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

[wxa7115]

Can a trade be executed without a set stop loss?

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 losses are always important and good to be used by every trader. Understanding how to place stop loss has to be mastered. I do not think that there is a time when a trader should not consider a stop loss due to over confidence in their analysis. Stop loss is to reduce losses and as a trader the possibility of making losses should always be considered just as profit is considered. To trade without considering losses is reckless, and to practice such recklessness can be the beginning of losses.

I believe the same, it is easy to think that you do not need a stop loss as if you are a good trader you may spend years before you are so wrong on your prediction that your stop loss needs to save you from some massive losses.

However by refusing to use a stop loss altogether the risk that we are taking multiplies several times over, as now if for some reason we make a mistake there is not going to be any tool to help us to stop our losses automatically, and by the time we realize our mistake we may have accumulated way bigger losses than what we can tolerate.

[gunhell16]

I believe it depends on the type of trade you are making. When you are in the spot market, you don't really need to worry a lot about stop-loss apart from a few cases where you might have bought a cryptocurrency that is highly volatile and you fear it may lose a lot of value in no time causing you a big loss and such tokens barely manage to regain value quickly after that and your investment will get stuck for a good long while which isn't good for a trader.

However, someone who trades in the futures market, it becomes essential to use stop-loss because you surely can't afford to lose all your amount in liquidation in case the market doesn't move in the direction you predicted, and no matter how confident you are, the market can always surprise you.

If spot trading is what we often do in the trading activity that we do, in my opinion there is no need for a stop, maybe only for those who often do futures trade, margin or leverage trading or perpetual among these I think a stop loss is needed here in what I mentioned.

Because if the stop loss is not really used, the capital that will be used there will be quickly dissolved, so it is important to use the stop loss so that you can take longer to carry out the trading activity.

[tvplus006]

If spot trading is what we often do in the trading activity that we do, in my opinion there is no need for a stop, maybe only for those who often do futures trade, margin or leverage trading or perpetual among these I think a stop loss is needed here in what I mentioned...

I believe that the use of stop loss is also mandatory not only for margin trading, but also for trading on the spot market. And if your position can be liquidated in margin trading, then in the spot market you can turn from a trader into a long-term investor and then wait for months or even years for the price of the coin to recover to its previous level.

[libert19]

Yea, I don't use stop loss on order if I have put order in market bloodbath (less chance to fall further) and I trust that particular coin. I have few orders without stop loss at this moment too.

Do not get me wrong, I have gotten my whole positions liquidated due to not using SL but I still prefer no SL, you do you.

[Xampeuu]

If spot trading is what we often do in the trading activity that we do, in my opinion there is no need for a stop, maybe only for those who often do futures trade, margin or leverage trading or perpetual among these I think a stop loss is needed here in what I mentioned...

I believe that the use of stop loss is also mandatory not only for margin trading, but also for trading on the spot market. And if your position can be liquidated in margin trading, then in the spot market you can turn from a trader into a long-term investor and then wait for months or even years for the price of the coin to recover to its previous level.

You are lucky if you are still able to hold it for months or years, but if you are not able to hold it, it will result in big losses. therefore the use of stoploss is necessary only to be able to regulate the level of risk every time you make a transaction, because many traders seem to be able to withstand floating minus but cannot withstand floating plus, then if the minus always increases in the end they will become confused themselves.

[cafter]

I use stoploss but don't use take profit many times, I use stoploss to cut losses short.
when I was new to trading I was also not taking stoploss seriously because of this I doesn't able to cut my losses short and while watching the trade going against me, my mind isn't able to cut the trade after knowing that i is a losing trade. it become very hard to control emotions, and when I place stoploss first it helps me to cut my losses short and to keep a 1 percentage loss per trade. and helps me to not trade emotionally.

[tvplus006]

...During Bull season one should not use stop loss like if correction take place in crypto market then trade without stop loss can also give you profit.

Even in a bull market, the stop loss does not lose its relevance. And if the market corrects, you will have a great opportunity to redeem coins at a lower price after your position is closed at a stop loss, and this will ultimately only increase your profit.

[Yamifoud]

I use stoploss but don't use take profit many times, I use stoploss to cut losses short.
when I was new to trading I was also not taking stoploss seriously because of this I doesn't able to cut my losses short and while watching the trade going against me, my mind isn't able to cut the trade after knowing that i is a losing trade. it become very hard to control emotions, and when I place stoploss first it helps me to cut my losses short and to keep a 1 percentage loss per trade. and helps me to not trade emotionally.

Perhaps, the use of stop loss is for us not to lose our big as it is automatically completed when reaches the set price. This usually happens during the bear season but if we are very active in trading and have enough time in trading, I don't think it is needed for us to use this one. For my entire trading career, I have used this a few times and it is because I don't place a trade if the market condition is on the downside, I used to analyze the market first before trading.

[wxa7115]

I use stoploss but don't use take profit many times, I use stoploss to cut losses short.
when I was new to trading I was also not taking stoploss seriously because of this I doesn't able to cut my losses short and while watching the trade going against me, my mind isn't able to cut the trade after knowing that i is a losing trade. it become very hard to control emotions, and when I place stoploss first it helps me to cut my losses short and to keep a 1 percentage loss per trade. and helps me to not trade emotionally.

Perhaps, the use of stop loss is for us not to lose our big as it is automatically completed when reaches the set price. This usually happens during the bear season but if we are very active in trading and have enough time in trading, I don't think it is needed for us to use this one. For my entire trading career, I have used this a few times and it is because I don't place a trade if the market condition is on the downside, I used to analyze the market first before trading.

A stop loss is there to protect you, I know that many traders do not like to use a stop loss as they feel that the stop loss will get them out of their position when the price goes down, and then the market will go back to where it was just a few minutes ago.

And while this is common, the stop loss is not at fault, it is just that the trader is setting a stop loss that is simply to close to the current levels at which the market is trading, so if they set their stop loss at a lower level they will reduce the times they encounter this, while still enjoying the protection that a stop loss offers.

[Sebas.tian]

This is crypto trading, and it will be difficult for trader to be 100% positive with the market, because the price can pump higher today and you are not satisfy with the current price and you want it to increase more before you can sell, and it can make you to regret or rejoice which you will not miss the two at once. I use stop loss in my crypto trading since I know little about the market, and how to hold when the bearish season is still on which is a sign that if you trade at the moment you will go to experience  losses in your trading, but if you continue holding for bullish season to come before you can trade you will definitely achieve income that will make you happy which is a simple strategy many traders use to avoid loss in the crypto market.

[stadus]

No one can predict trading outcome accurately as they can be unpredictable most of the time. That's why I don't expect traders to be 100% positive on their trades regardless if they are the professional ones. Even those who master trading still cannot perfect their trades in one way or another.

My point is using stop loss can be useful at some point. The fact that we can't guarantee trading profits in the end, then at least through using stop loss we can also prevent our trades from losing a lot. But that remains a choice for every trader as trading using stop loss most of the time has also its own share of disadvantages.

[abel1337]

I don't think that it can really improve a trader because of not using stop loss. Sure, that are traders that don't really use stop loss but I personally think that it is advisable thing to do especially of you seeks improvement. Stop loss is the one that we absolutely won't want to get hit that's why I think setting it up is one of the result of the technical analysis that we traders do. We hitting the stop loss means that there's still a room for improvement on our technical analysis or research.

I myself don't use stop loss all of the times but it is only when it is a long term trade. Though I think it is still better to have a stop loss given that there's a black swan ones in a while which can possibly be a cause of liquidation.

At the end of the day, it will still depend on us on what we think will do good for us. Our money our rules.

[Issa56]

If spot trading is what we often do in the trading activity that we do, in my opinion there is no need for a stop, maybe only for those who often do futures trade, margin or leverage trading or perpetual among these I think a stop loss is needed here in what I mentioned.

It's a matter of choice, even if you are trading on spot, you might decide to use stop loss, but if you know you can maintain your trade yourself, then you can just decide not to use stop loss. Some traders do trade futures, and they don't even make use of stop-loss since they are active online and they can monitor their trade. But a newbie should always make use of stop loss. Even if they are trading on both spot and future trading, it will help them maintain their loss in case their trade goes against them. They won't really have much experience like people who have been trading for a long time.

[Hamphser]

I use stoploss but don't use take profit many times, I use stoploss to cut losses short.
when I was new to trading I was also not taking stoploss seriously because of this I doesn't able to cut my losses short and while watching the trade going against me, my mind isn't able to cut the trade after knowing that i is a losing trade. it become very hard to control emotions, and when I place stoploss first it helps me to cut my losses short and to keep a 1 percentage loss per trade. and helps me to not trade emotionally.

Perhaps, the use of stop loss is for us not to lose our big as it is automatically completed when reaches the set price. This usually happens during the bear season but if we are very active in trading and have enough time in trading, I don't think it is needed for us to use this one. For my entire trading career, I have used this a few times and it is because I don't place a trade if the market condition is on the downside, I used to analyze the market first before trading.

A stop loss is there to protect you, I know that many traders do not like to use a stop loss as they feel that the stop loss will get them out of their position when the price goes down, and then the market will go back to where it was just a minutes ago.

And while this is common, the stop loss is not at fault, it is just that the trader is setting a stop loss that is simply to close to the current levels at which the market is trading, so if they set their stop loss at a lower level they will reduce the times they encounter this, while still enjoying the protection that a stop loss offers.

I would say that stop loss would really be that something relevant on the time that you would really be able to encounter on dealing up with futures trading or when you do scalp and you arent planning to hold for long
time when you are in negative on which i would say that SL's would really be that something important specially when you are trying out to scalp but if you are making some spot trades and dont care
about those negatives then you wont really be that seeing for these indicators or tools to be used on because people would really be much preferred on holding their position despite of being negative.
There are really just those people who are really that mindful when it comes to their positions and could really be able to hold those open orders even if it would be taking a long time.
Actually it is really just that simple for you to be able to hold up a negative position and wont really be considered to be a total loss as long you arent closing up that position.

[Hypnosis00]

If spot trading is what we often do in the trading activity that we do, in my opinion there is no need for a stop, maybe only for those who often do futures trade, margin or leverage trading or perpetual among these I think a stop loss is needed here in what I mentioned.

It's a matter of choice, even if you are trading on spot, you might decide to use stop loss, but if you know you can maintain your trade yourself, then you can just decide not to use stop loss. Some traders do trade futures, and they don't even make use of stop-loss since they are active online and they can monitor their trade. But a newbie should always make use of stop loss. Even if they are trading on both spot and future trading, it will help them maintain their loss in case their trade goes against them. They won't really have much experience like people who have been trading for a long time.

That is supposed to do but yes, for newbies this is a huge help for them to lose big.
If we can perform trading correctly, stop loss has no use at all. As I've been in spot trading for several years, not have a single trade I never used this because I finished my trade before leaving. It is just how we manage our trade, maybe some are comfortable doing this but for me, it was not. Though we can't always ensure profit in trading, we can't just let our trade at a loss always as well. If we are sure about our trade, then there is no need to use stop loss strategy.

[EarnOnVictor]

-snip-
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 I am not a trader with long years of experience as well, I would have said that you lied by not using stop loss. But in practice, this is possible, yet it comes with some kind of trading sacrifice just as the use of stop loss. If you are such that truly doesn't use stop loss, you will definitely be the type that trades with very low risks and the risks that would allow you to be running in losses for days, weeks and months without your account feeling it. The downside of this approach is that you don't get to make much money and you get to waste much of your time when the market is against you and get to be nursing too much drawdown for too long needlessly. This approach as you can see has its pros and cons, just as the use of stop loss has its own pros and cons, so it depends on the individual.

Also for the record, I had traded this approach before, and it requires patience and the trader will only trade higher timeframes as the short-term strategies are meaningless with this kind of approach. But for me, I use stop loss any time I trade. Be it short or long-term, scalping and otherwise, I use my stop loss because I want to control my trade and account, not that the market will control them for me. The use of stop loss shouldn't be associated with fear, it's there for us to properly manage our trading accounts, and it will always save our account even at the time that the market hits the stop loss and goes back to our position. This could hurt, yet the stop loss has done its job, it's we that should reopen the position as and when right.

Like you, I have survived in the market for long, yet I use stop loss. The only difference between us is that I will always make more money than you because you can't dare to use a high risk and still let your account be exposed. The position will be liquidated soonest!

[tvplus006]

...There are really just those people who are really that mindful when it comes to their positions and could really be able to hold those open orders even if it would be taking a long time...

In order to hold a position for a long time and not use a stop loss, it is necessary to have a sufficient margin in your account, but this can ultimately only protect you from liquidation, but not from losses. So in the end, the open order will have to be closed anyway, only this will not be done automatically, but manually.

[ice18]

Is depends on your setup if your liquidation price is far enough and your are 100% confident that you will not be liquidated but if you are a risk taker going all in at 50x leverage with a very close liquidation then you need to use stoploss else goodluck to you, might get liquidated very quickly. About your question being 100% positive how can you say that? Looks like you are too confident market behavior changes from time to time be careful. 

[Awaklara]

Is depends on your setup if your liquidation price is far enough and your are 100% confident that you will not be liquidated but if you are a risk taker going all in at 50x leverage with a very close liquidation then you need to use stoploss else goodluck to you, might get liquidated very quickly. About your question being 100% positive how can you say that? Looks like you are too confident market behavior changes from time to time be careful. 

Yes, there is no 100% confidence that the situation will move according to what we planned. it all depends on the assets being traded as well. if the asset being traded has very rapid market fluctuations, the use of a stop loss would be more advisable. especially for those who are used to using stop losses, I think those who have experienced difficult situations in the market will be more careful in determining their targets and trading decisions.

[sana54210]

Is depends on your setup if your liquidation price is far enough and your are 100% confident that you will not be liquidated but if you are a risk taker going all in at 50x leverage with a very close liquidation then you need to use stoploss else goodluck to you, might get liquidated very quickly. About your question being 100% positive how can you say that? Looks like you are too confident market behavior changes from time to time be careful.  

Yes, there is no 100% confidence that the situation will move according to what we planned. it all depends on the assets being traded as well. if the asset being traded has very rapid market fluctuations, the use of a stop loss would be more advisable. especially for those who are used to using stop losses, I think those who have experienced difficult situations in the market will be more careful in determining their targets and trading decisions.

Unfortunately not that many newbies understand this, every single trade, every single purchase, all has a doubt, and if you feel like you trust it 100% then anyone who believes like that is a fool, they should never consider that at all.

We need to arrange something that would be a lot smarter and we need to make sure that we could make some good returns one way or another, that would allow everyone to get a better hang of things. I get that life is not all that confusing and we could have some trouble, but the reality is that we are going to end up with a bit of a doubt and that's a good thing, doubt makes sure you are on your toes and doing your best ,having full confidence means you will not be ready when something goes wrong.

It's better to be ready than sorry, if you keep on doing anything wrong then you would be ready to fix it right away or prevent it getting any worse. I hope that we could get to a point where people realize stop loss is a must.