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

[leea-1334]

I have talked about this many times before. There are 2 standard things you do as a trader,,, one is limit order, another is Stop Loss (both are limits I guess).

If you do not know what price you want to go in, and what price you want to go out, then you should never be trading.

You can of course adjust profit range with trailing stop but if you have ever been the victim of flash crash,,, then you know.

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Generally speaking, stop loss is a good feature an exchange can offer. It allows the trader to automatically exit and prevent more losses. If you use it properly, you'll find it really helpful. As what I've said, it will help you save some time and of course save money from the potential lose. It's bad, if you are poor in using it. I use it in ~60% of my trades.

Stop loss have potential for recovery our fund and buy back several altcoin with lower price, but still not all trader agree with stop loss and want to use it trough have coins assets drop price, keep holding until recovery and back to higher price is the only solution for them than have to use stop loss. But when getting price have been drop in -60% I think is worth for using stop loss but have been late with much loss on several altcoin trading and better keep holding waiting price up one day later.

[Ararbermas]

So is using a stop loss good or bad?

of course its always good to trade with stop loss, wherein, to protect your capital once you've made mistakes when it comes making prediction or let say there's a fake outs after you placing your order and etc.

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

yes we can trade without stop loss, but of course the amount to risk will increase as well, especially if you trade an altcoin that sometimes the leverage is too high that can literally burn your capital in just a seconds, so better to always have a risk management by the help of stop loss.

[GeorgeJohn]

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?

see it depends on you, because using a stop loss is the measure i find that will make to be safe in your trading industry, so the objectives of stop loss yields vitals techniques in trading because it act as a recovery agent in trading, but emphasising that it doesn't add any thing meaningful or makes you lose your trading, i will portray that it's base on your perception, because it's very obvious that using stop loss contributes immensely to alternative coins recovery via trading

[zaesvlas]

The tools themselves are pretty good. The only question is the trader's ability to use them. Based on this, the conclusion will already be different.

[Woodie]

The tools themselves are pretty good. The only question is the trader's ability to use them. Based on this, the conclusion will already be different.

Well said mate!
A stop-loss is a double edged sword that has good and bad written all over it! A stop loss can help in securing any profits made from going back to the broker which is what the profitable traders see it as, then there is the stop loss which is used to prevent further loss when trying to enter the market but this is where I have my doubts about its usefulness, a stop-loss is a good lure for any market makers to grab that liquidity as structure tells us where exactly this liquidity sits  because we all play the same game when putting these....and the only way to prevent being kicked out of the market when trying to enter the markets is not to use them 

[examplens]

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?

see it depends on you, because using a stop loss is the measure i find that will make to be safe in your trading industry, so the objectives of stop loss yields vitals techniques in trading because it act as a recovery agent in trading, but emphasising that it doesn't add any thing meaningful or makes you lose your trading, i will portray that it's base on your perception, because it's very obvious that using stop loss contributes immensely to alternative coins recovery via trading

I would say, without stop loss and awaiting a market turnaround turns every trader into a long term holder 
if you have enough free funds and you can wait, then stop loss is really a loss. this is of course only applicable to major currencies, by no means for some token shells, there the big loss (without stop loss)is almost guaranteed

[South Park]

I have talked about this many times before. There are 2 standard things you do as a trader,,, one is limit order, another is Stop Loss (both are limits I guess).

If you do not know what price you want to go in, and what price you want to go out, then you should never be trading.

You can of course adjust profit range with trailing stop but if you have ever been the victim of flash crash,,, then you know.

It is that simple and yet it is one of those of those things that people do not think about it, after all this is one of the most basic things that a trader needs to know, you need to know when to get in the market and when to get out if even that is beyond the ability of the trader then they have to go back to square one and try to improve their trading strategy, because without something as basic as that the chances they will actually get any profits out of the markets are zero.

[BitTraderCute]

to survive in crypto market, using stop loss is an obligation for us, we will face uncertain condition when entering trade. price could drop hardly in second without reason and if we didnt set our position with stop loss , liquidation will come to us. no matter for long term or short term trade we have to set SL to minimize risk

[leea-1334]

I have talked about this many times before. There are 2 standard things you do as a trader,,, one is limit order, another is Stop Loss (both are limits I guess).

If you do not know what price you want to go in, and what price you want to go out, then you should never be trading.

You can of course adjust profit range with trailing stop but if you have ever been the victim of flash crash,,, then you know.

It is that simple and yet it is one of those of those things that people do not think about it, after all this is one of the most basic things that a trader needs to know, you need to know when to get in the market and when to get out if even that is beyond the ability of the trader then they have to go back to square one and try to improve their trading strategy, because without something as basic as that the chances they will actually get any profits out of the markets are zero.

I think people do think about it,,, just that traders who come into this altmarkets seldom think to be careful, seldom think to make pragmatic behaviors that would be considered totally basic for regular traders.

It is a huge difference in mentality,,, the trading one and the gambling one. Gamestop and Wallstreetbets made people think it is easy to become rich.

[zulfi125]

As per my experience using the stop loss tool is a good idea to avoid big losses, if you will use stop loss then you can recover your loss through the remaining balance in future trading but if you will not use stop-loss then your account can be liquidated but if you use stop-loss then you can trade with remaining funds and this is chance to recover your loss, stop loss is a good strategy for trading.

[joeperry]

Maybe there is something wrong with your entry and putting your stop loss, although I understand what you are saying since it happened to me before but it is much more common that is save me rather than what you are telling.

Putting a stop loss in the price where you think would be the crashing point after a confirmation that's where I put my stop loss and it doesn't need to be like -10% or whatsoever it still depends on your analysis.

[Bl_385]

As per my experience using the stop loss tool is a good idea to avoid big losses, if you will use stop loss then you can recover your loss through the remaining balance in future trading but if you will not use stop-loss then your account can be liquidated but if you use stop-loss then you can trade with remaining funds and this is chance to recover your loss, stop loss is a good strategy for trading.

Crypto is too volatile to trade without a stop-loss.
If you like to gamble with lower amounts, then you can do without, but I think that any trading above $1000 requires a stop-loss

[zaesvlas]

I can’t understand one thing - why are there thoughts that this could be bad? It should be understood that the correct use of the tool most often has a positive outcome.

[Munir575]

Adopting stop loss system is good because crypto trading is mostly an assumption of how the market will move and it definitely won't go your way always and when you trade with a huge amount of money its best advisable you adopt it
 

I can’t understand one thing - why are there thoughts that this could be bad? It should be understood that the correct use of the tool most often has a positive outcome.

It never crossed my mind to douubt whether stop loss is bad because its as you've said the outcome is mostly a positive outcome.

[99Percent]

Stop loss.
Very useful for everyone who trades in futures
sometimes the market does not match what we expect it to be for the better. you do a stop loss. because it will be able to make you calmer, when your analysis is wrong

[doomloop]

Stop loss.
Very useful for everyone who trades in futures
sometimes the market does not match what we expect it to be for the better. you do a stop loss. because it will be able to make you calmer, when your analysis is wrong

That’s right. Most of the traders in the market do not have the time to be monitoring their trades on a daily, So what other way do you have if not to implement stop loss? This tool is going to help you to limit your losses for the day, but imagine when you do not make use of this tool and the market happens to be very bad for that day, and you will just come back to see that you have made a lot of losses instead of profit.

So, I wouldn’t get why anyone would say that stoploss tool is bad, when it is really a tool that has been and will always be very useful to a lot of traders out there.

[FlamingFingers]

Using a stop loss is very good, there are sometimes where by the market experience a very sharp drop if there is no stop loss you will be liquidated instantly, we all know how volatile the market is. The idea of stop loss is to give the market enough room to play out while also preparing for the bad times. No stop loss use is extremely risky and I do not recommend it for professional trading.

[zaesvlas]

It's just a tool. Don't think he's bad or good. The main thing is to use it correctly.

[istiak2277]

A stop loss is probably the safest way to trade inactively (for when you can't constantly check your notifications for example).

Why I would do that if I know the price will surely go up in one month or over a year. It is the easiest way to lose money as stated in the OP. A commonplace people put stop lose is right below the support level and it's not a myth that exchanges do manipulate to hit those levels. Using stop-loss could save someone from taking a big loss if he put all of his money in a single trade and does not have any funds for DCA. DCA is the most effective and safest way to win every trade.