Stop loss

[promise444c5]

 I had some scenarios of my stop loss being pushed down a little bit incurring  me more loss what could be the possibilities.

[1714661778]

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[1714661778]

1714661778

[BitMaxz]

Usually, it's due to price spikes your stop loss might be triggered at the worse price during these sudden price drops.

Or it might be due to the "Bid-ask Spread" If you want to know about it Binance has a good explanation about this below.

- https://www.binance.com/en-NG/feed/post/588182

[promise444c5]

Usually, it's due to price spikes your stop loss might be triggered at the worse price during these sudden price drops.
I think it's spike I do have this when I'm trading against a spike same occur sometimes with buy and sell limit

[Beparanf]

I had some scenarios of my stop loss being pushed down a little bit incurring  me more loss what could be the possibilities.

Aside from Bitmaxz explanation.

Probably, There’s no enough liquidity on the exact price that you set up for your stop loss that forced exchange to marker order your position to the nearest available liquidity.

For example you stop loss at 1.5$ while the next price with liquidity during the price spike is at 1.4$. Stop loss will just trigger your sell/buy order as market order when the market price trigger your set stop loss price. It doesn’t mean that your order will keep selling on the price that you set on stop loss. It still depends on the available liquidity on the orderbook.

[tbct_mt2]

I had some scenarios of my stop loss being pushed down a little bit incurring  me more loss what could be the possibilities.

Stop loss order is one of the best weapons in trading but it can fail if the market has very fast movement like crash or worse Cascade effect that is more terrible than crash.

You can consider another order that can protect your capital better than Stop loss order. It's Stop-Limit Order: What It Is and Why Investors Use It

Binance What is a stop limit order

Video How to use Stop limit, Stop loss orders on Binance

[promise444c5]

Stop loss order is one of the best weapons in trading but it can fail if the market has very fast movement like crash or worse Cascade effect that is more terrible than crash.

You can consider another order that can protect your capital better than Stop loss order. It's Stop-Limit Order: What It Is and Why Investors Use It

Binance What is a stop limit order

Video How to use Stop limit, Stop loss orders on Binance

Thanks for this combo sure to try it out

[EarnOnVictor]

What you enquire about is generally referred to as "Slippage," it's a situation in which the requested price is different from the execution price. This could happen during thin market liquidity or when the volatility is high. You should plan your trades better next time.

However, it's not a condition that should persist, some brokers/exchanges use this to scam clients under the guise of slippage, so if this persists, you might want to change your dealer.

[ScamViruS]

I had some scenarios of my stop loss being pushed down a little bit incurring  me more loss what could be the possibilities.

When the market is at extreme levels of volatility and the market crashes then Stoploss will not actually save you much from losses if there is not enough liquidity in that exchange. If your stoploss trigger is not enough liquidity in the orderbook, then the order will not be filled at the price you set the stop loss at, but will be filled at the price below that, at the price that the order comes in the orderbook.

Members have already given you enough important information, read those contents then you will understand yourself how stoploss actually works.

[GreatArkansas]

And another thing about is sometimes your stop loss is your entry price.
There are a lot of times when the stop loss is being hunted with candlestick wicks. I think also it is because common place where stop loss is placed, so traders for sure will drive the price on that or wait before they enter the price.

Overall, it will depend on your trading style, like your risk management, risk:reward ratio, how much you are willing to lose for that trade.

[Richkiedx]

stop lose is one of the most important for traders, especially when you are in futures trading, before you set your entry, don't forget to put a stop lose, you can liquidate all your money without it, I just advise here always set a stop lose or else your money will burn, put a stop lose on what you are ready to lose

[Franctoshi]

I had some scenarios of my stop loss being pushed down a little bit incurring me more loss what could be the possibilities?

I used to experience this scenario, It has both positive and negative effects on your trading, meaning if this scenario were to be that the price hit your t.p level, it would, in the same way, add more profit to your portfolio way above your take profit level, and it usually occurs as a result of a huge spike in the price of an asset when the market experiences high volatility in the price.  

Therefore, to resolve this, and if you are using the Binance platform to trade, there is a button that Binance added to their trading platform to solve this problem which is called price protection, This prevents your stop-loss and take-profit setup from going way above the set price level,  you can make use of it by switching on.

[jeraldskie11]

When trading with many pairings, your stop loss may be hit. Each currency has different levels of volatility, which is why the stop loss is usually triggered. As a result, you must investigate each pair in order to choose an appropriate stop loss size. The lower the wicks, the smaller the volatility. The more the volatility, the greater the wicks. So, if you want to be safe, choose a pair with low volatility, such as Bitcoin, which is ideal for scalping.

[TobeyHolo]

Before you even enter a trade, decide how much of your capital you are willing to risk. This is typically expressed as a percentage. For example, many traders might not want to risk more than 1% or 2% of their trading capital on a single trade.

[tbct_mt2]

When trading with many pairings, your stop loss may be hit. Each currency has different levels of volatility, which is why the stop loss is usually triggered. As a result, you must investigate each pair in order to choose an appropriate stop loss size. The lower the wicks, the smaller the volatility. The more the volatility, the greater the wicks. So, if you want to be safe, choose a pair with low volatility, such as Bitcoin, which is ideal for scalping.

Trading with many trading pairs is like you are overdo your trading that is not good because you will more easily lose control on your positions.

Holding for investment is best. Trading with limited trading pairs is one of best ways for trading with Spot. You will not have to spend too many times to analyze many things for those projects you are trading with. By trading, your positions will be affected by news so you must follow up news as well that is time consuming.

If you trade and ignore news, it's not good as sometimes with fiascos like Terra, Celsius, FTX, you must follow up news to cut loss and reduce your loss.

[Don Pedro Dinero]

I had some scenarios of my stop loss being pushed down a little bit incurring  me more loss what could be the possibilities.

This is the problem with stop losses, which is a tool that is heavily promoted in trading courses but can and does fail in steep market declines, as BitMaxz explains. In your case it seems to have made you lose more than expected but at least you didn't lose everything. When a company goes bankrupt or a shitcoin goes to 0, stop losses are useless and you lose everything.

[tbct_mt2]

This is the problem with stop losses, which is a tool that is heavily promoted in trading courses but can and does fail in steep market declines, as BitMaxz explains. In your case it seems to have made you lose more than expected but at least you didn't lose everything. When a company goes bankrupt or a shitcoin goes to 0, stop losses are useless and you lose everything.

The best stop loss is prevention by don't touch shit coins and mintable tokens. Because mintable tokens can be minted by developers so if they want to scam and have their reasons to mint more tokens, they will do it.

They will not be harmed because they prepare everything behind the scene. Only investors who don't know why and when developers mint more tokens and dump on the market.

When they mint more tokens, stop loss won't be able to save you. If you exit, jump in again and more minting happens, you will lose more again. Terra crash and Do Kwon minting then dump on Binance is an example.

[Eternad]

stop lose is one of the most important for traders, especially when you are in futures trading, before you set your entry, don't forget to put a stop lose, you can liquidate all your money without it, I just advise here always set a stop lose or else your money will burn, put a stop lose on what you are ready to lose

This is true but sometimes I’m not using stop loss if my liquidation price is very far away on the support. I only an amount to my margin that I can afford to lose so that I will just choose whether my position will liquidate or will profit.

I experience many time that my position stop loss triggered while the price action reverse after hitting my stop loss which will give me profit instead of lose if only I don’t have stop loss.

[palle11]

stop lose is one of the most important for traders, especially when you are in futures trading, before you set your entry, don't forget to put a stop lose, you can liquidate all your money without it, I just advise here always set a stop lose or else your money will burn, put a stop lose on what you are ready to lose

This is true but sometimes I’m not using stop loss if my liquidation price is very far away on the support. I only an amount to my margin that I can afford to lose so that I will just choose whether my position will liquidate or will profit.

You can't be sure that you will continue succeeding in such kind of trade. It is highly risky trading that way .

I experience many time that my position stop loss triggered while the price action reverse after hitting my stop loss which will give me profit instead of lose if only I don’t have stop loss.

This is always the feeling when the price bounce you out on a stop loss and do a reversal to work in your direction but have you thought of if you didn't put it and the price continue against your order and finally close your capital? Always use stop loss, it is better to trade with it because you have the assurance to meet your remaining capital when you lose the trade.

I had some scenarios of my stop loss being pushed down a little bit incurring  me more loss what could be the possibilities.

I think spread is more likely to be the reason. When brokers or exchange adjust spread because of volatility, it can affect the range of your stop loss.

[Mpamaegbu]

I had some scenarios of my stop loss being pushed down a little bit incurring  me more loss what could be the possibilities.

What do you think, that market makers will allow you win easily? Nah, not that easy. The big players know how to hunt SLs because they know where retail traders expectedly place their SLs and they want to sweep off those liquidity in corrective manner before heading to the same direction price was headed earlier. I said they know where most retailers place their SL because they look at Support & Resistance and wipe them off. That's what happened to you. To avoid such a scenario, what most traders do is wait for a break of the Support or Resistance level to place their trades and not place them exactly at that spot. Wait for a break and then place your trade.

[Ranmal999]

Many retail traders forget to or ignore SL and it ends by costing them there precious money because of liquidation. The market can be very unpredictable and volatile all of a sudden and before we realize our money is gone. SL prevents that from happenning. Big market whales use SMC to target liquidation from small retail traders. So it's alwats mandayory to use a SL. Even if you would still be at a slight loss after your trade hit Stop Loss it manages your risk and you could always make more profit from your next trade.
Remember,
No one is giving your liquidated money back. So manage risks and use SL always traders.