Stop loss importance

[Rehan Zakir]

Got in a discussion with a friend that recently started learning Technical Analysis and then he said he trades without using stop Loss. I told him no good trader trades without stop Loss. I tried to explain to him about the volatility and how trades can go against you especially as a new newbie and you can lose heavily. He seems adamant and I decided to leave him maybe he will learn from his own mistake if it happens. It seems there are also many traders that trade without stop Loss and I wonder how they do it conveniently.

Please share your views on how important stop Loss is and how convenient it can be to trade without stop Loss.

[kropelos]

Stop-losses are used in dynamic trades to eliminate major and uncontrollable losses. If you don't use stop-losses, it's just a matter of time before a big losing stake spirals out of reach, wiping out the majority of your trading gains, and potentially your whole portfolio!

If you want to stay in the game and expand your trading account in the long term, you must use stop-loss orders in every single trade you make. The first rule of this article is to always use stop-losses.

[monig18]

For long term holding stop loss may not be put.But in intraday or in short term trading stop loss is very important.no one knows about market volatility.Market can change its direction at any time.If anyone do not use stop loss and market takes dump or correction ,he is in loss and he is stuck in that coin.If he use stop loss then after loss in that coin he can take trade in other coinand can recover his loss.

[gabbie2010]

The first step before taking any of my trade as a crypto trader is that I always ensured that I have a fixed stop loss to minimize my risk for any crypto trader it is very important to deploy stop loss in any trade due to high volatility in the price of cryptocurrencies especially scalpers who stayed in a trade for a long time hoping that the price will reverse however once such a  trade goes the other way round the trader will incur massive losses or rekt the whole portfolio.

[nicecrypto]

Got in a discussion with a friend that recently started learning Technical Analysis and then he said he trades without using stop Loss. I told him no good trader trades without stop Loss. I tried to explain to him about the volatility and how trades can go against you especially as a new newbie and you can lose heavily. He seems adamant and I decided to leave him maybe he will learn from his own mistake if it happens. It seems there are also many traders that trade without stop Loss and I wonder how they do it conveniently.

Please share your views on how important stop Loss is and how convenient it can be to trade without stop Loss.

To me I guess it depend on which side of the market you are trading. I believe if you are trading futures, then Stop loss is very important to use in all your trades because your assets could easily be liquidated without stop loss but if on the other hand you are trading Spot, I think SL might not be that much important especially when you know the market can still reverse even when the price has gone down below your entry price and you will continue to hold your profits. I dont use SL in most if not all of my spot trade because of what i explained and it has worked out every time once the market turns.

[Hikari]

Remember one rule:

The use of a stop loss is one method of protection. A stop loss is a tool used on most trading sites that immediately closes a losing trade when it hits a certain threshold. This instrument assists the dealer in protecting their account and being secure with the losses they incur.

In certain instances, traders' earnings have been washed out by a single unprofitable trader.

[Sammy9ce]

stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. Some traders trade without making use of stop lose and feel very comfortable just because they've not experience a loss caused by sleep of lack of concentration.
With stop loss is just simple and save to leave your trade or you can still watch if you wish but the fact remains; your money is been withdrawn from the trade once it exceeds a loss limit, terminating you from the trade to avoid more loss or liquidation. I think a good or  professional trader should make use of stop-loss.

[sergeybobrov]

Stop losses are needed if you are an active trader and trade with leverage. I used to trade in the forex market and without using a stop loss, I lost several deposits.

[Seerge]

If we trade Cryptocurrency, we need to do that to get more profit, if we have coins and the price goes down, then we can do the Stop loss method to secure our assets from greater losses, and we can buy them again at a lower price so that  we can get Crypto coins in a much larger amount.

[Lokeloke]

It's okay if you're trading for a long time without stop loses because it's even useless for a long term trading/hodling, but for a short time trading it's better to use stop losses because the market you predict may decide not to go your way and that's why it best to use stop loss to reduce your loss

[tvplus006]

Remember one rule:

The use of a stop loss is one method of protection. A stop loss is a tool used on most trading sites that immediately closes a losing trade when it hits a certain threshold. This instrument assists the dealer in protecting their account and being secure with the losses they incur.

In certain instances, traders' earnings have been washed out by a single unprofitable trader.

Setting a stop loss is not always useful. With high volatility, your order will be constantly closed at the stop loss. If you are trading on the spot market, and you are at the terminal, it is easier to close the order with your hands when you see that the price is moving in the opposite direction.

[robert20]

Stop losses for me has a really big importance . I always personally use stop loss on every trade as i am not a trader who always tardes it helps me to get rid ofmost of the big losses. Many people without using stop loss faces big loss. So i always convince others to use stop loss.

[Abubakar56]

From the little experience am having in trading I believe stop lose is very important because nobody can predict the market nobody knows when a coin will pump or dump but to avoid lost of fund I believe using stop lose is very important because I believe is better to lose 5% of your fund than to lose 30% of your fund and also when a coin is dumping stop lose is really helpful incase u are not online it will sell it automatically and you can buy back when the price is very low.

[azmirihaque]

Market is always uncertain. It can change positively or negatively any time. So real traders have different trading strategies. I think, using stop loss is one of the strategies. Our ultimate goal is to make profit from trade. So we have to try to avoid loss. I think, using stop loss is a very good idea in this case. Those who don't use this strategy can face uncertain loss.

[Mas Bro]

Stop loss is very important for short-term investments / day trading. Because the stop loss is to reduce your losses if the market goes down and you can buy it again at a cheaper price. Or you can trade with other coins to cover your losses. But for long-term investment, you don't need a stop loss, because it doesn't have any effect.