Stop Loss influence in massive dump

[Little Mouse]

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.

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[Oshosondy]

Stop loss order is very important for someone not to lose much during abrupt price drop. I think this question is like saying can fire burn a house? Yes fire can burn a house. Stop loss will not do anything than price drop. With this current price drop, traders are mostly responsible for it, many of the trader have learned how stop loss is very important and do not play with it. That is why the price will drop from one stop loss set to another, but at that point, it is also in conjunction with people selling also without stop loss. Stop loss order and selling market order do responsible for price drop both together.

[tbct_mt2]

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.

Which price do you set up your stop loss order?

Your stop loss orders would be set up at the price much higher than the nearest strong supports you define from chart.
It would be a price a bit lower than strong resistance that if is rejected, price will be fallen back. It would be your entry price. Stop loss does not mean stop loss eventually, it is to stop your position, and the best is stop at price that can 100% protect your capital.

Better, it would be a price can help you to get small profit and exit your position.

You probably set up your stop loss at strong support price and sure price will bounce back strongly.

[rat03gopoh]

In general, stop loss recommendations are in the 5-10% range of capital, so the highest sell order originating from the stop loss is only in the area of decline of up to 10%. Don't ignore that trading bots are still doing their part. The massive dump occurred because the volume of buy orders globally was lower.

[Julien_Olynpic]

Large players deliberately move the price towards a large accumulation of stop-losses in order for the price to accelerate downward as a result of massive triggering of these orders. You see, it can be compared to a room with many charged mousetraps. It is worth throwing a pencil on the floor, as one mousetrap works, bounces, makes another work, the third one, and so on. A chain reaction begins. As a result, the price will not stop moving until all nearby stop losses are triggered.

[goaldigger]

Its hard to tell since not everyone have their own stop loss level, and some are just playing around the market especially the whales. This pullback is big, and this is not just an ordinary stop loss level because the price broke many support level. I personally sold during my stop loss level, because for me I can’t stop the market from dumping if I still hold into it, there are times that you need to sell and take profit, its time for that.

[mk4]

Stop-losses do have some added selling-side pressure due to the obvious reason that you're ending up selling your position, but when talking about higher liquidity coins such as BTC and ETH, it's a pretty safe assumption that it has a really minimal effect. Taking into consideration that while the stop-losses of some traders are getting triggered, buy offers of some traders near that certain price are going to get triggered as well.

[XZERO1]

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.

You always have to make a difference between placing a stop-loss order in a bull and bear market, as of now we can go as low as $30k and still be bullish mid/long-term, so keep that in mind while creating a stop order for your trade

Basically it's smarter to place your stop-loss order on lower prices in a bull market and on higher prices in a bear market, also technical analysis comes handy while placing stop-order in these kind of situation since you can draw some lines on chart and figure out where is the best place that you could place your stop-order that assures you that your order won't get hit unless when it really wants to go all the way down, it does not guarantee that the price stays lower than your exit price but at the very least makes it less likely.

[livingfree]

You're just protecting yourself when you do stop loss.

As for the massive dump, I don't think that it's massive when you're putting yourself into stop loss. In that way, you're just avoiding to lose further if the market goes side ways.

I don't see it as you contributing to a massive dump.

[jrrsparkles]

I don't see it as you contributing to a massive dump.

When more people set their stop loss to protect themselves from further loss it helps the panic sellers to come into play which increases the dump. Simply selling more than buying will help the coins to go lower it happens all of a sudden in huge rate then everyone want to save themselves than thinking about market. isn't it?

[Issa56]

Cryptocurrency is not all about buying and selling of coin lots of people believe they are in profit already after buying a coin and they can't lose there money. but when it comes to cryptocurrency anything can happen you can lose all your funds to a coin you can't trust any coin anything can happen, after buying a coin the first thing you have to do is to set your stop lose to avoid lost of your fund. When ever it comes to cryptocurrency anything can happen at any time and is better for you to lose 5% of your fund than you losing 80% of your funds that's why stop lose is very important. Some people don't believe in stop lose they believe is just a trap, everybody has his or her own method that works for them so I won't also say people that oppose stop lose are also wrong but me personally I really believe in stop lose and I will advise everyone to always use it after buying any coin.

[kawetsriyanto]

I don't see it as you contributing to a massive dump.

Even if it is also a contribution to the massive dump, it is the right of each crypto holder to decide "stop-loss". No one wants big losses in the correction phase, and we may try to sell the coins to buy at lower prices. It is a strategy that can be done by each holder, so nothing wrong with this option. I also will do it if I know there is an upcoming big correction/dump.

[Wexnident]

Well, it certainly forces the market to go down if most stop-loss orders were filled. But then again the opposite could be said to be the same. Buy orders would be filled together with stop-loss orders so it would cancel each other out or at most, a small discrepancy between the two. That is unless, of course, it was intentionally brought down continuously. Still, though, stop-loss is set up to benefit you, not the entirety of the market. Even if it was manipulated, it'd still in the end save you and possibly give you more opportunities to buy at a lower price, so nothing wrong with it tbh. In the end, trading is basically taking someone else's money.

[ubercool]

I always felt that stop loss is the main reason for alts to bleed red whenever Bitcoin drops a couple hundred or thousand dollars. The automatic selling of alts will trigger more and more when the prices drop with it. Even a strong buyer will just wash away if the wave is hard. I know that there are lots of investors who use alts as just a means to grow their Bitcoin but putting stop loss all the time is not a profitable way.

[crwth]

As long as the order of the one who is dumping/sell can fill the entire buy order book, it wouldn't matter. So even if it hits your stop-loss price, as long as you have the order there waiting, you are just filling his order. It wouldn't be traded if you have no orders there. There's always going to be someone's order there no matter what. Especially if the price is close.

It's basically completing the trade.

[el kaka22]

Large players deliberately move the price towards a large accumulation of stop-losses in order for the price to accelerate downward as a result of massive triggering of these orders. You see, it can be compared to a room with many charged mousetraps. It is worth throwing a pencil on the floor, as one mousetrap works, bounces, makes another work, the third one, and so on. A chain reaction begins. As a result, the price will not stop moving until all nearby stop losses are triggered.

If we go with that analogy there will be a moment when the moustraps will end, either because there is no more mousetrap left or because one mousetrap will land on another that has been activated so all the non-activated ones will be safe, but in the end it will end and it is not a forever thing. Now what we have to try to calculate is this; will mousetrap will activate another or is it ending with the next one?

If we can calculate something like that we could actually do a great deal of profit from what is going to happen, if you think it will continue to go down more you could buy a short future and make a lot of money, if you think it will stop and go back up then you could buy long future or just buy straight up and make a good return as well. All we have to do is know when it will end going down because it is obvious that we are not going to see bitcoin at 50 cents right? So that means there must be a price where it will stop.

[livingfree]

I don't see it as you contributing to a massive dump.

When more people set their stop loss to protect themselves from further loss it helps the panic sellers to come into play which increases the dump. Simply selling more than buying will help the coins to go lower it happens all of a sudden in huge rate then everyone want to save themselves than thinking about market. isn't it?

That's the usual logical sequence in the market.

But that's my opinion if he has to stop loss, he don't have to see himself contributing to the massive dump because he's protecting his assets and he can do anything that he want such as stop loss to avoid more loss.

[youdacapt]

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.

Stop loss is the best thing to be relied upon in crypto currency trading; There was a flash dump just 2 days back and people went as high as 60% losss; a stop loss would have prevented that. The only reason why stop loss is said to aid dump is because of traders with fear. Why set a stop loss to 2% loss? better not to trade at all.

Stop loss in your trades is the best decision, never let anyone convince you otherwise as long as it related to crypto currency. You should just be bold enough to set your stop loss at 5-15% gap; to ensure your trade remains alive.

[orions.belt19]

I read somewhere that the dump was due to a mining pool (F2 Pool) sold a huge amount of bitcoins (3633) and leveraged x100 for the selloff. Those who tried to take advantage of the current price movement got liquidated but its not likely that it had something to do with the recent dump. Not sure how accurate the F2 Pool selloff rumor is but stop losses are essential especially in a crypto market that is volatile. Stop losses poses as your security blanket. What's important is how to properly place your stop loss. Ideally, it should be where you can still have a little profit from your first buy but when you're in a bull market like right now, where dips are bound to happen but a bounce is more likely.

[Kelvinid]

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.

That also attracting buyers to lower their buying price. The more traders use this one in a single coin, the more chance to get rid of it and dumps it straight.

But for the buyer's side, they are happy to see this. The huge benefits are now for buyers and they are catching these panic sellers to keep moving down the price and after this, these buyers will manipulate the market and set back the price too high.

But I know that this strategy won't bring the market at worse, just sometimes to accept that it never works that great and beneficial all the time.