Would you still use stop loss

[joniboini]

I'm not sure what does this patient trading actually looks like. Can you share some vids or something OP? Since you said you saw someone posted their "patient trading" experience, I assume we can find it publicly just fine. Makes no sense to me why would someone assume not using stop loss means you're not being patient though. Managing risk properly doesn't mean you're impatience. While some "traders" talk from nothing, popular saying exist for a reason.

[Altsbits]

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?

90% of people lose their funds in crypto, the remaining 10% are the ones who improve. Setting up the right stop loss works as the most important structure. Setting up a stop loss solves the main problem. Setting up a stop loss, long-term analysis and patience may pave the way for you to move forward as a trader.

[Out of mind]

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?

This don't need stop loss, the market won't magically do 5x and liquidate you if you are shorting and you won't get liquidated even if BTC price turns to zero if you are longing.
It's true that there are scenario where stop loss is unneeded, stop loss best used when we are trading on curve and by that is trading on 1m - 5m time frame with high leverage.

Yes, when trading with low leverage, it will be risk-free, the possibility of liquidation is very low. When someone uses low leverage in the market from this position, the price will not decrease or increase very quickly, which will reduce the possibility of liquidation. But whenever high leverage is used, it will definitely be risky that at any moment the price will increase slightly and will be liquidated if it decreases again. When high leverage is used, it is definitely necessary to use stop loss, and when trading with low leverage, there is no need for stop loss. That is, in trading, when the leverage increases, the riskier it is, and the lower it is, the less risky it will be.

[gabbie2010]

Definitely Yes I must use Stop Loss, however positioning my Stop Loss must aligned with the amount of money I want risk ($200) and my Stop Loss must be wide having considered the volatility nature of bitcoin, gold and other assets that means my leverage might be less than 0.2x yet I am still risking $200 just to accommodate wide Stop Loss possibly placed at the last swing point, of course price volatility is very important because any trader can hit Take profit in quick succession likewise price can as well reverse and hit the Stop Loss if the Stopb Lose is not wide enough before continuation in your intended direction therefore Stop Loss is a must before placing an order

[tabas]

90% of people lose their funds in crypto, the remaining 10% are the ones who improve. Setting up the right stop loss works as the most important structure. Setting up a stop loss solves the main problem. Setting up a stop loss, long-term analysis and patience may pave the way for you to move forward as a trader.

It's a very low key strategy that many doesn't do. Those who's got a lot in this market trading and investing, they know when to do a stop loss. That will take them a couple of time for them to do the right thing of stop loss. Because if they're not going to do it, they'll be part of those many who have lost crypto and never come back. So to begin with traders who wants to stay long, it's an important strategy that everyone needs to do. Without it, you're going to just trade and lose it all without having the need to recover. You're not trading by doing that, you're losing money and gambling.

[masulum]

-snip- When high leverage is used, it is definitely necessary to use stop loss, and when trading with low leverage, there is no need for stop loss. That is, in trading, when the leverage increases, the riskier it is, and the lower it is, the less risky it will be.

I not really agree with that statement because basically there is no risk-free term in trading. Leverage not affect how fast market price move, but only make bigger or smaller our potential profit and loss. Even if we use low leverage or even trading in spot market without leverage, the risk of asset value drop will always there. Because of that, Stop Loss (SL) is still very important and must be used in any condition to protect money from big loss and prevent our fund stuck for long time in the wrong position.

[Hamza2424]

l.
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?

Yep, I would still use a stop loss because with lower leverage our liquidation target can already be far enough that we do not have to worry too much. There are times in the market when we think the price cannot go below a certain level, and we become so overconfident that we stop using stop losses, but the market is really unpredictable bro. I would not open any trade where I do not plan to use an SL.

Because even 200 dollars is a significant amount of money, and losing even half of it can make us regret it and push us into revenge trading. Leverage is another important factor here because in an extreme panic situation you could end up losing 800 dollars just to try to save 200. So what I would personally do is risk less and wait for the market to recover.

When I use leverage, I usually do not plan to keep the trade open for more than a day. I try to close it as soon as it gets close to my profit target.

[Asiska02]

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?

Using stop loss has been part of my trading plan and I won’t care if that my amount won’t be liquidated with the leverage I’m using. It is a part of my trading rules that I follow. Even if my account will be liquidated before reaching SL, I usually place one as I’m already used to it. The market is very volatile and nobody can tell what rapid moves the market can make or spiking that can happen in some market, so it’s better to be on the safer side always by placing your stop loss where it is suppose to be. This shows discipline rather than assuring yourself of the market going to obey your analysis of the market not going to liquidate you.

[savetheFORUM]

For me, my personal preference, I still would use stop loss. Not because the position size is huge, but it's just to protect my trade, just in case of uncertainty.
Stop losses are less about leverage and more about keeping bad trades small and controlled - for me, this is the reason why I will still use stop loss on this scenario, that's how I trade.

A huge size can sound like it is risky already, therefore stop loss may be recommended on it as well. But whatever the size involved is, but if we only want extra-care, then we can not go wrong with a 'stop loss' feature. Hence, it has a name like that .

Stop loss is only one of those tools to automate a trade. That means, one may still stop a losing trade in a manual manner, although it may also involve eye coordination or strict monitoring of the charts to pull off well. In short, it is not easy and that an experience may now involved. So maybe we are not on that level yet, which is another reason for us to say that we are still using a stop loss.

[The Cryptovator]

I don't trade leverage, but for spot trading I have used stop loss. It doesn't mean I've always been using a stop loss. Based on the circumstances, I have been using stop losses, but not always. Last time I made good profits from the stop losses. When the market was at its ATH, I had used a stop loss. When dumped, I have to buy back more at a lower price. If the market pumps, then I could make more money.

And one of the last trades I lost was due to the cancellation of the stop losses. When the market started dumping due to fear, I cancelled the stop loss. I thought the market would pump after hitting my stop-loss. So as a result the market started dumping constantly, and I lost funds. If I hadn't cancelled the stop losses, then I would have double the coins right now.

[PostQuantumBTC]

I don't trade leverage, but for spot trading I have used stop loss. It doesn't mean I've always been using a stop loss. Based on the circumstances, I have been using stop losses, but not always. Last time I made good profits from the stop losses. When the market was at its ATH, I had used a stop loss. When dumped, I have to buy back more at a lower price. If the market pumps, then I could make more money.

There is something you did not get right about stop loss. You said when you were having unrealized profit, you used stop loss. That should be take profit and not stop loss.

Stop loss is when you are losing and the order set by you get filled at a loss price, making you to lose some money but stop you from further losses if the market is still going against you. Take profit is when you are making money already and the price of the coin get to the price you want it to be sold.

[Plutomanian]

I'm not sure what does this patient trading actually looks like. Can you share some vids or something OP? Since you said you saw someone posted their "patient trading" experience, I assume we can find it publicly just fine. Makes no sense to me why would someone assume not using stop loss means you're not being patient though. Managing risk properly doesn't mean you're impatience. While some "traders" talk from nothing, popular saying exist for a reason.

First of all, trading is risky and a trader should be ready for whatever outcome that comes on his or her path. When opening positions, one knows there are two outcomes, either it yields profits or brings in losses. Trading is a very terrible thing when it comes to losses but a one time opportunity, not just that but a golden one when a trader makes huge gains from trades. 

Using stop losses in trades is very necessary because we're not whale and no exactly how unpredictable the market can be and most times, the market is cruel to us that do set stop losses because that's a button that reduces our losses in the market. Patience is good but can be you patient till the end when the market is not going your direction? Do you prefer to liquidate your portfolio rather than setting a stop loss?

[Dr.Bitcoin_Strange]

With the strategy you stated here which is $200 with 0.2x leverage, I won't put a stop lose because with such very low leverage, price will hardly go to my liquidation price. I do not trade with less than 10x leverage except it's very volatile altcoin before I can reduce to maybe 5x but I normally go as far as 20-40x leverage if am trading Bitcoin and XRP which are both my favorite pairs, so I believe that explains why I always apply stop lose.

[terrific]

That's enough for that leverage and maybe it will be an as is trade for me. So come what may, a lose is a lose.
And that's why I'm not putting a stop loss in it but if I make a profit, it won't be that much either.

When I use leverage, I usually do not plan to keep the trade open for more than a day. I try to close it as soon as it gets close to my profit target.

This, others have to understand that they have to do it and close it within the day and don't prolong it unless the market looks favorable to your trade.

[tvplus006]

...I always say not all trading strategies require stop loss. ..

Many traders do not use stop loss when trading on an isolated account, and in this case, the stop loss is replaced by the order liquidation point. But even in this case, the stop loss must be used, setting it slightly above the liquidation point. And in this case, you will save some money that will need to be paid to the exchange for forced liquidation.

[Wakate]

Stop lose is not built from fancy, it is there to help traders to take less risk in case the market can become volatile at anytime.
Traders safety should be the first thing to look at when trading to make money.
Trading without a stop lose is like trading without running any analysis from the market. You could suddenly lose trades since the past events often react in the future movement and news can make that happen quickly.

[BitMaxz]

Many traders do not use stop loss when trading on an isolated account, and in this case, the stop loss is replaced by the order liquidation point. But even in this case, the stop loss must be used, setting it slightly above the liquidation point. And in this case, you will save some money that will need to be paid to the exchange for forced liquidation.

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.

[univla]

Many people see stop loss as a mandatory rule, while others consider it completely unnecessary. In my opinion, taking an excessive position in either direction is not right.
Using low leverage is definitely part of good risk management. If someone takes only $200 position from a $1000 account and has 0.2x exposure, then the liquidation risk is greatly reduced. In such a situation, even if you do not give a tight stop loss, the possibility of the account blowing up quickly may be low. Therefore, it may not be necessary to always use a small stop loss in patient strategy or wider time-frame trading.
But having no stop loss does not mean there is no risk, this is a misconception. The market can often go in the opposite direction for longer than expected. Bitcoin is relatively volatile, and oil, gas or gold can also move quickly due to news, war, supply shock, interest rate, liquidity crisis, etc. Therefore, even if the leverage is low, the trader needs to have an exit plan in advance.
In my opinion, the real issue is not whether there is a stop loss or not; the real issue is whether the risk has been determined in advance.

[pawanjain]

I believe that stop loss should be used in general so that we can avoid unnecessary losses.
I have myself tried trading with and without stop loss and although trading without stop loss felt more convenient but at times it caused unwanted losses.
It could have been avoided if I had used stop losses in those trades. It feels more safe using stop losss.

[Byebyebtc]

I do feel that stop loss is always a part of any strategy, not necessarily like it's a part, but it has to be attached to any strategy,
Reason is because there is no strategy that is guaranteed 100% profits, the market might go against your predictions and it's only stop loss that can protect your capital/realised profits, it's not like you guys don't know the use of stop loss

But sometimes the purpose is underrated, most people loose money blindly (barely noticing) as a result of emotional swings but those losses will tell on them later on, so it's very important that you protect your money, emotions can make you feel "the money will just go and it's chill",but that wouldn't help you.