What is stop loss and how it works

[Flexystar]

Stop-loss as discussed by various posters here, is good technique to trade if you are too busy person to look after your trades all the time. However, I feel that    sometimes we need to be in alert mode so that we can earn more profits. I agree that stop-loss could be great to overcome the greed, stop the trade on time and etc but sometime playing the trade with full flexibility could be overwhelming. The trade might go below let's say 5-10% but what if it goes fully bullish and gives you returns more than 10-20%? There are so many coins and open market to trade with such capacity and I believe that it's worth noticing that stop-loss could sometime take you on the wrong turn too.

[john_nautica]

You can't put a stop loss that guarantee zero loss. Using a stop loss is to avoid losing more it means cutting your losses early to avoid expensive losses, if you don't want to lose it's much better not to enter a trade in the first place you should know that at some point you will experience losses along the way it's unavoidable and only stop loss can help you.

[SquallLeonhart]

I agree that stop-loss could be great to overcome the greed, stop the trade on time and etc but sometime playing the trade with full flexibility could be overwhelming.

Stop loss to overcome the greediness? I guess it is something new that I have never come across before. Do you mean exiting after some profits is also kind of stoploss level? Because, we do call it like target level. Only when market is going as per our prediction we become greed and when market is moving down against us then we may usually get panic.

if you don't want to lose it's much better not to enter a trade in the first place

If a trader is not ready to lose then they should not remain as a trader at all. Only those people who are ready to risk  and ready to lose (at least at calculated manner), should become trader and remain trader.

[aquafinewater]

I am also like stop loss this function save your fund for big losses and you can also get profit uses stop loss every exchange have different rule to put stop loss but most uses method are first put you close entery then enter your sell price when price come to your sell price your order was completed .

[Clavulanic]

Zero losses actually exist if you apply shift stop loss. You may ask how do I mean. Let me explain let's assume you entered a trade and you have started seeing profit and you still want to hold on to your position because your analysis is still in the direction of your profit you can shift your stop loss either to your entry point or above your entry point that way you will exit with a zero loss if the trade goes against you

Stop loss can't keep zero loss, I don't know how you explain it. We all know how volatile top coins are, setting it close will just trigger the sale as soon as small shift, which can deny the immediate pump for the small and short term dip.

If you mean it so well, stop loss was just an idea of what you can afford to loss as you bid for last cheap price for what you're going to sell. Eventually, you'll able to prevent certain loss when you have the opportunity to halt when price setting will not be put into closure of bidding. More importantly, you knew where to take actions during sudden price spikes because that's the time you'll be setting a best price in order to recover the loses you had.

[calya]

as a part of risk management . stop loss sometime need to set in our trades, it will work well in future trades which is have huge risk if we didnt set it. using leverage was not adviced if we didnt have good result in our spot trades. So when we use stop loss in future trade meanwhile our skills not enough, this SL will easily hit. if this condition happen many time , i am believe our balance will slowly decrease. 

[Tygomi]

The ability to use stop-loss correctly is really a very auxiliary process during trading.

[feelideb]

Stop- loss order is a tool  you can use in centralized cryptocurrency exchange  to sell or buy  a  coin when it reaches a specific price! This tool is design to limit investors's losses in an open position! There is no guarantee however wether the tool will work in a very high volatility  market! Stop-loss should be able to keep your losses to bearest minimum if it set according to percentage losses you  are able to afford!

[fullhdpixel]

There is no guarantee however wether the tool will work in a very high volatility  market! Stop-loss should be able to keep your losses to bearest minimum if it set according to percentage losses you  are able to afford!

You refer about prices jumping and skipping the stoploss levels? That might have possibilities to happen but different exchanges are having different provisions to overcome that and the maximum solution could be triggering the stoploss order at next available prices.

If you go for stoploss at your own affordable levels then market may eat your stoploss order then may go recovering toward your target levels. Hence your stoploss levels should be as your technical levels or simply at trend changing points. So, that market will not recover and enter into the opposite direction than your predictions.

[BuNga_cute]

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.

Therefore, as traders, we should master technical analysis, it will really help us in predicting price movements in the market. So it will get us closer
to profit, most successful traders must have good technical analysis skills. Because of that we get to know how the crypto world, which is easier to
accept losses and that will make stop-losses a normal part of trading activity. Since we can quickly recover from any loss we experience, it can all be
gained through study and practice. So don't be lazy to learn trading and practice, in order to master technical analysis.

[crzy]

Stop- loss order is a tool  you can use in centralized cryptocurrency exchange  to sell or buy  a  coin when it reaches a specific price! This tool is design to limit investors's losses in an open position! There is no guarantee however wether the tool will work in a very high volatility  market! Stop-loss should be able to keep your losses to bearest minimum if it set according to percentage losses you  are able to afford!

You can do this manually to lessen the possibility of losing more money, stop loss was created for you not to go beyond that level so if the price hits your stop loss level, you have to sell right away and do buy something that you can possibly earn to get back what you have lost. Stop loss is very helpful, don’t forget to set up your stop loss price, this can be a big help.

[tvplus006]

Stop- loss order is a tool  you can use in centralized cryptocurrency exchange  to sell or buy  a  coin when it reaches a specific price! This tool is design to limit investors's losses in an open position! There is no guarantee however wether the tool will work in a very high volatility  market! Stop-loss should be able to keep your losses to bearest minimum if it set according to percentage losses you  are able to afford!

You can do this manually to lessen the possibility of losing more money, stop loss was created for you not to go beyond that level so if the price hits your stop loss level, you have to sell right away and do buy something that you can possibly earn to get back what you have lost. Stop loss is very helpful, don’t forget to set up your stop loss price, this can be a big help.

Many traders do not use a stop loss and close unprofitable positions manually, at the moment when the price falls below the support level, and then returns to it for testing. But this method of closing unprofitable positions can be used if the trader is constantly in front of the terminal. and it can track price changes in a timely manner.

[carlfebz2]

Stop- loss order is a tool  you can use in centralized cryptocurrency exchange  to sell or buy  a  coin when it reaches a specific price! This tool is design to limit investors's losses in an open position! There is no guarantee however wether the tool will work in a very high volatility  market! Stop-loss should be able to keep your losses to bearest minimum if it set according to percentage losses you  are able to afford!

You can do this manually to lessen the possibility of losing more money, stop loss was created for you not to go beyond that level so if the price hits your stop loss level, you have to sell right away and do buy something that you can possibly earn to get back what you have lost. Stop loss is very helpful, don’t forget to set up your stop loss price, this can be a big help.

Many traders do not use a stop loss and close unprofitable positions manually, at the moment when the price falls below the support level, and then returns to it for testing. But this method of closing unprofitable positions can be used if the trader is constantly in front of the terminal. and it can track price changes in a timely manner.

Even myself wouldnt really see for it to be that relevant specially when you do make shorter or active trades because it would really be just easily to be tripped or eaten if price volatility
would really be that high but depending on how much you had set or what time frame you've been engaging.

I do only see this to be relevant for 1d TF with price swing type of trading which had done by some people but most of the time it isnt really that been used since we do have
different takings and the way of using SL's.

It will really from person to person on how it would be used and on when it would be used.

[CryptopreneurBrainboss]

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.

For all exchanges I have used, I think binance has been the best in my opinion, their user interface are quite user friendly and easily understandable. Binance also has the stop loss features so you won't be missing if you decide to use the exchange. You have to be willing to give up some sensitive information though through KYC procedures if you want to enjoy all, that the exchange has to offer because if you verify your account you enjoy others privilege that the average users won't although you can use the exchange without verification but your withdrawal is limited.

If you want to get the best out of stop loss feature like the guarantee zero loss you speak off, you have to monitor your trade to take advantage of the opportunity it offers when you're in profit. Initially the stop loss can be updated with values a little bit lower than your entry point bit after been in some gains, you should adjust that stop loss to values above your entry price.

With this strategy, your stop loss now becomes your take profit price in the sense that, you'll always be in the trades unless something was to happen and the price falk ti your stop loss price which the market will kick you out to protect you but instead of it been in small fractions of loss, you'll be in profit since you were constantly adjusting your stop loss price to higher values as the profits keep coming in and turning your stop loss to take profit order..

[Slow death]

I use STOP - Loss when I buy at the support and there is a trend reversal, for example if a certain asset is falling a lot and arrives at the support and then some trend reversal pattern appears, I buy and place a stop - loss. you can see videos of how to correctly place stop - loss, it is complicated for someone in a forum to show their trade and stop - loss strategy

[Yatsan]

Stop loss is when you are limiting your trading into a specific point to minimize the amount of loss you can acquire while you are doing trading so that instead of total loss, you can still have some of your funds left with you. By this way you can somehow have a control within your funds not to exceed its limit leaving you with nothing. Stop loss feature is really a helpful one specially for those who are just starting their journey with trading and even veterans for you are having a helping tool to minimize the loss effect in any of your trading to save up your money wisely.

[lalabotax]

In my opinion, stop loss means that we can manage our loss and minimize our loss. Many people set this feature in certain exchanges in order to manage the funds to lose and change into something better in other coins again. Sometimes, we are not a holder so we must make the money to cycle always, trade them and get the profits. Although it needs to stop loss, it doesn't mean that we will always lose our money. But for this stop loss, we may be able to change the money to buy and trade other coins and possibly to get profits from another trading.

[Silberman]

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.

That is definitely a problem, you have expectations that are out of line with the reality, stop losses as the name implies is a tool that help you to limit your losses, but it is never going to help you to eliminate your losses completely, it does not mater how good a trader you believe you are, you are going to lose money in the markets, the difference is that the good traders limit their losses so they can keep trading and make good trades while newbies despite knowing this ignore it and then lose so much money that regardless of their level of skill it will be impossible to recover from such losses.

[Tahsin Kabir Kollol]

Stop Loss is an important tool of trading and it has gained a lot of popularity in modern trading. You can avoid big losses by using stop loss, but in all cases, zero loss is not reasonable. This is because stop loss is usually used in the Side-way market and is used to hold up to a certain loss according to market analysis after purchase. However, if the market is somewhat positive after taking the trade and if you then use stop loss up to your purchase price, then there is a possibility of zero loss. However, in the case of trading, a trader takes the trade very lightly and uses the Stop Loss tool to try to reduce the risk of loss due to the reverse behavior of the trading in general.

[goldade]

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 an amazing risk management feature that helps to reduce the amount of losses a trader would suffer if he uses it. Stop-loss is very important because it helps a trader get out of a trade that goes in the opposite direction of the trader's prediction, that would otherwise have resulted in liquidation of assets.
However, many traders don't use because they strongly belive in their ability to make accurate predictions. The market is very volatile and is not controlled by one person which means that a trader cannot be accurate with his predictions all of the time. And this reiterate the importance of using Stop-loss as a trader.