consultant" or whatever crypto tag you want to have, doesn't mean you are going to be credible or even respected, look at linkedin, there are tons of unemployed people who call themselves "blockchain expert" or "crypto investor" and stuff like that. At the end of the day, I would say the best way to approach these kind of people to check what they wrote and see if they know what they are talking about and how valuable what they bring to the table.

Looking at this one, he knows what he is talking about and not talking about something wrong, that is a good sign, but it is also nothing too shocking or things we don't know so he is not awesome neither, I would give him 7/10 for this topic alone, didn't check his medium.

[CryptocurencyKing]

The stop loss and take profit configuration are tools that surely helps a swing trader to stay in the market without ensuring more losses than he or she the trader can handle. How cool can a tool be if it does this already!
You can imagine not having to watch a trade and it suddenly changes trend direction and goes very far against you, imagine the damage it would cause to your account. These are the little things that makes traders go crazy when not in place. Without stop loss, you'll find yourself focused on your screen and burning lots of data but stop loss guides against uncomfortable losses and take profits checkmates greed when placed properly and calculatively.