What is stop loss and how it works

[Guljan78666]

Stop loss is very helpful  tool in trading. If you can  use this tool you can keep  safe your trade/money from a big loss. Normally stoploss use for this if market can play against you. You can safe your trade from big loss. And take entry in down.you can use stoploss at 5 to 10% from your buying price. because market is very volitile.if you interested how to use proper stoploss you can see vedios on YouTube about this useful tool.as my experience you can learn fast then you can start trading because without knowledge you can loss you money.

[ChrisPop]

"I have been in trading for some time now" - you're kidding, right?

You can't be "in trading" and don't know what is a stop-loss. I can't conceive trading with at least a mental stop-loss, an area you know your trade idea has been invalidated (you are wrong in your interpretation of the market). IMO stop-losses should be an essential tool for any trader. You can't know what all the market participants are pursuing with their positions at any point in time so it is only logically that you have a way to exit your position. If not, your loss would just get bigger and bigger.

[Mkmanik]

as these terms help me gain knowledge to maximize profits and minimize loss.

Proper risk management will help you to maximize profits and minimize loss.

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.

stop-loss features that will guarantee zero loss,!! Did you know the full meaning of Stop loss? Before posting here you need to google about stop loss. Stoploss means a trader is ok to lose for the gains. If your trade goes wrong you can easily cut the loss and out from the position. So you have to lose some buck here, With a stop loss, you also need to know risk management. However, Read this article for more information about stop loss: https://www.investopedia.com/terms/s/stop-lossorder.asp

[sulendra12]

That brings me down to my question, what is the best way to apply the stop loss features that will guarantee zero loss

Zero loss and stop loss are two different stuff and there is no "guaranteed" thing in terms of investment matter. You can't call that zero loss either because you already lost something at the process of doing the investment in regards of time, internet and your health(if you force to do so)

, and which exchange has the best and easy-to-use live trading features.

I thought you were a experienced trader, may I know which exchanges you are using right now? Most of the exchanges right now are so "easy to use" right now in terms of User Experience matter (UX)

[awik p]

In placing stoploss, of course, don't get too close to the current market movement, so that we can provide room for the market to work. many do it by placing a stop loss close to the market movement, so there are many events when the stop loss is touched, after that the market goes up again. but that's the kind of risk in trading. therefore we strive to always place a stop loss on every trade, when we cannot monitor the market then if there is an analysis error, we will exit the transaction when the candle touches the stop loss, thereby reducing losses

[jossiel]

Stop loss is an efffective feature of finance max through which you can be safe from the big loss even we can't say that it can prevent you from a small loss or even zero loss but at a situation it is beneficial for the users. Always try to point stop loss whenever you don't know much about the coin price.

He doesn't know how to apply it and when it shall be applied.

Well, it should be done accordingly when he's trading and that's why some traders are asking how to apply it because they don't know how to. But they want a guarantee of zero loss? that's impossible.

[palle11]

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.

what is the best way to apply the stop loss features that will guarantee zero loss,

Reading your post, I think you don't have a clear knowledge about what stop loss is. Stop loss as the name is, is to stop your trade from further losses. It means you activate an amount of loss you want to incur in a particular trade order.. So when you enter that trade, you already had it in mind that you have lost that portion of money in your account to that trade, or it means you are staking that part of your money to the profit you are gunning for which is your (Take profit).

There are no best way to apply stop loss. Understand that you apply it so that your losses will not run out your deposit.

Trading is for profit or lose. You activate Stop loss to reduce your risk of losses against profit. Once you enter a trade, you either lose or profit , there are no short cut on that but stop loss is good because you have more chances to make another trade after you lose initial order.

[lablab03]

You can use it to prevent losses from the volatility of the market, like for example if you place order and the candles is showing a tends to make false break out then you can execute stop loss to close your order once it happen. actually it's a good idea to use stop loss very often not when needed only because crypto market is so unpredictable so it always good to have back up every time you trade so that your money is always safe.. Coz for me it's the most important tools especially if you don't have so much time to monitor the performance of the coin you preferred to trade..

[BuNga_cute]

Stop loss is an efffective feature of finance max through which you can be safe from the big loss even we can't say that it can prevent you from a small loss or even zero loss but at a situation it is beneficial for the users. Always try to point stop loss whenever you don't know much about the coin price.

He doesn't know how to apply it and when it shall be applied.

Well, it should be done accordingly when he's trading and that's why some traders are asking how to apply it because they don't know how to. But they want a guarantee of zero loss? that's impossible.

There are still many people who misunderstand about stop-losses, they think they can avoid losses if they use the stop-loss feature when trading.
Even though we will all experience losses when trading, even professional traders must have experienced losses. Since crypto trading at highly
volatile prices is almost impossible not to lose, and the stop-loss feature serves to minimize the losses we experience. So when the market
suddenly dumps, we can stop trading with the stop-loss feature, to avoid bigger losses.

[jossiel]

Stop loss is an efffective feature of finance max through which you can be safe from the big loss even we can't say that it can prevent you from a small loss or even zero loss but at a situation it is beneficial for the users. Always try to point stop loss whenever you don't know much about the coin price.

He doesn't know how to apply it and when it shall be applied.

Well, it should be done accordingly when he's trading and that's why some traders are asking how to apply it because they don't know how to. But they want a guarantee of zero loss? that's impossible.

There are still many people who misunderstand about stop-losses, they think they can avoid losses if they use the stop-loss feature when trading.
Even though we will all experience losses when trading, even professional traders must have experienced losses. Since crypto trading at highly
volatile prices is almost impossible not to lose, and the stop-loss feature serves to minimize the losses we experience. So when the market
suddenly dumps, we can stop trading with the stop-loss feature, to avoid bigger losses.

They can't avoid losses.

But they can minimize the big loss that is about to come and that's thanks to stopping loss. There is no guarantee and assured thing in stop-loss that it will give you zero percent in the loss.

You look at how much you've saved when you do that and you'll realize that it's effective when you don't know when to sell at losses.

[Twinscoin2017]

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.

Stop loss is a limitation of the particular losses, if you think the losses is becoming very big you can cut it off or stop that loss. You need to set a limit the to avoid very big loss that is what we called stop loss. Setting a limit is very important not only when price is falling we also need to set a limit when the price is rising to have an assurance of gaining.

[maxreish]

There is no zero loss guarantee. We are in a crypto market where the market price is unstable. That is why there is a "stop loss" feature to save you from totally liquidation. There are actually a lot of videos online that explains how those stop loss works. You may try to watch this .

That may also helps you how to use it in a right way as we should always integrate in every trade we make.

[adaseb]

Most new traders don't like using stop losses because they always get hit and usually reverse right after. So alot of new traders just don't use them at all. Because sometimes it always goes to a loss and then break-even and then profit. The issue with not using a stop is you will eventually become a bad holder and long term investor and its never smart. Look at how bad some alts did hurting bear markets where they hit 99% loss or so. Hence you should always use a stop, if it gets hit then just widen it but always use a stop.

Most scalpers know where people put their stops and thats where they time their entries and exits. Usually at the daily high or low, or at some retested old support/resistance area and usually near round numbers like $40000 or $50000 or so. SO if you want to take advantage you should use this knowledge in your trading and make some profit out of it.

[justdimin]

The issue with not using a stop is you will eventually become a bad holder and long term investor and its never smart. Look at how bad some alts did hurting bear markets where they hit 99% loss or so. Hence you should always use a stop, if it gets hit then just widen it but always use a stop.

Bad holder? might be an appropriate term to address the consequence of not making use of stoploss levels. In my view, those bad holders will eventually lose all other opportunities to cover the losses if they have opted to exit at stoploss levels. This way, they might have saved both time and money. If you consider time is another important criteria for your trading then you must go for stoploss levels if you are trading any alt or shorting bitcoins.

there is a "stop loss" feature to save you from totally liquidation.

Yeah to save all the traders regardless of their skill levels. I mean stoploss is important for both pro traders and  naive traders. But, people start ignoring it when they gain experiences which must be a the simple reason why loss seems an inevitable event in trading.

[BuNga_cute]

There are still many people who misunderstand about stop-losses, they think they can avoid losses if they use the stop-loss feature when trading.
Even though we will all experience losses when trading, even professional traders must have experienced losses. Since crypto trading at highly
volatile prices is almost impossible not to lose, and the stop-loss feature serves to minimize the losses we experience. So when the market
suddenly dumps, we can stop trading with the stop-loss feature, to avoid bigger losses.

They can't avoid losses.

But they can minimize the big loss that is about to come and that's thanks to stopping loss. There is no guarantee and assured thing in stop-loss that it will give you zero percent in the loss.

You look at how much you've saved when you do that and you'll realize that it's effective when you don't know when to sell at losses.

Therefore, those who intend to trade crypto, must be prepared to accept losses, because it's a fact that everyone who trades crypto must
experience losses. So what we need to do is not to avoid losses, but try to minimize the losses suffered. Actually there are many ways for us
to minimize losses, and the most popular is to use the stop-loss feature. Based on my experience using the stop-loss feature, I managed to
save some of the capital I had several times during the market dump. It is not easy to use the stop-loss feature, because we must have
a strong mentality to accept losses. It takes practice so that we can use the stop-loss feature properly.

[jaberwock]

It is not easy to use the stop-loss feature, because we must have a strong mentality to accept losses. It takes practice so that we can use the stop-loss feature properly.

I guess you are taking stoploss as a very big thing while trading but you must treat it like just as part of your trading activities so that you will easily get used to it. Moreover, when you are good at your technical analysis then only very rarely alone you may hit stoploss so you can easily accept your losses and move on to another trade to recover your losses and at the same time if you are not good in technical things and you may happen to hit stoploss more often then you must need to prepare yourself to use stoploss for your all trades.

[wahyu wida]

It is not easy to use the stop-loss feature, because we must have a strong mentality to accept losses. It takes practice so that we can use the stop-loss feature properly.

I guess you are taking stoploss as a very big thing while trading but you must treat it like just as part of your trading activities so that you will easily get used to it. Moreover, when you are good at your technical analysis then only very rarely alone you may hit stoploss so you can easily accept your losses and move on to another trade to recover your losses and at the same time if you are not good in technical things and you may happen to hit stoploss more often then you must need to prepare yourself to use stoploss for your all trades.

although we are good at analyzing and rarely about stop losses, but the market is not always as tame as we think. therefore to always be vigilant even though we are sure that our transaction will succeed in hitting the target. Many people feel smart so they ignore the use of stoplos, when they are lulled into one transaction, they will experience big losses. then we must be able to act normal

[TheGreatPython]

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.

I don’t think there is any stop loss that stops your trade from making any loss at all. There is still going to be loss, just that you now have a tool that can help you to shorten that loss. That’s the actual work of the stop loss tool. And when you’re making use of the stop loss tool you’re the one that sets up the order it takes. So, it is working according to your order. Let’s say that you decide to set it to stop loss at -2%, the stop loss is going to activate once the market goes below that 2% and save you from further loss. If you set it at 2%, that doesn’t mean it’s going to stop exactly at 2%, it’s going to stop anywhere around that.

[Levero]

Risk control is the prerequisite for any investment, and strict stop loss is the core content of risk control. Stop loss is used to protect the safety of investors' funds and reduce investment risks.
The specific stop loss method should be combined with the specific trading system. Blind stop loss and trading that do not understand stop loss will also fail.

[Nigrinn]

Indeed, the correct work with stop-floss gives a very good opportunity to control risks and avoid mistakes.