Do we need to have a stop loss if we are 100% positive about a trade?

[booktiger]

When trading with a trend, when the market makes a correction, you don’t have to use a stop loss, because the big players will try to throw you out of the market and it will be a shame to miss a good trade.
When trading against the trend, for example, intraday, a stop loss should be used as you never know when the market will continue its trend again.
Of course,trading with a trend doesn't guarantee success but reduces the risks.

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[shushu9977]

First of all, I used many times stop loss to avoid the loss. It is useful for trader. But it is not always to use. I aso used it but now i  do not use. If a trade have proper knowledge about the crypto market, then he/she will trade long or short invest without stop   loss.

[justdimin]

Definitely not. If you are sure of the asset you are buying, why sell? You just need to buy more when it goes down. The more it falls, the more you buy. Actually in this case it is even better if the asset’s price is dropping because you can buy more for a cheaper price.

Let’s say you are in the real estate business and you have $10 million but no homes. Each house costs a million usd and you can buy 10 houses. After you bought your second home the prices took a nosedive and now each house costs $800k. That means you can buy 10 more houses with the remaining funds if yours ($8 mil).

That's the type of thinking an investor would have, not a trader. Traders like to buy and sell at all times, up or down, doesn't matter, they do not care. Investors like to buy and hold, if they trust what they are buying. This is why it's quite important to make sure that we are going to end up with something that will be profitable in the end.

I think long term holding is a lot more important and it is definitely profitable and should be considered as a good thing, but that doesn't mean that we have a right to tell people to hold. They will end up trading, selling AND buying which means that it could go down or up and doesn't really matter. I hope that it could get to a point where people could make some profit with it.

[Natalim]

It is not needed anymore if you are 100% sure about your trade. In fact, there is no reason to use a stop loss if you are a daily trader because you know when to sell. Definitely, as a trader we already know what is good for us and if this strategy really works well. Of course, we know what we are doing and what would help to improve our trading results. Therefore, if we think the use of stop loss is not necessary, then there is no reason to use it as well. This strategy is usually used for the starters but not those who have experience already.

[Russlenat]

I have been into trading for many years but I have never used stop-loss myself because I believe that stop-losses won't help a trader to improve his/her trading abilities. The stop-losses are something that will protect a trader from losing a lot of money in a trade but if a trader doesn't conquer the fear then that's the worst thing I guess.

I have won many trades and I've also lost many trades but I have never used a stop-loss for a single time and that has helped me as a trader to improve the areas that needed that improvement. I'm not really against stop-losses but I believe they can cause fear in the mind of a trader and the trader might not take risks if he/she fears about the losses that take place if the trades go wrong.

I would like to know that what you guys think about stop-losses, and how often you guys use stop-losses to avoid getting huge losses in your trades?

Using stop loss does not actually guarantee that you're not going to lose anymore. There are always inevitable losses when we trade, even pro traders are not free from it. But I'm not actually convinced on the idea of stop loss because I know for sure that If I always resort into using stop loss everytime my trades are not safe, then I won't gain the chance to improve myself and to improve my performance as a trader. For me, trading losses are actually unavoidable but the fact that we learned from it, then we can minimize committing losses the next time we decide to trade.

Probably, I am saying this because I'm not actually trading in leverage. But even to those who trade with leverage, its not good all the time that one should resort into using stop loss, its useless if you decide to take the risk and won't find ways how to maximize your trading skills so you can be free from series of losses in trading.

[Johnyz]

It is not needed anymore if you are 100% sure about your trade. In fact, there is no reason to use a stop loss if you are a daily trader because you know when to sell. Definitely, as a trader we already know what is good for us and if this strategy really works well. Of course, we know what we are doing and what would help to improve our trading results. Therefore, if we think the use of stop loss is not necessary, then there is no reason to use it as well. This strategy is usually used for the starters but not those who have experience already.

I’m wondering if there’s a real 100% sure about your trades and it looks like there’s no risk anymore.
And knowing when to sell is just like having a stop loss especially if the market didn’t favor your position. Stop loss is advisable even if you are a good trader already, just learned from those who got liquidated because of the market volatility, they don’t have the stop loss and that’s why they lose everything. Better to have this than to say sorry later on, you’ll lose nothing by just setting up your stop loss.

[SamReomo]

The day the market plummets by over 50% including Bitcoin like it did in March 2020 is the day you will know why some people use SL 
It's not about being brave or a coward. It's a just a risk management tool.

Well, I agree with you that Bitcoin can also move to very high %age a few days but I have my own strategy that I use and fortunately the strategy also works on those days when Bitcoin move to 50% or even more. I have been following my own strategy that has helped me secure profitable trades.

I have only faced a few losses when I traded very high volatility pump and dump coins. I know that it sounds funny but I had done that intentionally to see that how good my strategy is but unfortunately on those pump and dump coins my strategy didn't work at all.

If I'm not wrong then Bitcoin hasn't moved to very high %age in short time frame like 1 min, 3 min, 5 min, 15 min, and and even in 30min time frame. In fact I mostly do futures trading on Bitcoin so I don't think that my strategy is going to go down.

I didn't say that someone is brave or coward but I said that how someone can manage his/her emotions because fear is an emotion and if a trader has that emotion then his/her losses can be very high because fear and greed won't allow that trader to have successful trades very often. I won't claim to be a top level trader but I'm fortunate to have learned some skills that allow me to have positive trades.

[TelolettOm]

I have been into trading for many years but I have never used stop-loss myself because I believe that stop-losses won't help a trader to improve his/her trading abilities. The stop-losses are something that will protect a trader from losing a lot of money in a trade but if a trader doesn't conquer the fear then that's the worst thing I guess.

In fact, this will depend on each trader, right? how they organize their strategies before, during, and after placing their positions in trading. As long as it has worked well so far and is worth it, then just do it as you like.

However, it is true that there are many traders who use SL/CL as one of their trading strategies, especially if it is in Future trading, to reduce the risk of more losses due to liquidation. In particular, sometimes we trade at night and we are about to go to sleep, so many people implement SL/CL to reduce the risk of high levels of loss, so the point is that losses can still be measured. And usually this is for day traders who want short term or fast trading. So that when they reach SL, they can use other strategies to cover the loss. So, this is one of the strategies used. Once again, it comes back to each trader.

[johnsaributua]

There is an opinion that it is better to lose one than three, detecting with the stop loss technique with the image of the analysis chart that has been made, in my opinion if it is standing between the stop loss it is like giving yourself up, meaning that someone else is hiding there to execute the price break point . I prefer to sell instantly when the profit is point one, two and three at the price of the break in the past. For me it is better to sell 1/4 of the trading capital divided by 4 sessions. it is more calculating sometimes the percentage even though the 4th position is a thin profit even vulnerable, but I prefer without stop loss like you with my own decision. avoid blaming yourself from leaving too soon. Keep the price notification always active if it has touched the target to sell or buy.

[GreatArkansas]

(...)
I would like to know that what you guys think about stop-losses, and how often you guys use stop-losses to avoid getting huge losses in your trades?

It seems for me optional, I see some traders especially master traders as copy traders, and some of them are just letting their trades liquidate instead of setting stop losses, it's just very strange for me, they are just letting their trades to liquidate maybe also because of the win rate, and they can close the trade when it will be breakeven.

[wxa7115]

I have been into trading for many years but I have never used stop-loss myself because I believe that stop-losses won't help a trader to improve his/her trading abilities. The stop-losses are something that will protect a trader from losing a lot of money in a trade but if a trader doesn't conquer the fear then that's the worst thing I guess.

I have won many trades and I've also lost many trades but I have never used a stop-loss for a single time and that has helped me as a trader to improve the areas that needed that improvement. I'm not really against stop-losses but I believe they can cause fear in the mind of a trader and the trader might not take risks if he/she fears about the losses that take place if the trades go wrong.

I would like to know that what you guys think about stop-losses, and how often you guys use stop-losses to avoid getting huge losses in your trades?

In my case I do not think about a stop loss as being optional, even if you have a great strategy and you are very positive about the outcome of your next trades, a stop loss still needs to be used.

This is not about being fearful or nervous about the market moving differently than what you have predicted, this is simply a safety measure, a stop loss is like the seat belts that you can find in your car, you will not need them 99% of the time, but when you do you will thank your good luck you decided it you put it on, and a stop loss works based on the same principles.

[Richkiedx]

I do not use stop loss again since 3 years ago when I saw its disadvantages. You will know what that I am talking about.

I trade with low leverage.

I average. People that average will likely not be using stop loss.

Those traders that uses stop loss are those that uses high leverage, or trading a very volatile altcoins and not averaging.

yes, we need that even if your analysis is 100% perfect, remember that crypto is very volatile, many things can happen so if you want to take care of your capital, set a stop loss for your safety, even if you can sleep on it, and of course, put a take profit, that would help

[yhiaali3]

Personally, I have never used stop losses even once in my life, simply because I have always been convinced that a coin that is falling is better to wait until it rises again.

But sometimes this strategy fails because some coins fall and do not rise again, so using a stop loss is best in such cases.

The conclusion I draw from my experience is that stop loss is not used in strong coins such as Bitcoin and Ethereum, but it is necessary to use it when trading Shitcoin or other coins that you are not sure will rise again in the future.

[Eternad]

I would like to know that what you guys think about stop-losses, and how often you guys use stop-losses to avoid getting huge losses in your trades?

Stop loss is used to avoid unexpected drop on the price that will inflict you unexpected losses. There’s always a chance that an opposite result will come even if you are 100% positive on your investment since you don’t know what’s happening behind your investment.

Stop loss will not hurt you if you knew how to setup it properly. Also if you are positive on your investment then you don’t have to worry about your stop loss since it will not be hit according to your belief. It’s like some insurance but is free which means you have nothing to lose when you use it but it will save your investment once unexpected dip happen when you are not active.

[el kaka22]

If you are 100% positive about a trade of course you do not need it, but the trouble there is not the stop loss, it's the "how are you 100% certain about a trade"? I mean do you realize that you can NEVER be 100% sure about a trade right? It's literally mathematically impossible to be 100% certain about a trade and you should be checking the situation a little differently.

I think it's quite clear that we are talking about a situation where life is a bit harder and you need to make sure you have stop loss that you could use, it would make it a lot better for you. Plus, even if you are 100% certain about it, putting it there just in case can't hurt you, like you say it will go up, and it does go up, then why wouldn't you have stop loss, it doesn't change anything.

[Rehan Zakir]

I think stoploss is a very good thing. But it is very useful if you are not in front of the computer system. It protects your account from sudden dumps and pumps in the market that liquidate your account. So, if you are holding coins in spot trading then don't use stop loss. If rate goes down then buy some more quantity at cheap prices.

[Franctoshi]

I have won many trades and I've also lost many trades but I have never used a stop-loss for a single time and that has helped me as a trader to improve the areas that needed that improvement. I'm not really against stop-losses but I believe they can cause fear in the mind of a trader and the trader might not take risks if he/she fears about the losses that take place if the trades go wrong.

I would like to know that what you guys think about stop-losses, and how often you guys use stop-losses to avoid getting huge losses in your trades?

If you are not an experienced trader, it is highly encouraged to use a stop loss to protect your account from total liquidation because there are some newbies mistakes that we will do starting our trading journey that may result in our trading account wiped. But if you are an experienced trader and have good knowledge of the market and know when to take profits and as well exit the market without stop loss, then good for you.

I tried trading many times without stop loss after observing that most of the time I used stop loss the market usually comes to hit my stop loss, The result was not funny, and the market ducked with me because that was when I first had my trading account got wiped by the market

[Dr.Bitcoin_Strange]

I doubt that I have used stop loss while trading cryptocurrency, but if it were when I was into forex trading, I know I have applied stop loss a few times, but that did not even give the result I expected. I think the best thing to do as a trader is just to trade with low leverage, and if you are using low leverage, there is no need to apply the stop loss. The best thing to do is just use low leverage and accumulate your profit gradually. If you are also using high leverage, that's when you might have the need to use stop loss, but it will make you not be steady in the market, like you will always cultivate some atom of fear in every trade you want to enter. I don't advise that the stop-loss feature is what a trader should get used to.

[Maslate]

It depends on the actual mindset of a trader. If he has reliable experiences in trading that makes him confident to trade and expect positive outcome, then using stop loss might be useless. Even myself if I have obtained the best strategies in trading that work for me for a long time, then I will never resort using this stop loss. It's always challenging if you know for yourself that you are trading for success, and not that you end up trading using stop loss because you have fears from losing.

While this is true for majority of the traders, but I still believe that some traders are still dependent from using stop loss. And if it works for them, then I have no issues with that.

[jeraldskie11]

I have been into trading for many years but I have never used stop-loss myself because I believe that stop-losses won't help a trader to improve his/her trading abilities. The stop-losses are something that will protect a trader from losing a lot of money in a trade but if a trader doesn't conquer the fear then that's the worst thing I guess.

I have won many trades and I've also lost many trades but I have never used a stop-loss for a single time and that has helped me as a trader to improve the areas that needed that improvement. I'm not really against stop-losses but I believe they can cause fear in the mind of a trader and the trader might not take risks if he/she fears about the losses that take place if the trades go wrong.

I would like to know that what you guys think about stop-losses, and how often you guys use stop-losses to avoid getting huge losses in your trades?

I don't believe that trading without stop-loss improve your trading abilities. There is an invalidity zone where if the price went to that area I will consider that my analysis is wrong or the market will go to the opposite direction. How can you survive the market if you loss 3 to 5 trades if you didn't put a stop-loss? Honestly, if you apply risk management even if you lose 10 trades or more, you probably still have remaining funds to trades. I have tried not to put stop-loss in my first trades but it won't work, maybe it's because the winning rate of my strategy is very low. But if you are profitable yet in trading and your win rate is around 90% I think it will work, but sad to say that there is no strategy having that win rate.