HOW IMPORTANT IS STOP LOSS

[LUCKMCFLY]

Got in a discussion with a friend that recently started learning Technical Analysis and then he said he trades without using stop Loss. I told him no good trader trades without stop Loss. I tried to explain to him about the volatility and how trades can go against you especially as a new newbie and you can lose heavily. He seems adamant and I decided to leave him maybe he will learn from his own mistake if it happens. It seems there are also many traders that trade without stop Loss and I wonder how they do it conveniently.

Please share your views on how important stop Loss is and how convenient it can be to trade without stop Loss.

The importance of Stop Loss, is usually very varied, there are many who do not use Stop Loss to stay in the market, for example, if I have a market entry in LONG, I protect this entry with a "Leveraged Short" this forever protect myself against the movement of the market, this is how Jesse Livermore operated in the years 1800-1900, although now there is a lot of technology to do it through bots with artificial intelligence, it has been proven that those who are always in the market are more likely of win.

However, Stop Loss is good to use when there is no similar experience, since it is preferable to lose a small percentage that gives the "Stop Loss" than to lose everything.

It is difficult to be in the market with both operations if there is no help from bots, because each movement must measure the degree of profits and losses, there are many things that must be taken into account.

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[Rruchi man]

If you can actively monitor your trade 24/7, you might not necessarily need a stop loss. I have friends that are full time traders, they are always online monitoring the market, some do not really use the stop loss all the time. When asked, one gave a particularly very striking reason. He said that if there might be a fall ( a loss) before there is a massive profit spike in a trade, so if you play it too safe and set your stop loss prematurely, you might save your penny and miss out massively on some future gains.

I hope there is a lesson to learn from this my story.

[goaldigger]

If you can actively monitor your trade 24/7, you might not necessarily need a stop loss. I have friends that are full time traders, they are always online monitoring the market, some do not really use the stop loss all the time. When asked, one gave a particularly very striking reason. He said that if there might be a fall ( a loss) before there is a massive profit spike in a trade, so if you play it too safe and set your stop loss prematurely, you might save your penny and miss out massively on some future gains.

I hope there is a lesson to learn from this my story.

Stop loss meaning you'll sell when it hit your bottom price and even if you're a 24/7 trader, you must still have this one because this is your guide on when to sell to avoid further losses, and as per the story they still have the stop loss price but not on a dumping market I guess. This one can be considered as your trading strategy, your selling price should still be on your limit so having a stop loss setup is very important for me, I can't execute a trade without this.

[wiss19]

your selling price should still be on your limit so having a stop loss setup is very important for me, I can't execute a trade without this.

Yeah, there are different approaches here being followed by most traders. But, when you're entering a trade you must have stoploss levels in hand is that you can ensure on the event of an expected market movements how much you are affordable to lose. So, deciding about level of stoploss will be a good approach before entering a trade.

I am also never entering into any of crypto trading without finalizing where I'm going to place my stoploss orders. Because, securing my current capital is more important for me than getting new profits.

[Ararbermas]

Stop loss is very important actually for a traders when trading a coin especially if its so volatile. But perhaps mostly full time traders is the one who don't really want to use such stuff, wherien it's because of their own style when it comes to such things in my opinion . What i mean they are really confident without using stop loss because they are in it all the time to protect their profits. And for me usually only those who don't have enough time when trading using stop loss nowadays..

[TastyChillySauce00]

If you can't really do trade for the whole day meanwhile you also don't want to let your asset go down right to the bottom it's very essential but if you really don't care with the dump since you intend to hold the coin for a long time anyway it's not really important.
I personally never liked using stop loss since if I do trade most of them are short term that I could monitor and if I couldn't really monitor the market i'd decide to convert my asset to stablecoin instead.
But, overall certainly very important for people who have more to do than just seeing the market full day.

[AicecreaME]

Stop loss is a temporary greed blocker, which can indeed save you from losing more money in your trading platform wallet. I, myself doesn't use it all the time if I have time to monitor every trade that I entered, I only use it if I'm gonna sleep already or if I'm gonna do something else other than trading. Others use it because they have too many trades too look at so using "stop loss" is really helpful for those kind of Traders, especially in day trading.

[Gheka]

Stop loss is very important actually for a traders when trading a coin especially if its so volatile. But perhaps mostly full time traders is the one who don't really want to use such stuff, wherien it's because of their own style when it comes to such things in my opinion . What i mean they are really confident without using stop loss because they are in it all the time to protect their profits. And for me usually only those who don't have enough time when trading using stop loss nowadays..

Full-time or part-time traders, most of them have to do a stop loss process, if you see some traders who are overconfident and don't set things up early enough, they are sure to lose more because market value jumps very quickly and momentarily, observing and processing after everything has started will be too late, we need to calculate everything in advance. That is the most important point of the stop loss, need the parameters and assertiveness to execute, the delay and the lengthening of the action will make the situation out of control

[Yatsan]

It seems like your friend is going far beyomd doing things to work by his own and would like to learn things freely. Having stop loss is very important for us traders to somehow do manage our funds not to get into deep loss. But it seems that the friend of yours is still not into realizing how risky it would cost him to trade freely having no stop loss. It will look like a gamble having no stop loss added by the fact if you were just a newbie in trading. It will put you into frustration and deep loss keep going into banging against the market pushing your funds into the full limit. Stop loss is important to keep an eye of your funds not to be totally wiped out in an instant. Ignoring such will cost you to gain loss rather than profit. It will not always worthy to take risks because you somehow need to assess and strategize to last long specially in trading.

[MrcMrc]

Stop lose is what every regular and passive trader will go for but to some other traders if their capital is in a stable coin such as Bitcoin will not border to use stop loose,

 I started trading 2 years ago and at the early stage I know nothing about stop loss but I was lucky I made some profits.

[goldade]

Got in a discussion with a friend that recently started learning Technical Analysis and then he said he trades without using stop Loss. I told him no good trader trades without stop Loss. I tried to explain to him about the volatility and how trades can go against you especially as a new newbie and you can lose heavily. He seems adamant and I decided to leave him maybe he will learn from his own mistake if it happens. It seems there are also many traders that trade without stop Loss and I wonder how they do it conveniently.

Please share your views on how important stop Loss is and how convenient it can be to trade without stop Loss.

I think your friend is a very brave person who is ready to lose all his capital in a single trade. Using stop loss is one of the safest thing you could employ to help reduce the risk of losing.
I've been trading for a while now and I can tell you I've been able to save myself from blowing all my capital because I never forget to employ the use of stoploss.
Maybe your friend is so good that he's always accurate with his trades and that have gotten into his head that he no longer set stop loss, I believe there will always be that trade that will go the wrong way and only stop-loss would be able to save him and he won't have used it in the trade and he'll lose all

[beerlover]

It seems there are also many traders that trade without stop Loss and I wonder how they do it conveniently.

Please share your views on how important stop Loss is and how convenient it can be to trade without stop Loss.

I guess for trading bitcoins, you do not need any stop loss. Yeah only for bitcoin trading and not for any altcoin trading.

When you trade bitcoin in spot markets and when you have confident on the futures of bitcoins then you may go trading without worrying on stop-loss levels. For some traders, stop-loss is giving extra pressure so they may feel comfortable when trading without stop-loss.

Moreover, long term holding is a stoploss-less way of trading in long term .

[Lorokan]

For every important feature, there is a disadvantage and this also applies to STOP LOSS; stop loss feature is supposed to help traders maintain a low % loss profile on their trades most of the times and it helps saves capital; but on the other hand, some trades do cross the SL before going on to hit TP; which means that the trader has missed out on a potential profit because of the stop loss functions. Its a 2 way thing; a trader should do whatever suits them

[thecryptogandalf]

When I first started trading, I run just backtest and papertrade for months and one of the most significant things that I realized was what happens when you use stop-loss and what happens when you don't. Stop-loss is extremely significant in my opinion. It is a safety net.

[JooBra]

When I first started trading, I run just backtest and papertrade for months and one of the most significant things that I realized was what happens when you use stop-loss and what happens when you don't. Stop-loss is extremely significant in my opinion. It is a safety net.

Stop loss is a must. Everyone who thinks to take trading seriously needs to learn to use it right. Also having profit margins and stop loss margins is what is most important. Sometimes waiting to long can make all profit to get lost.

[justdimin]

Everyone who thinks to take trading seriously needs to learn to use it right. Also having profit margins and stop loss margins is what is most important. Sometimes waiting to long can make all profit to get lost.

You mean we need to have proper exit point regardless of it will be a positive or negative run of our position in trading? That sounds reasonable. Because I have experienced losses after waiting for more profits. Hence having proper target level also will help very much similar to how stoploss is helping in preventing losses.

Moreover, stoploss is good because it is helping to save time. I am seeing some people who are ignoring on making use of stoploss because they are always confident about bouncing back of market to get them profits but they are enforced to wait for more time. But for the people who exit at stoploss will do other trades and then make profits in comparatively quick time.

[bitgolden]

Moreover, stoploss is good because it is helping to save time. I am seeing some people who are ignoring on making use of stoploss because they are always confident about bouncing back of market to get them profits but they are enforced to wait for more time. But for the people who exit at stoploss will do other trades and then make profits in comparatively quick time.

Yeah, that is another perspective of using stoploss; so far traders do suggest stoploss for cutting losses early but now as per your point, it seems we need to make use of stoploss to cut down the waiting time. I agree that I have traded many times without stoploss and kept waiting for days to week for market to return. Sometimes I got chances to exit for no losses if I do not consider my waiting time with locked capital.

If I have exit at stoploss and tried another trade on next day itself then I might have saved time and might have got chances to make bigger profits as well.

[Scripture]

When I first started trading, I run just backtest and papertrade for months and one of the most significant things that I realized was what happens when you use stop-loss and what happens when you don't. Stop-loss is extremely significant in my opinion. It is a safety net.

Stop loss is a must. Everyone who thinks to take trading seriously needs to learn to use it right. Also having profit margins and stop loss margins is what is most important. Sometimes waiting to long can make all profit to get lost.

Stop loss will prevent you from missing the opportunity to sell at a minima loss, so I don’t see any reason why traders will not set-up their stop loss level, well in fact this can be a big help.

Trading is too risky, I don’t want to lose everything in instant and that’s why I always set-up my stop loss limit just to make sure I’m on the right track. So far, I didn’t hit any stop loss because I always take profit every time I see the opportunity.

[numanoid]

You know, people who using stop loss is for those who aren't certain what they invest.  If people have research anything about their investment before, once they buy the coin/invested, they never will use stop loss. Instead use stop loss, they will keep re-buy/buy the dip because they knows well what they invested.

[tygeade]

You know, people who using stop loss is for those who aren't certain what they invest.  If people have research anything about their investment before, once they buy the coin/invested, they never will use stop loss. Instead use stop loss, they will keep re-buy/buy the dip because they knows well what they invested.

In my understanding, you do not need stoploss for your investments but your trading must need.
There are a lot of differences between trading and investment. For investments you need to go for fundamental things whereas for trading you just need on that particular day's technical things so that you could get into profits or cut your losses earlier. It means only technical analysis may give you stoploss levels and not the fundamental things.

The new perspective of using stop-loss levels is, not only to cut your losses earlier but to save your time as well. I am personally never entering any trade without stoploss levels.