HOW IMPORTANT IS STOP LOSS

[MUG1WARA]

In my opinion stop loss is very important when trading, cause it helps us to avoid getting liquidated, in cases where a flash drop in the market happens due to how volatile the crypto market is, stop loss helps us to close our position before we get liqiudated, but if your friend doesn't see the importance of using it, then just let him be maybe that's not his style of trading cause whether you like it or not everyone has their own style of trading so he probably loves trading without any stop-loss set.

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[fullhdpixel]

in cases where a flash drop in the market happens due to how volatile the crypto market is, stop loss helps us to close our position before we get liqiudated

You mean under the circumstance of margin trading?
Yes, getting liquidated might get you big losses whereas you can exit with small losses if you're having stoploss level. Moreover you must have stoploss level at the trend reversal point so that it will be serving the exact purposes.

Because, just to prevent getting liquidated, if you put stoploss at random price level then if market comes back but you may not get same level of position because of less capital right now you are having of the stoploss hit. So, your stoploss level should be derived from same technical analysis.

[xSkylarx]

From the word itself, it prevents you to have more loss when your trade doesn't go the way you predicted it. It is very important because some people get liquidated because they don't set it. Just like what happened a week ago when bitcoin made a flash crash from 56k to 50k in less than 15 minutes. Many people think that their liquidation price is too far that it is impossible to hit and when this flash crash happened it liquidated almost $2b from what I read.

[Issa56]

From the little experience am having I believe stop lose is very important in trading In trading  after buying a coin make sure you set stop lose to avoid lose of fund nobody can predict what will happen after buying buying a coin and is better to lose 5% of your fund than to lose 50% of your fund. Some people believe that stop lose is just a total waste of money but to be honest stop lose is very important in trading am speaking from experience last year when bitcoin was about to dump I bought sxp coin on binance around $3.5 when the coin dump my stop lose was triggered and I was monitoring the coin the coin dump to $0.7 and I bought back the coin and currently sxp is around $4 stop lose really help me to buy back the coin when the price was very low.

[bitgolden]

It is very important because some people get liquidated because they don't set it. Just like what happened a week ago when bitcoin made a flash crash from 56k to 50k in less than 15 minutes. Many people think that their liquidation price is too far that it is impossible to hit and when this flash crash happened it liquidated almost $2b from what I read.

From these kinds of scenarios, I come to a conclusion that for bitcoin trading stoploss is inevitable if you are trading with leverage and if you're trading on spot markets then you can simply hold without stoploss as bitcoin is known for bouncing back these days.

Overall we can summarize observations like this:
We do not need stoploss for bitcoin spot trading when overall bitcoin trend is bullish.
If you're trading any other coin against bitcoin, then probably you need stoploss even in spot trading.

[TheGreatPython]

We do not need stoploss for bitcoin spot trading when overall bitcoin trend is bullish.
If you're trading any other coin against bitcoin, then probably you need stoploss even in spot trading.

Yes, long term holders of bitcoin are holding (literally long term trading) without stop loss. But, at the same time. I guess they must be having trailing stop loss in mind like if you have bought bitcoins for $50k levels and you might have stoploss levels around $51k levels in mind still you will not bother anything when bitcoin is trading above $55k levels. But, if bitcoin prices are coming down to $52k levels then you will start thinking about exiting with least profits.

I am just explaining how stoploss can be used even in spot and long term trading. But, I must agree that bitcoin spot trading definitely not requiring any stoploss to exit as you can hold bitcoins for years.

[Rehan Zakir]

I have attached a picture that tells how stop loss works. And how much important for a traders. A stop loss stops from destroying your whole assets. Stop loss means that you feel that if market goes opposite to me then after that point i will exist from this point. So, it is a very essential tool for traders.

[andthereyou]

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.

Stop loss is the key to maximize profit or protect your capital. Because we don't know when is the peak of a bullrun. Your friend studying 'technical analysis' without using stop loss is useless. Waiting for market to recover after a drop is a big mistake for an investor or trader. I have experienced it before, I did not use stop loss and waiting for the market to recover is very painful.

[Sinjokubhi]

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.

Stop loss is the key to maximize profit or protect your capital. Because we don't know when is the peak of a bullrun. Your friend studying 'technical analysis' without using stop loss is useless. Waiting for market to recover after a drop is a big mistake for an investor or trader. I have experienced it before, I did not use stop loss and waiting for the market to recover is very painful.

Yeah, stop loss is very important to use. Maybe, if you have the guts and strong faith, it's okay not to use it either. However, if this feature exists, why not use it? Instead, it can minimize the impact of losses or risks that may occur later. Because, in technical terms, stop loss is very necessary. If there is no such feature, surely some people will experience difficulties, especially beginners. For beginners who learn without using stop losses, you should start now to try to use this feature. It will be very helpful in managing the funds that you trade and invest. It is better if this feature is put to the best possible use. Stop loss will make us feel calm, because we already know the limits that have been set according to our own will. So be ready to face the planned losses or you won't lose at all. It is unfortunate if this feature is not used at all.

[mamahdedeh]

I have attached a picture that tells how stop loss works. And how much important for a traders. A stop loss stops from destroying your whole assets. Stop loss means that you feel that if market goes opposite to me then after that point i will exist from this point. So, it is a very essential tool for traders.

There are many benefits of stop losses, when we cannot always observe the market, we are placing a measured risk. after all trading is an opportunity, so profit or loss can occur. on the other hand, stop loss prevents us from being greedy, which is usually when we are floating minus then we are afraid to cover losses. even though there is still tomorrow to make a profit

[MIner1448]

Stop loss is primarily needed when you trade futures on the spot market, it is also needed, but you can also close deals on the market if you constantly monitor the chart.
Also, a stop loss is needed, for those who do not often analyze rafic and in order not to drain their deposit, it is better to set a stop at least at 0.

[tygeade]

after all trading is an opportunity, so profit or loss can occur. on the other hand, stop loss prevents us from being greedy, which is usually when we are floating minus then we are afraid to cover losses. even though there is still tomorrow to make a profit

Yes, using stoploss in real trading is becoming a habit for most traders only after they gain some maturity level in trading until then most traders are trading without stoploss like they wait for markets to bounce back to get them profits. I agree with you that stoploss is a tool that every trader must use. When people forget to use stoploss, they are holding the unrealized losses with the hope of market to return back and by forgetting there will be another tomorrow to get them fresh opportunities.

When we are holding beyond stoploss levels then we are wasting time and new opportunity and also we are in danger of losing big as market may go at any level to get us big losses. Holding beyond stoploss will risk all the capital literally.

[Golftech]

Stop loss is primarily needed when you trade futures on the spot market, it is also needed, but you can also close deals on the market if you constantly monitor the chart.
Also, a stop loss is needed, for those who do not often analyze rafic and in order not to drain their deposit, it is better to set a stop at least at 0.

Better to have this feature if you are not always checking the market, it helps a lot in terms of avoiding huge

losses whenever collapse happened with your asset, stop loss will allow you to top up your profits even you

are not monitoring the market, trigger point when you place your target automatically allow you to gain from

your investment.

[doomloop]

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.

Lol I won’t blame your friend and others that are doing the same thing as he does. He’s not the only one, I know a lot of people that don’t like making use of stop loss and their excuse is usually that it can trigger an unnecessary sell, and that can lead you to missing a huge opportunity when there is just a short term fluctuation in price; in a situation like this your stop loss order is going to be activated and then the market will start moving up and you will miss the chance of making profit. I have seen someone complain about something like this on this forum.

So, everyone knows what works best for them, if what people are doing is not working for you, it’s best to do your own.

[kolbalish]

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 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.

You are TRUE that he will learn from his own mistakes. You should have explained it to him and you fulfilled it. You have nothing else to do here. Many people want to understand this issue and many do not. In my sentiment, just as a tortoise hides under its hard shell when it detects a problem, so does a stop loss to me. Stop Loss acts as a safeguard in our trading. If there is a loss and no stop loss is imposed then it is entirely over. Conceivably most people can't withstand it.

[wahyu wida]

There is basically no certainty in trading, sometimes the price can rally for hours, but it can crash within a few minutes. therefore we need stop loss to anticipate unexpected movements, so that our capital remains safe. And don't forget to place your stop loss, don't be too short, but give room for the market to move

[aditasetia123]

There is basically no certainty in trading, sometimes the price can rally for hours, but it can crash within a few minutes. therefore we need stop loss to anticipate unexpected movements, so that our capital remains safe. And don't forget to place your stop loss, don't be too short, but give room for the market to move

to short stop loss is risky to , market sometime absorb stop loss and we will easli liqiuidated. maybe long term investment doesnt need any stop loss, we were focus on developtment and should not look at price frequently like daily trading.

[Hypnosis00]

There is basically no certainty in trading, sometimes the price can rally for hours, but it can crash within a few minutes. therefore we need stop loss to anticipate unexpected movements, so that our capital remains safe. And don't forget to place your stop loss, don't be too short, but give room for the market to move

to short stop loss is risky to , market sometime absorb stop loss and we will easli liqiuidated. maybe long term investment doesnt need any stop loss, we were focus on developtment and should not look at price frequently like daily trading.

It finds no use to you since you are talking about investing but for us as a trader, you will never survive in here if you don't know about this strategy. Stop-loss has something of big help for the traders especially for part-time traders and it is somewhat a savior to possible big losses. But, it doesn't mean that we are still safe doing this, no, we are still in losing but at least we don't get into the point that we entirely lose our funds.

Maybe, if you are in trading, you can appreciate it. I hope you will.

[Twinscoin2017]

Stop loss is very important, as a trader we need to set a price point or limit on when we sell or buy, if we did not set limit we are just like depending on the coin market price that always moving so we can maybe loss without any limitation, we need stop loss and plan everything to prevent posible losing due to high volatility of the crypto market.

[Coin_trader]

Stop loss is very important, as a trader we need to set a price point or limit on when we sell or buy, if we did not set limit we are just like depending on the coin market price that always moving so we can maybe loss without any limitation, we need stop loss and plan everything to prevent posible losing due to high volatility of the crypto market.

Yes stop loss will help trader to limit loss but if you don't know how to use it properly, You might suffer a loss everytime you trade instead of gain due to volatility of the market. It's inevitable for the price of a certain coin to pump and dump on a volatile market. You might loss if you set stop loss within the price range even though it will just recover soon once the price hit your set stop loss. Combining fibonacci level will help you on how to set stop loss.