Would you still use stop loss

[YOSHIE]

If you have $1000, treade with $200. Would you use stop loss?

It is true that the Stop loss strategy is good to use in crypto trading, especially when the market situation has fallen drastically, but at times like now I find it difficult to determine the percentage of my capital at which I am ready to take risks, that is the problem.

As you said, for example I bought with capital of $200 for that for the ideal stop loss I am not clear, 1%-2% I doubt, so for the current market situation I prefer the investment method or Spot trading, not Stop loss, maybe I am more confident in Spot, of course I have to monitor market developments at all times, after all the decline in assets in the market is unstable, that's the reason I don't use the Stop loss method.

[suzanne5223]

Would you still be using stop loss?

I will somehow still use the stoploss, but after the market follows the A+ setup I will only use the SL but as a breakeven strategy to secure my interest because it's something that has happened to me several times when the setup is good, and the market respects it, and along the line, something happened/a news broke that influence the market and change the market trend instead of making profit i end up lossing money.

[Jegileman]

Here is it
If you have $1000 on your derivatives trading account on an exchange, you use $200 (max) which is 0.2x leverage to trade daily. Trading just bitcoin or less volatile asset like oil, natural gas or gold. Would you still be using stop loss?

Stop loss is used as a point to invalidate your trade, so not using stop loses means you’re sure of your trade and that you won’t get liquidated as long as the position still remains open in the market. Trading has to do with proper risk management which I think using stop loses will help you to also achieve that. The amount of money and leverage position you’ve opened shouldn’t influence your choice of using stop loss. I think as a trader, it should be a part of you and for almost all of your trades it is required to use them. Not putting stop loss can cause you panic, you should not allow that to affect you psychologically when trading.

[LogitechMouse]

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I saw someone posted this and I think I find a good patient trader that may not be using stop loss, unlike many people that are not trading, but posting that people should use stop loss regardless of the trading plan that the person is having, or people that may be part of the 85% of traders that are losing, using high leverage and advising people to use stop loss. I always say not all trading strategies require stop loss. Patient trading strategies which is the best does not require stop loss, but the profit can be slow but probably gradual.
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Or this could go the other way.

You can be patient yes, and you can be patient enough to wait for your profit to be hit. Profit could be slow but probably gradual? Probably, but it can also go the opposite way. I'll take HYPE for example where it's price shoot up in these past few days to weeks. Let's say a trader entered a short position at around the $30-$40 area. Now look at what's the price of HYPE right now. It's around $60 already meaning he's already on an impermanent loss and depending on the leverage, he might already got liquidated as of this moment.

This could happen to those who aren't using Stop-loss whatever the strategy they have. They can enter a short or long position, then the coin goes against them, they'll patiently wait until they get liquidated regardless of the leverage that they're using. Also, this is mentally tiring as well. I mean seeing your position on a negative PnL? That could affect the trader mentally, and if they panic easily, they could just close the position with a huge loss IF THEY AREN'T USING STOP-LOSS.

TBH, I don't know if there's anybody out there that aren't using Stop-Loss whenever they're trading on Futures. Whether you're a swing trader, position trader, I believe that stop-loss is a must. On the flip side, if not having a stop-loss works in your favor then I'm not in a spot to complain about it. At the end of the day, the strategy that works for me might not work for you and same with others here.

[vs2014]

Stop loss orders are a well organized strategy for traders to manage risk and automate selling decisions based on price movements. While they can help limit losses and eliminate emotional bias the cost of executing them can vary especially in rapidly changing markets. Different types of stop loss orders provide flexibility in how a trade is entered. Thus, it helps investors adjust their strategies to market conditions. Although these orders can be effective in protecting profits or preventing large losses they have some risks such as being executed early during short term volatility or creating gaps in prices during sharp market declines.

[tvplus006]

...TBH, I don't know if there's anybody out there that aren't using Stop-Loss whenever they're trading on Futures. ..

There are actually a lot of such traders who ignore stop loss, and almost all of them are beginners. As for experienced traders, those who do not use stop loss use other ways to limit risk, such as isolated margin, low leverage, manual position closure, daily loss limit, hedging, and others.

[Jaweria parveen]

If I have made some carelessness without knowing it and if I can understand the market and make a good analysis, then I can not step back. With this, I can also cover my loss and once again join hands with the trade. If I do not understand and I cannot cover my loss, then I will close it. So this is an easy decision but some people use it with a very wrong thinking because they think that they can cover their loss by betting their luck. We should look at this difficult task only by considering our analysis because at this moment many people fail by taking emotional decisions.

[Uruhara]

I still prefer to set a stop-loss from the start. That’s because my approach to risk management involves setting entry points, take-profit points, and stop-loss points. Even when I know I have a large capital and am using only a small margin, I will still set a stop-loss. However, if trading in the futures market with leverage below 2x, I prefer not to trade in the futures market. It’s better to trade in the spot market, which is much calmer. As long as the assets we hold have clear fundamentals. However, if what’s held in the spot market is Bitcoin, I won’t use a stop-loss at all. As for altcoins, I do have a stop-loss point because even well-reputed altcoins can experience crashes like Terra Luna, for example, and FTX.

[bitgolden]

For isolated traders, yes, they use the liquidation as their SL, but most traders who do stick with low risk below 5% of their whole capital need some calculation here. I don't think they can just think to put all $200 margin if your total capital is $1000, but since someone opened this discussion and he mentioned the 0.2x leverage, he might be talking about lower leverage or at least 1x leverage if you keep it long and hold it for a year or so; liquidation with 1x, I think, does not exist except if you go short minus the trading fees and funding fees.

The only problem here is if you hold your position for too long, even if you are in profit, the funding fees would be your problem in the future.

I understand that it is not going to be possible for these people to make that kind of profit, but it is not impossible to make some profit that way neither.

The point here is that you should be careful about what we are dealing with and for that reason you need to do something that will not be all that easy to handle. I get that it is not simple but it is also not that hard neither, you could make this work if you are a veteran with experience.

[Zoomic]

I have had my experience with the stop loss and I have learnt my lessons honestly.

Before now, I have seen some expert traders who brag that they don't need stop loss for anything. By then, I used to laugh at them because of my ignorance. But the day I concluded that stop loss is not our friend, or simply people watches it from behind lol.

What happened was I set a stop loss and was trading like an amature trader. Before I understood what was happening, my stop loss wanted to trigger, I adjusted it and it wanted to it again i reluctantly allowed it to trigger. Immediately it triggered, the market reversed from there and I was very much sad. That was the day I understood that stop loss is not as beautiful as I thought it to be.

[bangjoe]

Read this before you choose either yes or no.

I saw someone posted this and I think I find a good patient trader that may not be using stop loss, unlike many people that are not trading, but posting that people should use stop loss regardless of the trading plan that the person is having, or people that may be part of the 85% of traders that are losing, using high leverage and advising people to use stop loss. I always say not all trading strategies require stop loss. Patient trading strategies which is the best does not require stop loss, but the profit can be slow but probably gradual.

Here is it
If you have $1000 on your derivatives trading account on an exchange, you use $200 (max) which is 0.2x leverage to trade daily. Trading just bitcoin or less volatile asset like oil, natural gas or gold. Would you still be using stop loss?

That is a very small leverage number and it will not be easy to liquidate the position unless the price decline can be more than 500% it will liquidate the position, while talking about the assets you are talking about such as gold or Bitcoin will never experience a decline like that so this is quite conservative and there is no need to set a stoploss, but on the other hand it takes a lot of patience to hold positions when the situation is minus and your trading journey, don't forget to calculate the cost for your position.
But if you are a person who is full of caution installing stoploss is also not a problem even though the risk is small, you must consider that too so that your trading remains measured.