The psychology of stoploss

[michellee]

Using stop-loss or not will depend on how your analysis. If you think that the price will go down too deep, you can use a stop loss at a certain level so you can prevent the big loss. If you can monitor your trade, you can analyze more to find more info so you can determine to use stop loss or not. Stop-loss can be used based on the market situations, so with more analysis, that will be necessary to use stop loss or still analyze the market to see where the price will go.

It will always depend on that, I personally don't have stop loss level on Bitcoin because I know its more safe to hold on it than to sell it our of panic. Though I have a different approach on my trading activities, stop loss for me are very important in my short term trading, it allows me to minimize my losses and then look for other opportunity to buy. If there's no stop loss every time you trade, how can you know when to exit the market? for me this is very important in trading.

If that is about bitcoin trading, I prefer to hold than to sell like you. Besides that, when I buy bitcoin, I do not go all in so when the price is down a lot, I still have money and can buy more bitcoin. Maybe stop loss works in short-term trading such as hourly or daily trading as the price can move anywhere. Yes, stop loss is very important but that depends on how you trade. But sometimes, we are late to apply the stop loss so we only see a loss after selling the coin.

[bunglor]

I'm believing that many traders here don't like using stop loss and the reason is just within our first guess, they don't want the stoploss to take them out.
In my own situation , I also didn't like that idea of getting to loss to stoploss but my orientation have changed towards that because stop loss is better used than not to be used.  One benefit is your just loss a little part and you can carry on with your trade, after all trading is about profit and loss. This is a good mentality to succeed. If you are in the habit of readjusting your stoploss and take it further, you can stop that because the price can chase you there

For newbie traders and more experienced traders, I do also believe you having the dilemma of using or not using stoploss especially when it takes you out frequently but to such, the problem may be with your trading strategy and not stoploss.

So what is your challenge to using stoploss?

Stoploss was a safety net if anything happened in the market usually the market is really volatile and as a trader it is my responsibility to take care of my profit. The only challenge in stop-loss I'm thinking of is that when the market just dip to your stop loss and go back to its main trend that happened to me multiple times and of course bullish and bearish traps.

But stoploss was really simple but really effective tool in trading.

[tbct_mt2]

Stoploss was a safety net if anything happened in the market usually the market is really volatile and as a trader it is my responsibility to take care of my profit. The only challenge in stop-loss I'm thinking of is that when the market just dip to your stop loss and go back to its main trend that happened to me multiple times and of course bullish and bearish traps.

Stop loss order only works if the market does not crash too quickly and exchanges don't have technical or connection problems. If cascade effects occur too seriously with crashes, stop loss orders can not help.

You have to use another order, Stop limit order.
What is a stop limit order

But stoploss was really simple but really effective tool in trading.

Stop loss or other orders are simple if you understand it.

[molsewid]

Stoploss was a safety net if anything happened in the market usually the market is really volatile and as a trader it is my responsibility to take care of my profit. The only challenge in stop-loss I'm thinking of is that when the market just dip to your stop loss and go back to its main trend that happened to me multiple times and of course bullish and bearish traps.

But stoploss was really simple but really effective tool in trading.

In my early days as a trader I didn't know how to use the stoploss strategy like one of my worst case scenario was that the project was seem good at the start and I put an amount of money on the project but only few days past the market of the project begun to crash but I do hold on to the thought that the project could recover but ended up I'm losing my money. My friend suggested me to use the stoploss strategy to cut the future losses but I didn't listen to him and my money ended up halve the value has been lost. From that time on I do realize the importance of using the stop loss strategy.

[lovemycar]

The bottom line for my stop loss is 20% of the principal. Stop loss is the basic strategy of regular trading. In the final analysis, it is still desire. If you are greedy enough, I'm sorry, stop loss is not for you, and the one that suits you is Stud.

[palle11]

The bottom line for my stop loss is 20% of the principal. Stop loss is the basic strategy of regular trading. In the final analysis, it is still desire. If you are greedy enough, I'm sorry, stop loss is not for you, and the one that suits you is Stud.

Lol bro but 20% is way far too much for a stoploss on a single market order. It means you have just splitted your account into 5 places and what happens when you trade the 4th time and lose at a roll? Panic gets into you to trade the fifth time because of the fear of not coming out of it. I have traded with a lot spaced for stop loss because I was scared or didn't like my stop loss to take me out, I even extended and shifted it and yet the price takes me out.

Just identify the trend and if you go with it, you just need a tight stop loss incase of spike. I can suggest like a percent of your balance to stop loss and you see it is a scratch of your account that will be lost if it is against you. Good luck.

[Wexnident]

I completely removed the idea of profiting more tbh. I try to adjust my goals to what is realistic, one that I'm very much sure I can achieve in that single trade. Most stop losses I've done was to stop myself from losing against dips and that's it. I don't bother rebuying even when my stop loss gets triggered, I just wait and see what happens then proceed to determine if I should enter or not. It's a rather great tool to have tbh, it's just mostly up to your capabilities on whether it's actually used to its fullest.

[GreatArkansas]

(...)
So what is your challenge to using stoploss?

Having no risk management in trading will get you rekt. Stoploss is one of the best ways to have good risk management.
Think about your stop loss as your saviour, your superhero.
It's much better to lose 10% than losing 50% or more, or worst is liquidation (lost them all)

[sumant]

The psychology of stoploss is to prevent trader fund from big loss or not wait long months to recover. It is very important in trading to play safe and smart game. Without stoploss anything can happen to your trade. Crypto market is very volatile it can dump to any level. When you use stoploss you will out from trade and not getting in panic for many months.

[jaberwock]

For newbie traders and more experienced traders, I do also believe you having the dilemma of using or not using stoploss especially when it takes you out frequently but to such, the problem may be with your trading strategy and not stoploss.

Stop-loss is important when you’re being a trader. People have not been able to give me any good enough reason as to why they shouldn’t use stop-loss. People who don’t make use of stop-loss usually say it’s because they don’t want to miss the market quick comeback after a slight down movement which I think is not enough reason for you to not make use of a stop-loss when you’re trading.

Unless you’re going to be there watching your trade, if not then you’re meant to be using a stop-loss. There is a reason why these tools were made and they shouldn’t be neglected for anything, they can be helpful at times you least expected it to.

[palle11]

People have not been able to give me any good enough reason as to why they shouldn’t use stop-loss.

I will let you know that, it is simply because they don't want to lose with stoploss. This is the real reason and it is simple.

People who don’t make use of stop-loss usually say it’s because they don’t want to miss the market quick comeback after a slight down movement which I think is not enough reason for you to not make use of a stop-loss when you’re trading.

This excuse is funny. You can activate stoploss even after you have made trading, you can go back to the order and activate it but the problem is the market volatility can hit that order just immediately you went in .

Unless you’re going to be there watching your trade, if not then you’re meant to be using a stop-loss.

No that is a bad pratice. You may not be fast to executive the stoploss. Sometimes you have network challenges.

[Alisha FR]

Stop loss is part of risk management, but with various market manipulation issues, it makes me less confident in applying stop losses, in fact their effectiveness cannot run normally. Experienced traders do not make stop loss as the main management to minimize risk. And some of the other strategies they use are based on an analysis of how market forces tend to rise and also based on the laws of the market.

[Myleschetty]

Stop loss is part of risk management, but with various market manipulation issues, it makes me less confident in applying stop losses, in fact their effectiveness cannot run normally. Experienced traders do not make stop loss as the main management to minimize risk. And some of the other strategies they use are based on an analysis of how market forces tend to rise and also based on the laws of the market.

It is difficult to know if experience traders don't use stop loss as their main management to minimize risk because every trader have its strategy use in making a trading conclusion but I  don't like the stop loss idea but it is a good strategy a trader must put in place after study to understand the market possible trend.

[Slow death]

Stop - Loss is something very important, just see how the volatility of the crypto market is high, there are times when the price drop gets so high in just minutes and doesn't recover soon. that is why it is always important to use Stop - Loss. in my case, I only use it when I buy and put it next to the support, in case it falls below the support, I minimize the losses

[Fatunad]

Stoploss is just good when you are just making out some short trades or you do actively dealing with the price in the market but if its not then you would definitely not needing this.
You could eventually tell when you are on the situation where it is really that suitable for you to use or not but on that case then it would really be not much needed
so it does depend on you because you are the ones would really be able to tell if its significant for you or not.

[Viscore]

Stoploss is just good when you are just making out some short trades or you do actively dealing with the price in the market but if its not then you would definitely not needing this.
You could eventually tell when you are on the situation where it is really that suitable for you to use or not but on that case then it would really be not much needed
so it does depend on you because you are the ones would really be able to tell if its significant for you or not.

Well, its really up to us if we will use stoploss  or the other way around. Some active traders are not even using this because they are more on alerts that will give significant prices on the market. They know exactly when to buy and sell. But honestly, i still prefer to use stoploss because its a very helpful tool for us active traders that we can prevent from losing such a huge amount. If we think the prices are already not bearable for us, then maybe we should start setting stoploss.

[nur rochid]

Stoploss is just good when you are just making out some short trades or you do actively dealing with the price in the market but if its not then you would definitely not needing this.
You could eventually tell when you are on the situation where it is really that suitable for you to use or not but on that case then it would really be not much needed
so it does depend on you because you are the ones would really be able to tell if its significant for you or not.

Well, its really up to us if we will use stoploss  or the other way around. Some active traders are not even using this because they are more on alerts that will give significant prices on the market. They know exactly when to buy and sell. But honestly, i still prefer to use stoploss because its a very helpful tool for us active traders that we can prevent from losing such a huge amount. If we think the prices are already not bearable for us, then maybe we should start setting stoploss.

For professional traders whose job is trading, I think that even if they don't set a stop loss, of course they will use a manual cutloss, because they have a lot of time to monitor the market. and when using a stop loss, they will place a distance from the lowest support, thus giving the market room for movement, because the market habit is to just grab the stop loss and then reverse direction

[pelumi20]

It is highly irresponsible for any trader to trade without a stop loss. Because you don't have a specific amount you are risking per trade and what happens to your whole equity in a black swarm kind of market? You lose all your money. Stop loss protects your trading capital, absence of it is nothing but gambling.

[Phrahm]

If you have extra funds and you do not mind losing them, then, of course, you can trade where the stop loss is, but for those who came to earn, I believe these are necessary functions.

[dimonstration]

Well, its really up to us if we will use stoploss  or the other way around. Some active traders are not even using this because they are more on alerts that will give significant prices on the market. They know exactly when to buy and sell. But honestly, i still prefer to use stoploss because its a very helpful tool for us active traders that we can prevent from losing such a huge amount. If we think the prices are already not bearable for us, then maybe we should start setting stoploss.

There is no harm in using stop loss, it’s safety net we can do as we do not know when will the market fall or up how much we can see our investment fall. It’s much better to use stop loss than regret not using it in the end. For so many times I regretted not setting up stop loss due t the fact I monitor the market every now and then,but there will be really a point where the market is too volatle and you can’t do anything about it. It's an option which sometimes can help us alot especially if were not that pro in trading.