Is Using a Stop loss "Good" or "Bad"

[Synchronice]

I have traded and analyzed several charts and I have come to a conclusion that trading with a stop loss is the easiest way to lose money and not a safety net because if your analysis is correct what happens most of the times is markets go for the stop losses which takes you out of the market and price turns to your predicted direction after the stop hunt which many consider as market manipulations.

So is using a stop loss good or bad?

Do we have traders that trade without them, if yes what's your win ratio using this strategy?

You described the downside of stop-loss order accurately but you completely ignore the second side - you may lose significantly much without that. Don't combine the stop-loss function with the mentality don't lose more than you can afford to lose. These are two different things and together they will synergistically boost your losses.
Usually, you should use a stop-loss order when you don' want to lose more than 5%, 10%, if you set a stop-loss order on -30% of your capital, then there is a high chance that if the coin experiences 30% decline, it may gain back quickly or at least on long-term. If coin loses more than 30% and 50% for a long time, then clearly you invested in the worst case.

My advice is to just don't follow the written rules in trading, reality changes very quickly. Always update yourself with news and don't rely only on technical analyses.

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[milewilda]

Well, the discussion has been long enough to evaluate if this is Good or Bad, or if it was helpful or not. And to find out that the majority voted YES, was Good and it was helpful.

But of course, it was just ourselves that can assess how it affects us. As this also varies on our strategies and our decisions. This stuff makes the results different and even though we all are using a Stop-loss strategy doesn't mean we have the same output. Yet, it is very important to know how we communicate and respond to market situations.

There are traders who rarely use stop loss and choose to hand-close orders. Yet, they are still able to manage consistent earnings because they know their edges and create a good trading habit. Stop loss is just a way to prevent loss. However, controlling ourselves is the true key. With such characteristic, ones know what to do, how to manage risk, and when to enter a trade.

Stop loss is not essential, but it should be crucial to all newbies who know that they are more "gambler" than "trader"

They do rarely make use of stop losses since they do know that once they have loses they could still have the chance on taking it back as long you havent close the order.
Althoug majority of people been saying or mentioning about Stop loss benefits or usage but we know that there are specific conditions on which it could
fit out.

Here's a good read: https://www.marketwatch.com/story/why-i-stopped-using-stop-loss-orders-2013-05-09
Always consider that there's always a cons on using it.

[Myleschetty]

Yes, stop loss save from making losses but also prevent traders from making profit because it is not all trading that requires the use of stop loss. Therefore, I believe what every trading require is goals per each trade and if the goal of the trading is short it may require the use of stop-loss but if it's long there's no need to use stop losses.

Stop loss would be materialized losses once those things been triggered out which is something that need to be considered and this one would really be varying on what kind of trader are you.

Some do really make use of it when they are actively seeing price movements or simply being with the monitor and watching your trades on long period of time but if you are someone
who do come once in a while then you wont really be needing such tool because even if you do lose or floating negative you could still make some recoveries if the
market would make out some u-turn.

You understand what I am trying to point out when i said stop-loss could also be the reason why a trader makes a loss if not used properly and this is what I want the OP to understand because misinformation was the reason why some newbie investors see Bitcoin as quick to rich scheme whereas thats not how things work.

[AicecreaME]

Yes, stop loss save from making losses but also prevent traders from making profit because it is not all trading that requires the use of stop loss. Therefore, I believe what every trading require is goals per each trade and if the goal of the trading is short it may require the use of stop-loss but if it's long there's no need to use stop losses.

Stop loss would be materialized losses once those things been triggered out which is something that need to be considered and this one would really be varying on what kind of trader are you.

Some do really make use of it when they are actively seeing price movements or simply being with the monitor and watching your trades on long period of time but if you are someone
who do come once in a while then you wont really be needing such tool because even if you do lose or floating negative you could still make some recoveries if the
market would make out some u-turn.

You understand what I am trying to point out when i said stop-loss could also be the reason why a trader makes a loss if not used properly and this is what I want the OP to understand because misinformation was the reason why some newbie investors see Bitcoin as quick to rich scheme whereas thats not how things work.

Stop loss is staying at the same zone.

Traders could always reentry a trade just in case they missed a chance to make profits because of the stop loss they made. Yes, I agree that using it right will never be the reason of losing profits in trades, but the trader instead. Stop loss is to prevent further losses, especially if you're just a newbie trader exploring how futures trading work.

I personally don't use it since all I do is scalping. I use it whenever I'm doing something while Trading, that way I could multitask.

[alik111]

Stop loss is undoubtedly a good decision to use because we know that the crypto market is highly volatile. So without using stop loss you can't save your funds when it's a breakdown. In every trade we should use stoploss.

[skarais]

In every trade we should use stoploss.

Maybe not, it depends on your trading strategy. A stop loss is a trader's way of exiting a trade when the price drops which may not be what they expected. It's a great option to prevent traders from losing more than they can afford, but I don't think you want to use stop loss if you are a scalper or scalping is your trading strategy of choice.

Then I also don't think someone who likes to sit in front of a monitor to monitor price movements would want to use stop losses, they might consider not using them while active in a trading session.

[investorss]

Hello!
I have also heard about this issue! Thanks for such valuable information! It has really helped me to solve the problem!

[stomachgrowls]

Hello!
I have also heard about this issue! Thanks for such valuable information! It has really helped me to solve the problem!

What problems had been able to solved? What issues you do mean?  Please be specific rather than on making shitty post on here.
In regarding on making use of stop losses then it would really be varying on what kind of trader you are because SL's would be really just relevant when you are
an active or day trader on where you could make use of these tools but if you are aiming for long term then these things wont really be that needed
because once SLs been hit then there's no way for you to recover.

[Myleschetty]

You understand what I am trying to point out when i said stop-loss could also be the reason why a trader makes a loss if not used properly and this is what I want the OP to understand because misinformation was the reason why some newbie investors see Bitcoin as quick to rich scheme whereas thats not how things work.

Stop loss is staying at the same zone.

Traders could always reentry a trade just in case they missed a chance to make profits because of the stop loss they made. Yes, I agree that using it right will never be the reason of losing profits in trades, but the trader instead. Stop loss is to prevent further losses, especially if you're just a newbie trader exploring how futures trading work.

I personally don't use it since all I do is scalping. I use it whenever I'm doing something while Trading, that way I could multitask.

Stop loss was introduced to prevent further losses due to the volatile nature of the crypto market. However, it is still a vice-versa type of thing and it is not always a strategy of staying in the same zone since it depends on the range set by the trader itself when executing the trading decision.

[jootn2kx]

Stop loss is a great tool in skillful hands, so to speak, and a real penance for those who don't know where and when to place it. I agree that it's very much like a knife or even like water - it keeps you alive but at the same time, you can drown in it. Everything is relevant, you know. There are tons of strategies to avoid stop loss hunting - some of them really work.
One can trade without a stop loss but it's possible only when day trading and being constantly glued to the screen. In that case, one may use the so-called "mental stop loss." Otherwise, you'll get stuck hoping that the market would "bounce back any minute now" while usually it just keeps sinking lower - been there, done that.

[molsewid]

Stop loss is a great tool in skillful hands, so to speak, and a real penance for those who don't know where and when to place it. I agree that it's very much like a knife or even like water - it keeps you alive but at the same time, you can drown in it. Everything is relevant, you know. There are tons of strategies to avoid stop loss hunting - some of them really work.
One can trade without a stop loss but it's possible only when day trading and being constantly glued to the screen. In that case, one may use the so-called "mental stop loss." Otherwise, you'll get stuck hoping that the market would "bounce back any minute now" while usually it just keeps sinking lower - been there, done that.

I always use stop-loss in futures, it is kinda hard if you are in futures and then you forgot to set a stop-loss. It will be very helpful in trading as well. If you don't have enough time to track the market and you only have free time trading that's the best thing to do if you are a day trader but if not I think it is fine without it, just hodl the coin until it pumps but make sure it is worth to wait.

[Desmong]

Stop loss is a great tool in skillful hands, so to speak, and a real penance for those who don't know where and when to place it. I agree that it's very much like a knife or even like water - it keeps you alive but at the same time, you can drown in it. Everything is relevant, you know. There are tons of strategies to avoid stop loss hunting - some of them really work.
One can trade without a stop loss but it's possible only when day trading and being constantly glued to the screen. In that case, one may use the so-called "mental stop loss." Otherwise, you'll get stuck hoping that the market would "bounce back any minute now" while usually it just keeps sinking lower - been there, done that.

There is limit to using a stop loss and we need to have that in our mind. Stop loss is used to prevent further losses that might occur when trading the crypto market. We use it to reduce our future losses incase the market goes against our predictions. Stop loss help more than what we have lost. Stop loss can makes a person make further losses and it can also market one loss.

[sensimilia]

smart traders of course will give a stop loss in every trading position, this applies to all types,
spot trading or futures trading, on the spot stop loss is not very influential,
because maybe the price could return there even though it has been dumped,
but in the future, without stop lose you will lose your capital

Smart trader always use top loss what ever kind of trading between spot or future keep safety assets and take recovery back when price drop, several trader looks as long term investor without use stop loss but risk with future trading without have bigger fund for back up away from liquidity. But still effective without stop loss on spot trading but really need waiting long term and more patience for reaching higher price later, but several smart trader take stop loss and got loss few percent than become long term holding or become several years with investor after price drop.

There is a huge demand for them but here they evaluate the time but there are many of them who do not evaluate the time they always rush to get tickets but to fix them.
The reason why a businessman has to be very patient to chat is because if he can have soldiers then they will never be able to improve the business and if he can be patient then he can do a lot of good things.

[Anders_Bitcoin]

For me, this is a necessary attribute in every transaction. Probably it helps more psychologically, since in this case I just install it before opening a deal and don't move it anymore

[sensimilia]

Stoploss save me many times and I think it's very good for safe you from big lose. In 2021 when market down hardly I made Stoploss on all my trade before some days and It saves my 500$ or above. Stoploss is just a tool and its good or bad depend on how you manage it. If you make proper Stoploss on your trade then it will work otherwise its may prevent you from big Profit also

If the traders like the comment you have chosen to edit here, they will choose it here, but if they fall into the category of many people here, it will be seen that they will make a stop loss there, but here it is, there is a lot of training for each but a lot for it.  Use is required but there is no need to use long here