What is stop loss and how it works

[celot]

stop loss aims to put the brakes on your losses so that they are not excessive and not to avoid losses. In a trade anywhere, whether it's stocks or crypto, nothing is perfect, my friend. Everything is full of big risks and you already know what the risk is, namely losses and it's good that you can profit from trading.

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[tvplus006]

A stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. For example, setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%.

When setting a stop loss, you need to be guided by the support and resistance levels. And set a stop loss below the support level if you open a long order and, accordingly, above the resistance level if you open a short order. If you set a stop loss at 10%, ignoring the support and resistance levels, then this strategy will lead to the loss of the deposit.

[doomloop]

A stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. For example, setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%.

I respect that you took the time to explain it but I don't know why people cannot google such simple things because creating a thread just to learn stop-loss is really tiring. If something unique is asked, I can understand that Google may not have enough information about that topic but stop-loss is a very basic aspect of trading.

I saw most of the trader that are using stop loss, and it is a good step, or even we can say as a good habit to use stop loss while trading, It helps traders a lot because it only only make your loss at a stage corresponding to zero but it also give you a step for further more trading, That you didn't thing that it can also happen.

It was hard to understand what you were trying to say but after reading the comment 3-4 times, I have an idea what you mean. Actually stop-loss saves you from potential zero but it always takes away chances of recovery. I am not against stop-loss but facts are facts.

[Shasha80]

stop loss aims to put the brakes on your losses so that they are not excessive and not to avoid losses. In a trade anywhere, whether it's stocks or crypto, nothing is perfect, my friend. Everything is full of big risks and you already know what the risk is, namely losses and it's good that you can profit from trading.

Some people really misunderstand about stop-losses, they think using stop-losses will prevent them from losing. Even though every time we trade,
we must experience losses, but we can minimize the losses we experience by using stop-losses. Moreover, trading crypto with volatile prices has
a very high risk. So if trading without using stop-loss, most likely we will lose all the capital we have. So stop-losses must be used if we want to
trade crypto.

[Ruvi2000sew]

There is no such thing as a stop loss that guarantees no loss. Using a stop loss is to avoid losing more money, it means cutting your losses early to avoid costly losses. If you don't want to lose money, it's much better not to trade in the first place. You should be aware that losses will occur at some time, it's unavoidable, and only stop loss can help you.

[Rigon]

Stop Loss in Cryptocurrency Trading The function below is a stop loss function to cover your elasticity when you go to trade Non.

From this place if you think I will keep with the Stop Loss Prize then you can keep with. If the market goes to that place, it will become your automatic sale. So stop loss is vital for trading.

[tvplus006]

Stop Loss in Cryptocurrency Trading The function below is a stop loss function to cover your elasticity when you go to trade Non...

If you are constantly in front of the terminal, it is better to close the payment orders manually, after the price of the coin is fixed below the support level. Because very often there is a situation in the market when the price drops below the support level and then returns to its original value. In this case, you will lose your money using a stop loss. The use of stop loss is mandatory for margin trading, when you can not directly accompany the transaction.

[beerlover]

I have been in trading for some time now and as I become more experienced in trading; I discover some terms in trading that have captured my interest, as these terms help me gain knowledge to maximize profits and minimize loss.

One among them is the (stop loss feature) some exchanges have developed this feature to help traders set limits on their trading to help put a hold on trading once a certain price is reached, but again most traders still run into losses because they inability to use this tool effectively.

That brings me down to my question, what is the best way to apply the stop loss features that will guarantee zero loss, and which exchange has the best and easy-to-use live trading features.

Ever since stop loss became a known thing, everyone is making this to be the greatest invention since slice bread. I mean I get it, stop loss is good if you are not going to be online and you are worried that it will drop, however it is not as awesome as everyone makes it out to be. First of all unless you are already in big profit, the moment you are in a loss and stop loss makes you sell, that means you are going to end up losing a ton of money AND need to recover that loss somehow, but if you kept it and waited for it to go back up then you could have profited from it as well.

I do not get the whole shebang about the stop loss made by people, it is not something that is incredibly difficult, it is something that is expected and everyone should be used to it by now. In any case, stop loss is good, it is decent, but it is not really awesome, it is risky when you use it wrongfully.

[jossiel]

From this place if you think I will keep with the Stop Loss Prize then you can keep with. If the market goes to that place, it will become your automatic sale. So stop loss is vital for trading.

It is vital.

Because it will save your trades from doing so and can prolong your stay in the exchanges if you're good at stopping your losses. Traders tend to do that to avoid losing big.

And at the same time to recover some and continue.

[Rruchi man]

stop loss aims to put the brakes on your losses so that they are not excessive and not to avoid losses...

For the purpose of clarity, can someone please explain in layman's term the difference between a stop loss order and a limit order. I have read a lot about the differences online, but it is still not very clear to me. If you also make use of "limit order" please explain how you make use of it in your trading.

[Hobo66]

Stop loss is a trading instrument. If an investor wants to prevent huge loss in trading, then they set a stop loss. It is most commonly used in Binance. If a person set stop loss, then coin will automatically sell before the certain value  reach and an investor will not face any loss in trading.

[checkmatesir]

Whenever their is stop loss it seems that something that prevents someone from destruction as we can see from the word loss. So, it is clearly mentioned their that stop loss is a tool through which we can prevent ourselves from further loss and it is used by many top traders and can be easily obtainable in binance.

[LUCKMCFLY]

stop loss aims to put the brakes on your losses so that they are not excessive and not to avoid losses...

For the purpose of clarity, can someone please explain in layman's term the difference between a stop loss order and a limit order. I have read a lot about the differences online, but it is still not very clear to me. If you also make use of "limit order" please explain how you make use of it in your trading.

I understand that the Stop Limit is for when it reaches a certain price level the order begins to fill and when it is completed it is executed, the difference is that when only stop Loss is used, sometimes it does not take it when it touches the level of prices, especially when there are very fast movements, they are only taken when going to the Market, I really always use Stop Limit to protect myself, this happens very often in binance, when you are in Bitmex you have to be very careful because sometimes it is not taken the Stop Loss, because the order has not been filled, that is the way I understand it.

[bitcoinst]

Stoploss can save your deposit, or it can prevent you from making money.
For beginners, I would recommend using a stop 100% of the time, especially if they trade altcoins, there, as it seems to me, there is less manipulation by whales to knock out stop losses.

[BruceLee98]

Stop-loss is an advance order to sell an asset when it reaches a particular price point. It is used to limit loss or gain in a trade. The concept can be used for short-term as well as long-term trading. This is an automatic order that an investor places in a trade. Stop-loss is also known as ‘stop order’ or ‘stop-market order’. By placing a stop-loss order, the investor instructs the broker/agent to sell a security when it reaches a pre-set price limit.The stop loss order helps to protect your capital from the market and also plays a very important role in risk management. Successful traders always adivce a good use of stop loss

[cryp24x]

In my experienced and implementation into my personal strategy, I only used stop loss if I am going to sleep, I will set it up of the price where I want to lose, if ever my sell wall set up suddenly down its price. At least in that way I can able to control or maximize my losses through using this tools anyway. And its very effective actually.

[Finestream]

Whenever their is stop loss it seems that something that prevents someone from destruction as we can see from the word loss. So, it is clearly mentioned their that stop loss is a tool through which we can prevent ourselves from further loss and it is used by many top traders and can be easily obtainable in binance.

Stop loss will only be effective if you can follow it because most of the time, traders tend to be more greedy and forgot about setting stop loss when in fact it's a very helpful tool. Well, stop loss is a trading tool designed to limit the maximum loss of a trade by automatically liquidating assets once the market price reaches a specified value. There is no way that you can't experience losses in trading because even if you use stop loss alone, it only means that you are in a state of loss already. And yes, binance could be a perfect choice for trading crypto exchange.

[pelumi20]

Stop loss is a feature on trading exchanges or platform that enables the trader to set a price or range that he/she is not willing to lose more than the loss already incurred, so once the trade goes against him/her till the level of the stop loss, the exchange automatically closes the trade on their behalf. Unlike what you said, stop loss is not used to avoid loss, it is only used to minimize the extent of the loss.

[Shenzou]

The stop loss feature is made with some probelms for a reason and the zero loss idea does not exist, otherwise all the exchanges would be closed right now , because that is how they make their money, there are a lot of way that you can set up a stop moss in a way that you get the most profit if the price rebounds and minimize the loses if the price goes the other way around, it is really that simple and only requires you to know the limits of the market.

[Aurorra]

Trading risks in the crypto market are very high, and stop loss is a very important part of trading.
Setting a stop loss in the transaction can manage the loss in the transaction and minimize the loss. It can also protect funds from market fluctuations and prevent the loss of all funds.