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

[adaseb]

When people first start to trade they never use stops because they have no idea what they are. After losing some money and discovering such an option they finally decide to use it.

However they find that wherever they put their stop, the market goes to that stop and ends up reversing after. So they stop using stop losses again.

Then there is one day when their position loses >20% in a single day and they didn’t get out, they finally realize that using stops was better then not using them at all.

[Xxmodded]

When people first start to trade they never use stops because they have no idea what they are. After losing some money and discovering such an option they finally decide to use it.

However they find that wherever they put their stop, the market goes to that stop and ends up reversing after. So they stop using stop losses again.

Then there is one day when their position loses >20% in a single day and they didn’t get out, they finally realize that using stops was better then not using them at all.

Almost trader have the on their mind like that, first time when losing about 10% until 20% not use stop loss but when getting loss almost 30% until 50% try with cut loss and looks very bad thing. Better loss 10% by using stop loss than have loss almost 40% when try to cut loss, if still have several percent loss we can recovery and buy back some coin on lower price than got profit for closing with how much loss before from stop loss. I have adopt this way when my assets drop 20% I use stop loss and take recovery with buy back on lower price again.

[virasog]

When people first start to trade they never use stops because they have no idea what they are. After losing some money and discovering such an option they finally decide to use it.

However they find that wherever they put their stop, the market goes to that stop and ends up reversing after. So they stop using stop losses again.

Then there is one day when their position loses >20% in a single day and they didn’t get out, they finally realize that using stops was better then not using them at all.

Almost trader have the on their mind like that, first time when losing about 10% until 20% not use stop loss but when getting loss almost 30% until 50% try with cut loss and looks very bad thing. Better loss 10% by using stop loss than have loss almost 40% when try to cut loss, if still have several percent loss we can recovery and buy back some coin on lower price than got profit for closing with how much loss before from stop loss. I have adopt this way when my assets drop 20% I use stop loss and take recovery with buy back on lower price again.

You should always put stop loss in futures trades but  there is difference of opinion when it comes to spot trading.
I usually do not put stoploss in spot trades as I prefer to hold the coin rather than my orders hitting on stoploss and trade closing in loss. However you can only avoid stoploss in spot, if the overall market conditions are bullish.

[fauzan Ichsan]

I think the use of stoploss is good for those who are afraid of not being able to monitor the market continuously. What needs to be considered is that the stop loss placement should not be too close to the running price, we must provide room for movement so that the market can react freely. indeed, our stop loss is often picked up and the price returns to the prediction direction. therefore it is better to place a stop loss in an unreadable area

[Odusko]

Stop loss is just a tool in the hands of the trader by the exchange to be used when you see it as a necessity because when I chose to activate my stop loss is when I want to go away from trading science for a long time so I will set my portfolio on stop lose so my coins get converted automatically when the price reaches a certain level.

[jaberwock]

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?

Some people do say that it depends on your settings, sometimes it’s best to set it to a lower price so that when the market goes negative for a bit it doesn’t trigger the stop loss except when it goes further. Everyone knows how it would work best for them in this case.

I think stop loss is mainly for when you are not going to be there for a long time and you think that the market would go way too low, so you can implement that to save you from too much loss. Although another thing you have to know is that a stop loss can fail, because it only triggers a sale, but it doesn’t guarantee that your asset is sold at a particular rate.

[palle11]

indeed, our stop loss is often picked up and the price returns to the prediction direction. therefore it is better to place a stop loss in an unreadable area

This is what makes stop loss complicated because it hunts you and go back to continue the move. When you adjust stop loss to a higher range is also dangerous because if the stop loss is hit, you will lose a large percentage of your capital and may lose courage to continue the market with what is left of it. But the important thing is to use stop loss but not to draw it very far from the market or too close to it and to analyse very well before making the order.

[AicecreaME]

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?

Using a stop loss is good for those who have only small amount of capital, but doesn't need if you have too much money on your wallet that can withstand early liquidation. Mostly traders who put stop loss are those scalpers, and those who enter a trade and leave for his job. Using a stop loss is a choice, maybe it's not good for you but it's good for someone out there, including me. It's easier to re-enter another trade than to watch your trade bleeding out red.

[Rengga Jati]

So is using a stop loss good or bad?

The use of Stop-loss will depend on who we are and what kind of strategy we are using.  Some people may not use any Stop Loss moreover if we are not day traders. Or if we are a holder or investors, or long-term holders. It will be okay to ut our assets on our Spot market in order to wait for the price rising up at a certain price.

However, if we are day traders, using Stop loss is very helpful in order to manage our funds due to the high volatility of the cryptocurrency market.
However, it needs wise management and decision when we are using the Stop Loss. We must also know the right time and indicator about when we should use or implement Stop Loss, in what rate and how far from our bought price.

I read an article and this is very interesting here:
https://www.thebalance.com/where-to-place-a-stop-loss-order-when-trading-1030867
https://www.thetimes.co.uk/money-mentor/article/crypto-tips-mistakes/

[NewRanger]

When people first start to trade they never use stops because they have no idea what they are. After losing some money and discovering such an option they finally decide to use it.

maybe they were over confidence with their analisys so pratically want to one shoot and earn huge profits. the fact its very rare to find traders that able to survive with this strategy, without money management only in one or two position we will easily liquidate.

Using a stop loss is good for those who have only small amount of capital, but doesn't need if you have too much money on your wallet that can withstand early liquidation.

even huge balance traders need to use stop loss, we will never know how volatile go on . maybe we use 2% each if we use stop loss, but while we open it sometime our negative position could be more of that. the rest still can used to open other position that maybe gain profits.

[nur rochid]

sometimes everyone doesn't like using stop losses, because many of them don't want the stop loss to be picked up and the price to go up again. but there are some of them who use cutloss as a substitute, so they must often check the closing price that occurs, if the closing price has broken support then they immediately exit the market manually. I think to use it depends on our convenience, the important thing is that we know how to use it properly

[adaseb]

One advise I can give if you want to use stops. You need to learn to put it in a good place. What most newbies do is they put the stop loss either at a round number like $41000 or $40000 or $39000. Or what they do is they put it near a pivot low or high OR at the daily low or high.

This is a horrible way of using a stop loss because those areas typically get run. Its very obvious many traders using the daily low or high. That's why alot of times there are failed breakouts and then the reversal. This is due to stop losses getting run.

You either need to put it in a random spot or before the daily low or high. That way you don't deal with slippage at least.

[Hypnosis00]

sometimes everyone doesn't like using stop losses, because many of them don't want the stop loss to be picked up and the price to go up again.

That be unreasonable. Traders had used this strategy to protect from losing much which is found to be effective in knowing the volatility of the market and abrupt changes in trend.

but there are some of them who use cutloss as a substitute, so they must often check the closing price that occurs, if the closing price has broken support then they immediately exit the market manually. I think to use it depends on our convenience, the important thing is that we know how to use it properly

Absolutely, the trader has their choice. Perhaps they choose to use a stop-loss strategy as they understand it and know how/when to apply it. But those who can't and feel they just losing more, certainly can't appreciate it. 

[xmonkeyx]

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?

using a stop loss I think is very good where we can stop losses and return to trading for other coins but how to use it must be considered because we don't always have to stop loss for potential coins.

[wxa7115]

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?

If your strategy benefits from not using a stop loss then I am not going to question you as each strategy is different and you may not like the idea to reveal it to the members of the forum.

However in the overwhelming majority of the cases a stop loss is a good thing and people need to use it, otherwise the losses they will incur will be massive, now it is true that a stop loss that is too tight may cause problems but this can easily be fixed by increasing the range of the stop loss while reducing the size of your position.

[AakZaki]

That be unreasonable. Traders had used this strategy to protect from losing much which is found to be effective in knowing the volatility of the market and abrupt changes in trend.

I wish all exchanges actually had this feature, but it doesn't seem to be all. Traders have many techniques according to what makes them feel comfortable so the difference is natural. I myself am more happy because it will reduce the danger of losing more. Although I know, this feature will certainly be better combined with technical analysis so you don't just determine by guessing. Although many people say do not lose your capital more than 7-10% and maybe it can be used. But using technical to install stop lose seems to be more effective.

[feelideb]

Stop loss is neither good, nor bad, it depends on your trading objectives! If trader is trying to keep his capital from been eroded from volatility, stop loss will definitely be a good strategy to employ. If however you scalping or trying to take a long position, stop loss my work negatively on your objectives!

[DoublerHunter]

~snip~
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?

^ Stop-loss!
We are not talking about a profit here, we are talking about how to cut your possible loss or how to avoid a huge loss while in trading.
This is a very important tool in trading to have stop-loss and avoid unexpected massive losses just like when the market behavior has a downtrend which is pretty normal to the market that has an unpredictable price. So it is good to use this stop-loss while in trading and if anyone who will not use is expected to have a massive loss someday. Traders should always have an advanced mindset in trading, these strategies will help you in your trading activity.

[bhooscream]

So is using a stop loss good or bad?

Stop-loss is just a feature for trading. Good or bad using it, depends on the trader himself.
For an active trader, I think it is not necessary to use stop-loss because he is always active to check and monitor the market every day. Whenever he wants to sell, he just puts their tokens/coins into the sell order. While for a passive trader, he may need it to avoid extreme losses when there is a huge correction/drop.

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

I rarely use stop-loss, I am always checking my coins/tokens in the exchanges every day. Regarding the win ratio, I never count it and I don't really think about it so much. As far as I think it works properly, I will go with my own way.

[Viscore]

The stop-loss strategy has been used for our benefit.
It helps to cut you down from losing more and this become useful during the bear season. Thus, if you are in trading, you can really appreciate its importance, in fact, the majority of the traders had used this for the said reason.

It is GOOD or BAD? Depends on what is your purpose for using this but for me, it was a useful strategy.

If you are trading for good profits and would not want to mess up and lose them, trading using stop loss will definitely work. It will give you guarantee that you are not going to lose much, even if you will not closely monitor all your investments. As you will have no uncontrollable losses due to high volatility because you have set your price already when to sell if the price decline will keep on dropping. However, if you are seeing stop loss not for your own benefits, then its clear that it makes no sense for you.