Stop losses

[mauriek]

A stop loss order is an order made by a broker to buy or sell an investment instrument (either in the form of cryptocurrency or shares) when the price has reached a certain limit.  This order is designed to limit investors' losses. For example, a trader buys Bitcoin and sets a stop-loss order 15% below the purchase price.  So when the value drops, this order will be activated and Bitcoin will be sold as a market order. Although many traders associate this technique with long positions, you can also use it to protect short positions.  This means that the trading product that you have will be purchased if it is traded above a predetermined price.

[Silberman]

Just curious, do any of you set stop losses and recollect again later? Or do you just HODL regardless of what the dip is.

I think you are confusing two different actors in the market, investors are interested in the long term and once they select a coin they are not going to be interested in selling their coins even if the market is going down, traders on the other hand are interested in the short term fluctuations in the market and as such when there is an important decrease in the price they need to set a stop loss as they know that being part of the market when it is going down could take them months to recover in the best case scenario, so depending on what you are different tactics are needed.

[sana54210]

It totally depends on the type and duration of your trading. It also focuses on market analysis and decision making accordingly. Long-term investment decisions usually do not use stop losses if the market analysis is considered appropriate. Again, in the case of short-term investments, if the market analysis is positive, then it is not appropriate to use it in the hope of making more profit. However, stop loss is a very important method in the side-way market. Because in this case, the stop loss method will help you to avoid the possibility of big losses. However, it is not mandatory to use it in all cases or it may not be considered as the right decision.

Stop loss is important to safeguard our capital but people are having misconception about stoploss because they are ready to hold their positions rather than booking losses at stoploss. What we need to understand here is, stoploss is not only for cutting of a losses early but it will help us to get into another position as early as possible compared to those traders who are trading without stoploss.

When traders are not having stoploss levels then they might need to wait for more time and within that time they might be losing other good opportunities but when you are exiting at stoploss levels then definitely you could find good opportunities to recovery your losses.

[NewRanger]

When making a trade this is also what we need always make a stop loss this is one of the common mistakes they get the urge to get more to comeback their money this is a mental battle if you want to cut your loss and try again for your trade or just simply holding your position even losing more money. In making a trade I highly recommended having a decision with your trade such as Cross or an Isolated trade so you can limit your risk. Stop-loss makes your money safe. When making a trade always be conscious of having a risk to your funds.

stoploss as if mandatory for traders to anticipate if the analysis is wrong. especially if we cannot always see the market, it is very necessary to secure our capital. sometimes many people do not wear it, and if there is a rally going down they can lose more. but if we can always be in front of the market then cutloss can also be used to minimize losses

good traders with structured trading plan will always set stop loss in order secure their fund. By using stop loss we can make more trades in future, meanwhile if we didnt set up it we could only make single trade only. this is the function of using  money management strategy, we can save our money if suddenly market crash sharply, because no one when it happen. Fud could occur anytime to make market panic.

[Ziskinberg]

When making a trade this is also what we need always make a stop loss this is one of the common mistakes they get the urge to get more to comeback their money this is a mental battle if you want to cut your loss and try again for your trade or just simply holding your position even losing more money. In making a trade I highly recommended having a decision with your trade such as Cross or an Isolated trade so you can limit your risk. Stop-loss makes your money safe. When making a trade always be conscious of having a risk to your funds.

stoploss as if mandatory for traders to anticipate if the analysis is wrong. especially if we cannot always see the market, it is very necessary to secure our capital. sometimes many people do not wear it, and if there is a rally going down they can lose more. but if we can always be in front of the market then cutloss can also be used to minimize losses

good traders with structured trading plan will always set stop loss in order secure their fund. By using stop loss we can make more trades in future, meanwhile if we didnt set up it we could only make single trade only. this is the function of using  money management strategy, we can save our money if suddenly market crash sharply, because no one when it happen. Fud could occur anytime to make market panic.

No plan, NO direction. Traders had come and lost their money because they don't have such a thing. Traders are using the stop-loss strategy as was the most important tool to save from losing their funds.
It wasn't the urge to use this stuff if we are full-time traders but if we just have a limited time to monitor our trades, it is a must for us to consider. I can't imagine what will happen to us when we wake up early morning and all our funds are gone, that something terrible, right? But if we use stop-loss, we surely save some of it. That is how it worlks.

[tygeade]

By using stop loss we can make more trades in future, meanwhile if we didnt set up it we could only make single trade only. this is the function of using  money management strategy, we can save our money if suddenly market crash sharply

Yes, keeping the open position in negative profits and then watching it with all pain of losses and along with seeing other good opportunities are missing out because of not having enough capital to trade with, must be very much frustrating situation any trader could face. Trading without stoploss must be a failure of money management principles. When we are not having something as per the basics of recommended pro trading plans then we cannot expect good results all the times.

It wasn't the urge to use this stuff if we are full-time traders but if we just have a limited time to monitor our trades, it is a must for us to consider.

I disagree. Even you are a full time trader, you must go for stoploss orders because I have experienced market situations where prices are jumping in quicker manner and in that kind of situations we cannot do anything even we are watching markets closely.

[Silberman]

It totally depends on the type and duration of your trading. It also focuses on market analysis and decision making accordingly. Long-term investment decisions usually do not use stop losses if the market analysis is considered appropriate. Again, in the case of short-term investments, if the market analysis is positive, then it is not appropriate to use it in the hope of making more profit. However, stop loss is a very important method in the side-way market. Because in this case, the stop loss method will help you to avoid the possibility of big losses. However, it is not mandatory to use it in all cases or it may not be considered as the right decision.

Stop loss is important to safeguard our capital but people are having misconception about stoploss because they are ready to hold their positions rather than booking losses at stoploss. What we need to understand here is, stoploss is not only for cutting of a losses early but it will help us to get into another position as early as possible compared to those traders who are trading without stoploss.

When traders are not having stoploss levels then they might need to wait for more time and within that time they might be losing other good opportunities but when you are exiting at stoploss levels then definitely you could find good opportunities to recovery your losses.

Trading without a stop loss is bad enough but there are many people that are trading using leverage without it, and this is imply awful as you only need for the market to move a little bit against your prediction and then you lose all of your capital, so to all of those that want to be traders and are expecting to make a career out of it remember to always use a stop loss, I know there are circumstances in the market that will make some of those traders to reconsider that decision but it is simply not worth it as the risk is simply too great.

[Cherylstar86]

Just curious, do any of you set stop losses and recollect again later? Or do you just HODL regardless of what the dip is.

I didn't have to set it up, because I lost already regardless of bear or bull market. All I need to do as of now is to hodle in order to survive and take my gains for future market recovery. When you're taking chances aggressively, you won't sustain once trading pressures happened unexpectedly.

[perfect999]

Even you are a full time trader, you must go for stoploss orders because I have experienced market situations where prices are jumping in quicker manner and in that kind of situations we cannot do anything even we are watching markets closely.

People are these days having some excuse for not using stoploss levels and one of them must be they are watching market continuously so they are saying that they do not need to use stoploss levels. The scenario you have notified must be the appropriate one for anyone to go for making use of stoploss levels regardless of they are trading all the day or not.

When you're taking chances aggressively, you won't sustain once trading pressures happened unexpectedly.

Being aggressive must be an emotional failure due to market pressure. Traders do assume that they have target levels and stop levels hence being aggressive will not impact but when your mind is not in stable state then you may choose wrong signals to enter which could be avoided if you are not aggressive.

[CryptopreneurBrainboss]

I didn't have to set it up, because I lost already regardless of bear or bull market. All I need to do as of now is to hodle in order to survive and take my gains for future market recovery.

That's the easiest way out or you can increase you chances of profiting more buy trading. Your trading here doesn't have to do with profit seeking but increasing your bag. Lets assumed you had 0.2 BTC and already the market is against you if you were to put stop losses and sell but you can used that in your favour by selling now and rebuying when the market dip further.

This isn't to be done immediately but you can observe the market yourself and engage when you see the opportunity like if the resistance level wasn't successful broken which means a retest of the support level is bond to occur, you can take advantage of this by placing a stop loss order, wait for the maket decline then rebuy and having more coins at the end.

This can be repeated on different occasions and if you get your predictions right, you wouldn't have to wait for a full market recovery to be at profit again. As a trader you should be comfortable trading in every market scenario whether it's bullish or bearish.

[tvplus006]

Just curious, do any of you set stop losses and recollect again later? Or do you just HODL regardless of what the dip is.

HODL is not always the answer if you are a real trader you won't believe in HODL since there's a lot of opportunities to earn in the market whether the price is going up or going down. Not having a stop loss in trading I can say is a mortal sin, every intermediate or pro traders always has a stop loss whenever they enter the market.

While the bull run continued, few people remembered about the stop loss. But as soon as the market turned in the other direction and investors began to experience Fomo, everyone begins to understand that it is better to fix your loss than to continue holding a position whose price is decreasing every day. In addition, stop loss provides an opportunity to enter the market on more favorable terms.

[Silberman]

Just curious, do any of you set stop losses and recollect again later? Or do you just HODL regardless of what the dip is.

HODL is not always the answer if you are a real trader you won't believe in HODL since there's a lot of opportunities to earn in the market whether the price is going up or going down. Not having a stop loss in trading I can say is a mortal sin, every intermediate or pro traders always has a stop loss whenever they enter the market.

While the bull run continued, few people remembered about the stop loss. But as soon as the market turned in the other direction and investors began to experience Fomo, everyone begins to understand that it is better to fix your loss than to continue holding a position whose price is decreasing every day. In addition, stop loss provides an opportunity to enter the market on more favorable terms.

This is a clever observation, people became complacent, the bull market had been going for almost a full year at the moment and people thought that this was going to continue forever, but we know the truth, at some point things were going to change and the market will suffer a correction, and just as people left behind the usual precautions that they took that is when the market crashed and they suffered huge losses because they forgot to put a stop loss.

[RokokGudangGaram]

Just curious, do any of you set stop losses and recollect again later? Or do you just HODL regardless of what the dip is.

HODL is not always the answer if you are a real trader you won't believe in HODL since there's a lot of opportunities to earn in the market whether the price is going up or going down. Not having a stop loss in trading I can say is a mortal sin, every intermediate or pro traders always has a stop loss whenever they enter the market.

While the bull run continued, few people remembered about the stop loss. But as soon as the market turned in the other direction and investors began to experience Fomo, everyone begins to understand that it is better to fix your loss than to continue holding a position whose price is decreasing every day. In addition, stop loss provides an opportunity to enter the market on more favorable terms.

This is a clever observation, people became complacent, the bull market had been going for almost a full year at the moment and people thought that this was going to continue forever, but we know the truth, at some point things were going to change and the market will suffer a correction, and just as people left behind the usual precautions that they took that is when the market crashed and they suffered huge losses because they forgot to put a stop loss.

Thank you for pointing that out. While this is a fact, many people still failed to do so and incurred losses and had fainted hearts. And perhaps they are failing to do it around this time as well, which can be due of too much eagerness and forgetting some important matters to consider in doing HODL.

[Fredomago]

Just curious, do any of you set stop losses and recollect again later? Or do you just HODL regardless of what the dip is.

I didn't have to set it up, because I lost already regardless of bear or bull market. All I need to do as of now is to hodle in order to survive and take my gains for future market recovery. When you're taking chances aggressively, you won't sustain once trading pressures happened unexpectedly.

A matter of how long you can take the pressure, for some who treat their money as tool of retirement  investment, they are not being bothered by the market movements, they have their targets and they are willing to wait till they reached it.

While, for those who don't have that much budget fear will conquer them and instead of waiting they'll be force by the current situation and sell their assets even it's still in red,

Stop and loss played big role especially for those experienced traders who knows how to deal with every market situation, using this as a tool to prevent losing a lot knowing that there's always another time for them to recover in case the direction of the market is not favoring them.

[TheGreatPython]

I didn't have to set it up, because I lost already regardless of bear or bull market. All I need to do as of now is to hodle in order to survive and take my gains for future market recovery.

That's the easiest way out or you can increase you chances of profiting more buy trading. Your trading here doesn't have to do with profit seeking but increasing your bag. Lets assumed you had 0.2 BTC and already the market is against you if you were to put stop losses and sell but you can used that in your favour by selling now and rebuying when the market dip further.

This isn't to be done immediately but you can observe the market yourself and engage when you see the opportunity like if the resistance level wasn't successful broken which means a retest of the support level is bond to occur, you can take advantage of this by placing a stop loss order, wait for the maket decline then rebuy and having more coins at the end.

This can be repeated on different occasions and if you get your predictions right, you wouldn't have to wait for a full market recovery to be at profit again. As a trader you should be comfortable trading in every market scenario whether it's bullish or bearish.

I do not know how easy that is to do. I understand that you think some people can do it but it is not that easy and there are many people like me who can't do it, which is why I think we should not even try it. I have tested it before and I sucked at it so now I am not even looking at it, which I think I will continue to do in the future as well. This isn't to say that other people should not do it, if you are capable of being a great trader then go ahead and do that, nobody can stop you from doing it.

However one thing is for sure, if you are trying to do something that you are having hard time understanding then you are going to end up losing a ton of money, that is just simple facts of life. Only go with the thing you can understand and holding is very simple, there is nothing to understand, just buy and do nothing else and that's it, very simple.

[batang_bitcoin]

Thank you for pointing that out. While this is a fact, many people still failed to do so and incurred losses and had fainted hearts. And perhaps they are failing to do it around this time as well, which can be due of too much eagerness and forgetting some important matters to consider in doing HODL.

They're forgetting it because they're pushing their emotions rather than the important strategy that they have to use. And as they saw the bull market, they're forgetting to take some gains for their own share. While they're thinking that the market will go as high as it can, they don't know when to take profit and instead, they've taken losses so they have to cut loss again if they ever bought at the top without creating a strategy of when to profit.

[Johnyz]

Thank you for pointing that out. While this is a fact, many people still failed to do so and incurred losses and had fainted hearts. And perhaps they are failing to do it around this time as well, which can be due of too much eagerness and forgetting some important matters to consider in doing HODL.

They're forgetting it because they're pushing their emotions rather than the important strategy that they have to use. And as they saw the bull market, they're forgetting to take some gains for their own share. While they're thinking that the market will go as high as it can, they don't know when to take profit and instead, they've taken losses so they have to cut loss again if they ever bought at the top without creating a strategy of when to profit.

That’s too bad for them, I mean trading with a lot of emotions are not good and you can’t focus on your strategy if you are too emotional. Cutting losses as necessary, don’t let the market burn all your assets it’s better for you to prevent it at first by doing the cut loss strategy, save your money if you see already the downtrend, don’t wait for any signal as it is already confirmed once it hits your cut loss price.

[MFahad]

Thank you for pointing that out. While this is a fact, many people still failed to do so and incurred losses and had fainted hearts. And perhaps they are failing to do it around this time as well, which can be due of too much eagerness and forgetting some important matters to consider in doing HODL.

They're forgetting it because they're pushing their emotions rather than the important strategy that they have to use. And as they saw the bull market, they're forgetting to take some gains for their own share. While they're thinking that the market will go as high as it can, they don't know when to take profit and instead, they've taken losses so they have to cut loss again if they ever bought at the top without creating a strategy of when to profit.

Stop losses often get hit and then market moves in our direction. That's the reason people avoid using stop loss. If you are an experienced trader, you may avoid stop loss in spot trading but never avoid stop loss in future trading.

[pawanjain]

I didn't have to set it up, because I lost already regardless of bear or bull market. All I need to do as of now is to hodle in order to survive and take my gains for future market recovery.

That's the easiest way out or you can increase you chances of profiting more buy trading. Your trading here doesn't have to do with profit seeking but increasing your bag. Lets assumed you had 0.2 BTC and already the market is against you if you were to put stop losses and sell but you can used that in your favour by selling now and rebuying when the market dip further.

This isn't to be done immediately but you can observe the market yourself and engage when you see the opportunity like if the resistance level wasn't successful broken which means a retest of the support level is bond to occur, you can take advantage of this by placing a stop loss order, wait for the maket decline then rebuy and having more coins at the end.

This can be repeated on different occasions and if you get your predictions right, you wouldn't have to wait for a full market recovery to be at profit again. As a trader you should be comfortable trading in every market scenario whether it's bullish or bearish.

I do not know how easy that is to do. I understand that you think some people can do it but it is not that easy and there are many people like me who can't do it, which is why I think we should not even try it. I have tested it before and I sucked at it so now I am not even looking at it, which I think I will continue to do in the future as well. This isn't to say that other people should not do it, if you are capable of being a great trader then go ahead and do that, nobody can stop you from doing it.

However one thing is for sure, if you are trying to do something that you are having hard time understanding then you are going to end up losing a ton of money, that is just simple facts of life. Only go with the thing you can understand and holding is very simple, there is nothing to understand, just buy and do nothing else and that's it, very simple.

That's true until some extent. Trading is not for everybody but at the same time we should put in enough efforts and practice a lot to learn to trade correctly.
Yes we do lose our money in the beginning due to our mistakes but we only learn when we make mistakes.
This is why we should not put huge money in the beginning. Start with a low amount and gradually increase when the profits come in.
Even I had started to trade a few years ago but since I was losing money I took a break and learned more about the analysis and started to trade again recently.
Identifying mistakes and learning from it the best strategy IMHO.

[batang_bitcoin]

Thank you for pointing that out. While this is a fact, many people still failed to do so and incurred losses and had fainted hearts. And perhaps they are failing to do it around this time as well, which can be due of too much eagerness and forgetting some important matters to consider in doing HODL.

They're forgetting it because they're pushing their emotions rather than the important strategy that they have to use. And as they saw the bull market, they're forgetting to take some gains for their own share. While they're thinking that the market will go as high as it can, they don't know when to take profit and instead, they've taken losses so they have to cut loss again if they ever bought at the top without creating a strategy of when to profit.

Stop losses often get hit and then market moves in our direction. That's the reason people avoid using stop loss. If you are an experienced trader, you may avoid stop loss in spot trading but never avoid stop loss in future trading.

In futures, it's very important to use stop loss. And when you're in spot, you can avoid it if you want to since you're on the spot trading and you're monitoring the markets. That means that you're there and watching the market closely. If there's a sudden rushing plummet, you can close your orders and have yourself stop loss on your own manually.

That’s too bad for them, I mean trading with a lot of emotions are not good and you can’t focus on your strategy if you are too emotional. Cutting losses as necessary, don’t let the market burn all your assets it’s better for you to prevent it at first by doing the cut loss strategy, save your money if you see already the downtrend, don’t wait for any signal as it is already confirmed once it hits your cut loss price.

We cannot blame them but it's a fact that if you're very emotional with your trades, you're prone to losses.