Stop Loss influence in massive dump

[carlfebz2]

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.

Stop-loss is only useful for those who do actively trade and setting up 2% stop loss would easily be eaten but it actually have some pro's because you an eventually earn those
even if you do have lots it and this will vary on someones capacity.Playing with prices or volatility is hell of a lot stressful thing to be done.

Bitcoins price can swing up to 10% correction and if you do set some shallow stop loss then that would really be easily eaten or triggered up.

When you do make swing trades then this kind of tool wont really be that necessary.

[bitgolden]

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.

There is of course a bit of a detail that many people forget and you should add that too. If you deal with stop loss, specially with a lot of drop as well, you should also focus on getting back in part of it as well, why? Because if you just sell, and do not buy, that means you just lost money and that's it, end of story. I do not think that it is really reasonable to use stop loss without any intention of getting back in.

If you plan on getting back in, what does it mean to have a good profitable return? It means that you should get out quicker and you should get in at the bottom, that is the ideal, so having a 20% stop loss is cool, and going back in when it is 30% or so down would be smart move as well. I do not know how you could handle the numbers, everyone have different numbers, but there is a fact that you have to figure out what to do after stop loss is hit.

[TheGreatPython]

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.

I think you are talking about the Bitcoin slight downfall recently but the topic is actually about usage of stop loss function and if it actually helps or just makes things worse since we could have waited and got better price for the same token/coin.

With bitcoin I will never even think of using such functions because the price always swings but I use it for some other coins because I cannot keep a track of all the coins I own and how they are performing so the best way to maintain portfolio and avoid big loss is to place orders at lower than the market value in case the coin drops, we don't lose too much money for that one coin.

[7788bitcoin]

With bitcoin I will never even think of using such functions because the price always swings but I use it for some other coins because I cannot keep a track of all the coins I own and how they are performing so the best way to maintain portfolio and avoid big loss is to place orders at lower than the market value in case the coin drops, we don't lose too much money for that one coin.

If you are planning to book the profit thinking that the market is having a major correction then you might use the stop loss function with bitcoin, if not even i will not use the stop loss function if you are a day trader because the massive swing in price on a daily basis. The options are great for the stock market but you are right it is not a perfect fit in a highly volatile market like bitcoin.

[lixer]

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 does only one thing and that’s to stop your losses from going further. You set it up because you don’t want to lose too much, so it helps you prevent that from happening. But starting up the trade again is up to you, you can decide to buy back that coin again if you want.

It can as well be the other way round, the price can drop and instead of going up, it can just continue going down from there and having your stop loss feature ready and set will prevent you from that too much loss that you would have encountered during your absence. It’s just how it happens, sometimes you’re so unlucky and prices will go up after dropping to the level of your stop loss.

[fullhdpixel]

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.

Has happened with me too in past and it feels like stop-loss in the worst thing but I have been saved multiple times then I feel like its a blessing. So, I use it now but I don't use it on coins which I know have the potential to rise again but are currently down.

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.

Yes, it is kind of a domino affect where one sells and the whole market starts drifting down but I don't think small traders play a big role in this. Our small orders placed at lower value indeed cause the market to decline even further but its like taking away a spoon of water from the sea, it is negligible.

[wxa7115]

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.

Obviously a stop loss is going to have a negative effect when a dump is happening, however that is a concern that no one should share, if you are trading then you are in it for yourself, your goal should be to earn money and nothing else, while a better understanding of the market could seem to improve your chances of making profits there is also knowledge that will not do so and this is one of those instances.

A stop loss is nothing more but the point in which your losses become simply unacceptable for you the trader and in which you decide to automatically sell, its aftereffects on the market are clear but it is not necessary to think about it since that does not benefit you in any way.

[doctor877]

it just seems so, but stop loss is a protective means to reduce your losses when trade goes against you. this dosent force the price down, because markets usually retraces and these retracements mostly go to touch some tight stop loss which after it will change trend and move higher. thats how it plays out.

[tygeade]

There is nothing like that man, it’s just because of how you set your stop loss, I guess you were trying to save much, and when you set it at point that is very small like that, just a slight decrease and the stop loss will cut your trade, so it’s best to increase it a bit more so that it will only happen when there is a bigger decrease in price.

And moreover when you set a stop loss, you already know what happens is that the stop loss will activate when it drops to the set rate and the trade will cut, so why then do you complain about the settings you have made yourself? You’re supposed to be watching your trade, when the stop loss saves your loss, then you put the trade back in if you think it will go up.

[repear7]

Recently i also use stop lose maximum time. I think stop lose is important at this market situation. Stop lose really save us from big lose. But, It’s very important to set stop lose at right price, Otherwise we can miss profit sometimes.

[cryptoaddictchie]

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.

Actually my opinion used stop loss only when you are gonna be busy to watch or monitor the price of your trades. Cause there are some whales that can triggered closer range of your stop loss resulting to dumped. Yeah that's the thing about stop-loss, I hate to use it cause when I'm not around and checked it. Damn, the stop loss triggered and the price climb back up. It's like letting your loss prevail which better if you hold and wait for it to climb.

[Bitcoin_Arena]

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

This is very true. Have you ever wondered by the market dumps massively by 7-10% so quickly as compared to when it's rising?

It's because after a small dump, stoploss orders are triggered in the spot market leading to a chain of triggering other stop losses

I always try to set my stoploss order at some percentage below a good support level because prices tend to bounce off at support levels

[Stedsm]

I believe that if you've got to know correct retracement points, correct order blocks as well as can see whale orders and even volumes, then I believe there's nothing that could get you stopped out unless a sharp move takes place. Check the support areas and if you believe that they're the places where bots take (or shake) out their positions and create a wick to eat the stops below the support, just wait till that area comes because that becomes your buy zone and should be bought there only. Watch for the lower lows from your entry point and then, set your stops there (keep the timeframe low to get correct points) and check resistance areas too, if you believe that the price will fall back, sell it right up there and then repeat it for 2-3 times (like swing trading). Stops only take a hit when the market volume gets exhausted, remember that.

[Wawa2013]

I don't agree that stop-losses can lead to massive dumps, because every trader doesn't necessarily use the stop-loss feature. Although many traders
use the stop-loss feature, it is very unlikely that they will set their stop-loss at the same percentage price. Another thing that makes the stop-loss is
not necessarily the cause of the massive dump, because every trader does not necessarily use a stop-loss feature on the same coins. Therefore, for me,
it is very unlikely that the stop-loss will affect a massive dump.

[DarkDays]

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.

I get what you're saying but stop losses are only placed by people that can't incur further losses, that is when placing a sale stop loss. Whether you place one or not, in my opinion does not reflect the market and it may cause a dump but let's not forget that these stop losses can also be placed for buying orders. Stop losses being triggered one by one where the market can go into a downward tumble, is often when there's low trending volume. Though, ultimately, it depends no the market.

[wxa7115]

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

This is very true. Have you ever wondered by the market dumps massively by 7-10% so quickly as compared to when it's rising?

It's because after a small dump, stoploss orders are triggered in the spot market leading to a chain of triggering other stop losses

I always try to set my stoploss order at some percentage below a good support level because prices tend to bounce off at support levels

True, people need to remember that the overall movements we see on the market are an aggregate of what we do as individual investors or traders, if more people were investors and held their coins for the long term the volatility will be many times lower, but since there are many people out there that want to be traders and are using leverage then this increases the volatility especially when the price goes down.

This is because two factors, the first factor are margin calls which happens when your leveraged trade goes against you and your position is closed, and the second factor is your stop loss which adds liquidity to a market that already has too much and it is why the price is going down.

[tvplus006]

If you are directly in front of the terminal, there is no need to set a stop loss. Most stop-loss triggers are caused by false breakouts of the level, after which the price is restored. I try to close trades manually if I see that the price is fixed below the support level.

[bassbity]

Judging from the phrase "stop loss" it is very clear that it is to stop losing our portfolio. so that this method is very important in minimizing large losses. maybe that's a very general definition. Means the stop loss method as a reminder. (maybe what I say is almost the same). However, most of us assume that stop losses are often underestimated, have the intuition that prices will continue to rise and fall, and when our attention is not focused, big losses are inevitable.

Stop loss is a red line to avoid falling into a deep abyss.

[Theb]

Limit/Market Orders are something that you can analyze and see what is the sentiments of the traders holding the asset so you are right there is a big influence in the mind of the traders when they see the buy and sell orders of an asset.

Example scenarios

• When you see that the sell orders are a lot of and there is a thin buy order

          this only tells us that the ones holding it are selling and barely anyone is interested in buying at the current market value

• When you see that there is a lot of buy orders and sell orders are thin

          this can be translated to a lot of people are interested in buying while only a few people are interested in selling their position at the current market value
 
Everything you see even outside the charts of an asset can be translated into something but keep in mind that this can be manipulated by traders or a group of traders as well as they can put int temporary buy and sell orders just to sway the market in their way so you always have to confirm if the orders are really being filled in or not.

[wxa7115]

If you are directly in front of the terminal, there is no need to set a stop loss. Most stop-loss triggers are caused by false breakouts of the level, after which the price is restored. I try to close trades manually if I see that the price is fixed below the support level.

If was trading the markets and I was watching the market action I would still use a stop loss, the reason is that the market can move a lot faster than what you can react, we know this happens with bitcoin all the time with big positive or negative candles.

You need to have your stop loss already in position before the price slips past your selling point and you lose even more money than what you thought you would lose in it, while this may not seem like a big deal over the course of hundreds of trades this quickly adds up to a lot of money.