Stop Loss influence in massive dump

[jaberwock]

I had a few stop loss order filled todays dump happened a few hours ago, sadly that's the point from where coin moved up.
I just have realized that stop loss order have a significant influence on massive price decrease.
If a crypto is currently trading at $2, and someone has a stop price of $1.8, selling at $1.79. See, when the price hit $1.80, you are forcing the price to go lower. And same happens in the stop market option too. As you are selling at market best price.
What's your opinion? If there are few stop loss order on certain coins, how does it influence the massive dump? Please share your thoughts.

You do not have to do anything, stop loss is stop loss and you would be fine. I can't believe the people that do not use it, it is one of the best things that could be used, it would allow you to get out of a big dump and you would either buy again from lower, or just stay out if you want to.

I used to have a stop loss that was closer to whatever current price was, but I have made good enough profit that bitcoin could be 20k and I would be still in profit so I have changed my stop loss to 20k, so now it would be quite difficult for me to lose money and that is why I am not "using" it per se, but it is still there. If am using it such a low amount and unlikely situation, everyone should be using it, you have to have bitcoin for free to not care about where it will go down or will go up, if you didn't get it for free it wouldn't really matter.

[1715650194]

1715650194

[leea-1334]

I used to have a stop loss that was closer to whatever current price was, but I have made good enough profit that bitcoin could be 20k and I would be still in profit so I have changed my stop loss to 20k, so now it would be quite difficult for me to lose money and that is why I am not "using" it per se, but it is still there. If am using it such a low amount and unlikely situation, everyone should be using it, you have to have bitcoin for free to not care about where it will go down or will go up, if you didn't get it for free it wouldn't really matter.

That does seem like a really good way to put it for a holder, but I would still adjust the stop loss to below 20k because it is very possible we will go down below that like every past ATH, where the old ATH does become the floor but not before being broken several times, which 20k has not yet,,,

Do you have a take profit limit as well?

[XZERO1]

I just have realized that stop loss order have a significant influence on massive price decrease.

Well, that is true and that is one of the reasons behind those red wicks down that you often see on trading pairs, that and someone selling in large are responsible for huge decrease in price whether it's just temporary or it's going to continue bringing the price down.

Market makers often even count for stop-losses when they're going to decide when and how much the price should go down or even up, since many people these days use bots for trading which automatically places stop-orders when picks up a trade, it happens often that market makers push the price down just merely to make those bots trigger to sell so that they buy in those low ranges with their open orders.

[Golftech]

I just have realized that stop loss order have a significant influence on massive price decrease.

Well, that is true and that is one of the reasons behind those red wicks down that you often see on trading pairs, that and someone selling in large are responsible for huge decrease in price whether it's just temporary or it's going to continue bringing the price down.

Market makers often even count for stop-losses when they're going to decide when and how much the price should go down or even up, since many people these days use bots for trading which automatically places stop-orders when picks up a trade, it happens often that market makers push the price down just merely to make those bots trigger to sell so that they buy in those low ranges with their open orders.

Reality happened, those manipulators bring the value down placing those traders who uses bot to lose their money,  a lots of

traders suffered from this kind of actions but it's really tough to predict how dip the price will go down as not even a good signal

indicators can accurately detect the actual value when the market are bot hyping and falling, most of the time, traders are being

forced to setup stop and loss only to find out that the bounce will happen  after triggering your position.

[ScamViruS]

Stop lose should be set at a price that is a little above your capital but not up to you previous sell price, in that way your capital is safe and you end up with a minimal risk of losing your entire gain, stop lose can be set a little below the resistance level of the coin you are trading in so in the situation where the market is dumped drastically you still have your funds to fall back on and buy from the deep.

Most new traders are not interested in using stoploss because they do not know much about it. Proper use of Stoploss can save you from huge losses which creates another opportunity for you to buy those coins from the market at a lower price.

But in some cases, you may have another regret for using stoploss, because many times it is seen that the coin that you bought has hit the price at which you set stoploss and pumped again. By doing this you will miss a big kind of profit and will create a regret.

[Traderbtcc]

The influence of stop during massive dump is so unappreciated, cause it helps a trader not to Lose all the money whenever there's a flash crash in price, only noob traders would trade without using a stop loss, after a few losses during my first time trading I started using stop loss and so far I no longer lose too much just maybe 1—4% of my initial capital would in that trading, it's always important to set a stop loss whether you are a day trader or a swing trader stop loss will help save your portfolio.

[tbct_mt2]

The influence of stop during massive dump is so unappreciated, cause it helps a trader not to Lose all the money whenever there's a flash crash in price, only noob traders would trade without using a stop loss, after a few losses during my first time trading I started using stop loss and so far I no longer lose too much just maybe 1—4% of my initial capital would in that trading, it's always important to set a stop loss whether you are a day trader or a swing trader stop loss will help save your portfolio.

Sometimes stop loss orders will fail if the market crashes too fast and exchanges fall into superb lags. Stop market orders are helpful to trigger the stop loss orders and if you set that order type appropriately, your position will have more time to be filled in crash market.

The gap between stop loss and stop market orders need to be not too small to have effects.

Anyway, with any type of orders, you should set price for your orders at different price, to increase probability to be filled up all.

[tbterryboy]

Of course it is very influential, if there is a dump then you will be safe, for example if you put your stop loss at -5%,
and when it happens dump it is at -20%, then your money will be safe from another -15% loss, of course it can.
give you a new asset again when you buy back later, even though the stop loss looks useless, for me stop loss is very important at a certain time

Stop loss is never useless, there is a reason why there is stop loss and it describes itself already.
Some people and their greediness, that’s what makes them feel like stop loss is useless.
Just because you used stop loss for once and then you ended up missing a little opportunity doesn’t mean it is useless.

There are times like you have said, when the loss will be too much, but those who are making use of the stop loss feature will have their ass saved from too many losses, but those who don’t have it on will lose way more. That’s just how it is, there will always be both sides, and you just have to know how to use it properly.

[Nahratsak]

Yes, sell stop-loss orders decrease the price more but sometimes they are necessary especially when you trade BTC and expect that a huge dump is coming soon. In all other cases it’s easier to use simple limit orders when you intend to buy on low and to sell on high.

[trigger1975]

I just have realized that stop loss order have a significant influence on massive price decrease.
If a crypto is currently trading at $2, and someone has a stop price of $1.8, selling at $1.79. See, when the price hit $1.80, you are forcing the price to go lower. And same happens in the stop market option too. As you are selling at market best price.

Well, that's supply and demand 101. That's why some traders focus on stop-hunting and it's true not only for cryptos but for every asset: Forex, Stocks, … Indeed a triggered stop order does influence the price even more, the less liquidity is in the particular market.

Nevertheless: stops might get triggered and turn around at very that spot … That's the reality of trading.  Review your trades and check if you might position your stops too close to a significant area (support/resistance area, trendline, …) and if you can safely widen the stop without increasing your risk too much for your next trades. But my rule #1: never open a position without a stop and my rule #2: when a trade is active, I'm only allowed to narrow a stop, but never, never, never ever widen the stop.