HOW IMPORTANT IS STOP LOSS

[doctor877]

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.

[mk4]

While traders using stop loss are very very common(understandably so), some people simply doesn't like using it simply because it doesn't apply to their sort of 'style'. Always remember that trading strategies are going to vary from person to person.

[GreatArkansas]

I have a thread before about stop-loss - One of the Best Weapons in Trading. It shows how really important stop loss if you are doing trades.
For me, stop loss likely a saviour, especially if you are doing futures market, it will help to avoid liquidation.
And addition, using stop loss should also come with risk management, like risk:reward ratio, your stop-loss should come with a good risk:reward ratio.

Some people are telling that stoploss is a trap, since probably most of them are being stoploss hunted on every trade position there, but they don't appreciate the usefulness of it. In the long run, you will appreciate why stop-loss is very important.

[Woodie]

Got in a discussion with a friend that recently started learning Technical Analysis and then he said he trades without using stop Loss.

Well for me I think failing to use a stop loss is failing to manage your risk, its all part of risk management!

FYI trading without a stop loss doesn't always mean losing trade, sometimes you get to see losing trades turn into winners because of the trading style or avoid placing a stop loss in the wrong place.

I told him no good trader trades without stop Loss.

I know some that actually don't because they believe in their analysis and don't mind blowing an account as they can afford to lose, and also believe in going big or go home.

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.

Maybe his a profitable trader, have you asked him how things are going for him in the life of trading without using a SL.

[Natsuu]

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.

Yes, leave him be as he will definitely learn from this experience, and he will learn to listen to advices.

Stop-loss is important to stop our loses to our desired amount. Although one must not say desired amount for loses, but we are actually the one setting the amount of loss we can somehow accept. The downside of stop-loss is having your trade to be stopped when sometimes it bulls after the fall.

Another thing about stop-loss is it is most advantageous for long term traders/investors who have limited amount of time in their hands.

[crzy]

Stop loss saves me from losing more money, and this one works for me but of course you have your own strategy and Stop loss might not be option for you.

If you don't know what to do when the market dumps, better not to panic and asses your strategies or look for other way that fits your trading style, some don't have a stop loss at all but they remain profitable because they are buying at the bottom price and sell at the peak price.

[mrkfdr]

using or not using SL totally depends on the market you are in.
then, on your strategy and risk management.
 
to declare that if one is not using SL is a bad trader ... hmmmm it was probably right when there was one market out there.

just for the discussion
how do you place a Stop Loss when trading Bitcoin ..
buy price is 49800

SL in 49700, 49400, 49000, 48500 , 47000, 44000, 39000 ?

[irsykes]

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 trade use stop loss for now because sometime in future trading, it can minimize my loss if coin's price is moving opposite from what i aim. Because in future there are possibility i can lose all my money. But in spot trading, i rarely use it because maybe i think if in spot, as long i am not sell my coins iam not lose. And then afraid if price touch my stop loss price and then pumped again.

[passwordnow]

Not that many I guess and with the few that don't use it, your friend is part of it. There are traders that don't want to be instructed by other people and that's why they don't listen to the advises of other traders. It's very important and usual to see traders using stop loss but if they don't do that, they'll probably learn the lesson in a hard way. Because they have no way to stop the losses automatically but maybe we don't see them do it manually but that's likely in a panic manner.

[watergold]

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.

And like I did, sometimes stop loss is important for those who hold altcoin. while bitcoin without stop loss will eventually grow again and exceed the previous price. the first thing we need to note is the style and comfort of one's trading varies as said by Mr. @mk4 above. I agree that different trading strategies make the person less concerned with stop loss, as a high level of confidence will return the price making things much more effective.

[Dilerium90]

I have been in the cryptocurrency market for over 4 years and I can say that stop loss is your risk, which you put into a trade. The only moment when you can trade without stop loss is when you enter a trade with a volume of 1-2% of the deposit.

[Alisha-k]

Stop loss is one of the risk management technique adopted by traders to avoid heavy losses. The market I highly volatile and spikes occurs most often. Also considering that news (fundamental analysis) can change a trend at any point one has to use stop loss to limit the Level of loss from the market.

As a good trader losses should be part of your expectations from the market. But you have to ensure your profits coverup the losses

[Digital_Lord]

Stoploss is very important if you want to trade wisely. Almost 3 month ago i forget stoploss and when i woke up market dumped almost 40%. Now i did not trade without stoploss. One cam loss big money if did not use stoploss

[AakZaki]

I think that's very important. But it all depends on the user. Using the Stop Loss feature to reduce losses must also pay attention to the rules of support and resistance. But everyone is different, some are based on presentation, some are based on price. Maybe this is widely used by Future traders, to avoid liquid. Although ordinary traders also use this feature. However, I see that not all markets have this feature.

[Ridwan Fauzi]

Stop loss is important for me at least for trading in the future market. By using stop loss I'll know how much money in my fund that I can willing to be used so as I'll trade back with confident again. Yeah, most trading that I do when I found a huge loss I'll not confident anymore to trade and it is will affect to my strategy/analyst.

Unless I choose trading spot, I rarely use stop lose feature when I trade as long as I choose a good coin like bitcoin. Because I'll choose become a holder when bitcoin price is drop a lot and I'll still confident to holding it. Your friend will understand how important the stop lose strategy when he got a huge lose, let him realize for himself.

[abel1337]

Damn the self-confidence of not having a stop loss. Even experienced traders are using stop loss to avoid a massive loss or even a liquidation but newbies right now are like try to go yolo with their assets.
Your friend needs to learn how to risk management and how to minimize his cut loss when the current trade turns out to be unexpected. It is a simple but very effective way to avoid big losses.

[nelson4lov]

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've come across people like this in the past. From my experience and observations, I think using stop loss ultimately depends on the trader. Most people just prefer to let their trades run till it becomes super clear that their bias for that particular trade was wrong while others just want to be on the safer side if the trade goes sideways hence the stop loss orders. At the end of the day, it all boils down to personal preference of each trade and what works for he/she.

[maxreish]

I never trade without stop loss. Its like an armor in a battlefield. Even those traders that have more experienced needed this tool as the market always make a side moves. If by instance other doesnt use this stop loss, they may do some tight monitoring and cut loss their trade right away if they see some unexpected sideways.

I remembered not using stop loss and liquidated my whole fund because of that.

[kramchers]

I think using STOP LOSS is also helping in some other way, and I don't see any wrong if ever someone use it when they do trade in the actual platform anyway. Because its help us to control our loss unlike not using it we might get feel bad and regret if we don't set it up our stop loss methods.

[gabbie2010]

I think using STOP LOSS is also helping in some other way, and I don't see any wrong if ever someone use it when they do trade in the actual platform anyway. Because its help us to control our loss unlike not using it we might get feel bad and regret if we don't set it up our stop loss methods.

I always ensured that all my trades are executed with a stop loss, I personally knew the importance of using it to reduce my risk and manage my trades, although I trade cryptocurrencies manually thus  setting up a virtually stop loss such that when the price reach my stop loss target I manually close the trade of course monitor all my trades throughout daily and take profits appropriately.