What is stop loss and how it works

[Lordshiva]

Stop-loss can be defined as 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.
It means investor instructs in advance to sell the coin when it reaches pre-set limit so investor can limit its loss.

[qory]

Stop loss is commonly used for every trader, it is used whenever you want to limit your loss if the price will keep going down. You have to set the price and if the price goes down continuously to the point that it reaches the value you have settled then it will automatically be sold. You can use stop-loss if you are going to sleep so if ever the price crash you can still save your investment.

Yes it's really a life saver at one time I bought a new coin that pumps and dumps to around 70% luckily with the stop loss I managed only to lose around 10% only because of the stop loss. You can try to take a look simple tutorial on youtube on how does stop loss work, it was really useful.

[Xampeuu]

Stop loss is commonly used for every trader, it is used whenever you want to limit your loss if the price will keep going down. You have to set the price and if the price goes down continuously to the point that it reaches the value you have settled then it will automatically be sold. You can use stop-loss if you are going to sleep so if ever the price crash you can still save your investment.

Yes it's really a life saver at one time I bought a new coin that pumps and dumps to around 70% luckily with the stop loss I managed only to lose around 10% only because of the stop loss. You can try to take a look simple tutorial on youtube on how does stop loss work, it was really useful.

stoploss can help us from bigger losses. maybe as a picture like this. at this time the market is not running according to our analysis, and we set a stop loss at a certain price with a loss rate of 10%, so that if the market touches that price, our transaction will automatically close itself. so that if the price continues to fall, then we don't lose more money

[LUCKMCFLY]

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.

Many people when they place the Stop Loss they move it since the operation is on the favorable path, I think it happens in the exchanges that only have to place "Stop Loss" or "Take Profit", although there are exchanges that allow you to have both.

There were many times when I used the Stop Loss on Bitmex and the Stop Loss did not stop the transaction, and I kept losing, and then I realized that I had to put it to start closing long before I hit the price, those are details. not. I knew it, but it happened to me because I had not used the tool with play money, if I had used the tool with play money I learn to know the protocols, in Bitmex if you do not react quickly you can lose almost everything, I think that for these tools you need to practice it previously so you don't risk losing money for mistakes like that.

[LongStand]

When traders start a trade, they usually put a stop-loss. Stop-loss are first intended to limit the amount of money that can be lost in a trade. A stop-loss order is a request to a broker to purchase or sell a specific stock at a specific price once it hits that price. A stop-loss order is used to keep an investor's loss on a security position to a minimum. Setting a stop-loss order 10% below the price at which you bought the stock, for example, will restrict your loss to 10%.

[ajochems]

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.

Holding is only option to avoid of loss.Because most people losing daily by fake analysis and expected x2 of the investment. If you get 20$ as a profit from the investment of 230 dollars. You should be very happy with that.Because it's just 10 percentage of profit. You should agree of 5-10 percentage profit.

[jossiel]

actually stoploss does not 100% guarantee our assets are safe.  but at least it can be a benchmark for the safe limit of our assets so that there will be no bigger losses.  I think stop loss should be learned because not everyone or traders are successful if they use stop loss

Why you need to have a guarantee to protect your assets to be safe?

It's not the job of stop loss. From the words itself, that does the job of stop and that's to prevent you taking more losses than the usual you gain when you trade.

[trannguyenbtc]

A stop-loss order—also known as a stop order—is a type of computer-activated, advanced trade tool that most brokers allow. The order specifies that an investor wants to execute a trade for a given stock, but only if a specified price level is reached during trading.
Stop-loss orders differ from a conventional market order. With market orders, the investor specifies that they wish to trade a given number of shares of a stock at the current market-clearing price. Using a market order, the investor cannot specify the execution price. However, the stop-loss allows an investor-specified limit price.

[rhodelmabanal]

Stop loss is an strategy to minimize the losses that you possibly get in trading, it is something like setting a limit on every trade or holdings, if you don't set a limit you will possibly loss a big amount when the price of the coin that you invested drop so hard, that is why stop loss is very important.

[teosanru]

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 doesn't mean zero loss, it means cutting your loss just up to a pre-calculated mark, for example, if you buy something at $100, you expect it to move to $120 but fear that it might even tumble down to $80, but you are sure that it would get to $80 only if it breaks the support available at $95, now what an intelligent trader would do here is that he will put a stop loss at around $94, it can be set following these steps:
1. First you have to enter a trigger price, it's obvious if you directly put a limit selling order of $94 the transaction would get executed immediately, so we need to set up a trigger price reaching which the order will go into the order book, we set it to $94.5.
2. Now I'll put my selling price a bit below(Advisable) the stop loss trigger price, it's done to ensure that your order reaches the order book in time because in times of quick sell of even your stop-loss doesn't get hit many times. So either use a market stop or put the limit price half a dollar below the trigger.

You are done, if your coin goes to 95 you'll be sold with a loss of just $5 which could have been $20, and if it goes up you are just making profits no losses.

[CryptopreneurBrainboss]

actually stoploss does not 100% guarantee our assets are safe.  but at least it can be a benchmark for the safe limit of our assets so that there will be no bigger losses.  I think stop loss should be learned because not everyone or traders are successful if they use stop loss

That's because they're yet to understand how to effectively use the stop loss feature. Lets assume there's a general conception of Bitcoin following to a certain price and you're current on that trade. Setting your stop loss at exactly that price would be deadly. There's huge manipulations ongoing by whales in the cryptocurency market and they seem not to not care what happens to others while they win.

The whales can easily manipulate a trade making it fall below the average stop loss which is the last well know support of Bitcoin just to eat up all the stop loss orders at that price. Yours should always be some safe zone form thus manipulation.

Stop loss is a very vital to have a successful traders unless you're an active traders constantly monitoring the market which i won't advice anymore to undergo such stress when you can make the automated system handle this for you plus the health issue that such practice will result to.

[Issa56]

Seriously I believe if you are into future trading I think stop loose is very important because stop lose always cut your lost it will definitely reduce the money you are going to lose incase if market don't really go as you want and one of the best exchange which I really believe there stop lose is binance exchange. Have been using the exchange for few years now and they have never disappointed me before.

[Silberman]

actually stoploss does not 100% guarantee our assets are safe.  but at least it can be a benchmark for the safe limit of our assets so that there will be no bigger losses.  I think stop loss should be learned because not everyone or traders are successful if they use stop loss

What the stop loss really does is that it gives a limit to the amount of money we can lose in a single trade and if we pair this up with good money management skills then your losses are going to be limited in scope and size and that is critical if we are to become successful traders, in fact in some studies that I have seen having good money management skills and being able to use a stop order the right way has been directly linked to winning traders as two of the most important aspects that you need to master if you are to become a good trader.

[Pethanou]

As for me, the use of stop words should be mandatory for beginners, because they have no experience and practice.

[carrigan]

Stop loss is an order or order to close a position that is useful for limiting losses within a certain value. Or it can also be said that Stop Loss is the lowest price limit value that is determined to limit losses. When the price movement touches this value, the system will automatically close the order or position. By using this Stop loss, traders are able to limit unwanted losses, if there is a loss that is too deep, the trader can limit the losses that have been determined. Setting a stop loss is much more important than setting a profit target.

[Cherylstar86]

Stop loss is an strategy to minimize the losses that you possibly get in trading, it is something like setting a limit on every trade or holdings, if you don't set a limit you will possibly loss a big amount when the price of the coin that you invested drop so hard, that is why stop loss is very important.

Indeed. Stop loss will help you minimize losses or limiting losses within a certain value. It should be mandatory to all of the beginners because they have no experience and practice. Stop loss is such a life saver and is very important in trading. Maybe some of us have a different strategies in trading but Stop loss will help you to limit losses and earn higher as what you expected.

[Pasa32]

Stop loss gives benefits to most of the trader even i'm using it and most of the time it prevents me from further loss or even more loss. The top traders are also using stop loss to save themselves from a bigger loss. So, i prefer to every trader that they should use stop loss although we didn't know about the coins.

[LUCKMCFLY]

Stop loss is an order or order to close a position that is useful for limiting losses within a certain value. Or it can also be said that Stop Loss is the lowest price limit value that is determined to limit losses. When the price movement touches this value, the system will automatically close the order or position. By using this Stop loss, traders are able to limit unwanted losses, if there is a loss that is too deep, the trader can limit the losses that have been determined. Setting a stop loss is much more important than setting a profit target.

In fact there are many operators who use the stop loss to obtain profits, that is, they put a price established with their "Stop Loss", if the price touches it it does not matter, because the loss is assumed, but if the price goes in favor many traders move the stop loss higher taking advantage of the move in profit.

Of course this implies being stuck in the market all the time to move the stop loss, it is a strategy that will always be protected, this happens many times when the Exchange under which it is operated does not have the "Stop loss" in the same operation and the "Take Profit" this is something that usually happens there, however other more ambitious traders still having these options make a re-entry or take profits and continue without losing their position.

[BruceLee98]

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%.

[Karish2return]

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.