What is Stop-Loss? (explanation)

[tienda 8776]

On 10/16/2020 at 6:38 PM, odisseu said:

ı think a 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. 
 

Yes @odisseu also we can call it Stop orders are usually used fix or to limit potential losses to avoid or in case the price suddenly rises higher or drops. When we place the stop order we set two points an entry and exit price. Once the price will be surpasses the predefined two points entry or exit, the stop order convert to an instant order and will be executed.

[BullRunBit 2773]

1 hour ago, tienda said:

Yes @odisseu also we can call it Stop orders are usually used fix or to limit potential losses to avoid or in case the price suddenly rises higher or drops. When we place the stop order we set two points an entry and exit price. Once the price will be surpasses the predefined two points entry or exit, the stop order convert to an instant order and will be executed.

 

What you both talking about? 

@odisseu how "buy" can be stop loss please explain me?

And @tienda why you complicate when it's simple, why call it stop order when you can simple call it stop loss like tittle of topic?

 

I really dont understand you, I understand that you want to write more posts but why you complicate something which is really simple. And a lot of members write already that when they read topic they understand that trading "expression" (stop loss). Please if you dont have anything interesting or new which is not already written dont write anything try to find some other topic.

[tienda 8776]

2 hours ago, BullRunBit said:

I understand that you want to write more posts

You are wrong! @BullRunBit I m not here to write more post okay! and always I investigate before I send my post. About your topic before my participation I did the search about Stop loss and Stop order for this reason I am sure what I have written.

So I will repeat you STOP LOSS is like STOP ORDER... "Stop orders are usually used to limit losses in case the price suddenly drops or rises" means we can use stop order in buying or selling. In case you want to understand more about Stop order with examples, please check here: Bitstamp Faq Stop-order

[febriyana 934]

Nice guide. But in my opinion stop loss is like the bad weapon. Because if we always put stop loss in every trading, we like don't believe our strategy and analytic. Many times i put stop loss and get loss in the end. So for now i trading without stop loss. So what happen if the price going down? I will going to buy more until the price going up again. I will sell it if more than average price my buying price.

[BullRunBit 2773]

On 10/31/2020 at 7:33 PM, tienda said:

You are wrong! @BullRunBit I m not here to write more post okay! and always I investigate before I send my post. About your topic before my participation I did the search about Stop loss and Stop order for this reason I am sure what I have written.

So I will repeat you STOP LOSS is like STOP ORDER... "Stop orders are usually used to limit losses in case the price suddenly drops or rises" means we can use stop order in buying or selling. In case you want to understand more about Stop order with examples, please check here: Bitstamp Faq Stop-order

Is this what you talking about:

In this topic I'm talking about just about cut your loss not about function on exchange.

And I dont want to write everything again.

20 hours ago, febriyana said:

Nice guide. But in my opinion stop loss is like the bad weapon. Because if we always put stop loss in every trading, we like don't believe our strategy and analytic. Many times i put stop loss and get loss in the end. So for now i trading without stop loss. So what happen if the price going down? I will going to buy more until the price going up again. I will sell it if more than average price my buying price.

Agree, if you believe in that coin/token.

But if you are day trader you will probably use stop loss.

But again I agree with you that if you believe in some coin/token and if price go down that you buy more that coin/token and when price recover you will have bigger profit.

[Khan 1414]

On 5/4/2020 at 5:10 PM, scorpiali said:

This a good feature in every exchange because they can protect your money to lose value and stable them in some price,But still Yobit exchange dont have this feature and more ,they really should work for that

Sometime SL/Stop Loss prove better for your trading and sometime it will not as its good and recommended way to use the stop loss but I will prefer to sit in front of the system while trading.

[scorpiali 5626]

5 hours ago, Khan said:

Sometime SL/Stop Loss prove better for your trading and sometime it will not as its good and recommended way to use the stop loss but I will prefer to sit in front of the system while trading.

You can use the stop lose if you do have a time and you can't stay in front of the chart to see the price and you put it to secure your funds because the price is moving to much,but if you have time you can not use it

[GanBin 705]

On 11/10/2020 at 10:35 AM, HanSerb said:

Stop loss is accurate at times, but the last time I used it, my bitcoin converted to tether but later the price of bitcoin started to increase. I lose and get the price increases above $15000. We should be careful to use stop lose carefully because it can also result to loss. 

Nobody is perfect, just learn more about trading and make use of RSI indicator before using stop loss, stop loss is good, I understand what you commented, but stop loss is really helping many traders. 

[Jromz 2158]

Great and really straightforward explanation about stop-loss. Actually, many traders end up losing substantial amounts of money for not using this useful risk-management tool. Many other do use it but don't stick to it as the price get close to the price triggering the stop-loss. This is a common mistake driven by the feeling that the market might recover, and we can eventually get some profit. Definitely, using and adequately managing the stop loss can save ourselves from quite some headaches. 

Edited November 14, 2020 by Jromz
repeated word

[Pranto1 40]

And the great weapon of our business to prevent any loss.  If we set a stop loss then and if the price of the currency goes against our order or business and when the price moves in the opposite direction then the trigger damages to help us stop our trade.

[Yomose 3704]

5 hours ago, Pranto1 said:

And the great weapon of our business to prevent any loss.  If we set a stop loss then and if the price of the currency goes against our order or business and when the price moves in the opposite direction then the trigger damages to help us stop our trade.

Stop loss is not used to prevent losses fully, you will still have to lose a little when the market price of the coin is dropping and dropped to the price you set to sell the coin, still there will be little loss but further loss will be prevented. 

[Abuzar hashmi 544]

One of the main reasons for stop loss is that you are always waiting for the luckk that maybe today is your day and you can make a huge profit and this is the thought that overwhelms you. When you buy an share and Can't decide whether to sell it or wait any longer and when suddenly the market rate goes down than there  stop loss occurs and that relationship directly depends on you how you can avoid it.

[BullRunBit 2773]

59 minutes ago, Abuzar hashmi said:

One of the main reasons for stop loss is that you are always waiting for the luckk that maybe today is your day and you can make a huge profit and this is the thought that overwhelms you. When you buy an share and Can't decide whether to sell it or wait any longer and when suddenly the market rate goes down than there  stop loss occurs and that relationship directly depends on you how you can avoid it.

Interesting photo, but why not to sell when price is up?

Why to wait and use stop loss order?

That "dots" can be your stop loss for example, and if price touch that point then you sell that coin/token.

But if price go up for example 10%-20% you can to sell and dont need use stop loss.

[habib ur Rehman 207]

Stop loss is rally great feature in trading and every exchange provide this feature for their traders, because they don,t face huge loss. Trading is not easy and without this stop loss feature we loss our funds in few hour. stop loss can prevent you lose a lot of money. Always keep in mind.

[Shubham kakade 556]

Stop loss is the management of your loss it is advanced order to sell an asset when it reaches a particular price point.it is using to limit loss or gain in trading.

The concept can be used for short term as well as long term trading this is an automatic order that investor place with their platform or broker.

[yulitzacalvete 1366]

On 3/5/2020 at 4:51, BullRunBit said:

La explicación simple de la función Stop-Loss es que usted reduce sus pérdidas si el precio va en la dirección incorrecta, y que reduce sus pérdidas utiliza la función Stop Loss.

Ejemplo:

Compro Bitcoin a un precio de 8,700 $ y configuro mi stop-loss en 8,000 $ que es más del -8% de stop-loss de mi precio de compra y si el precio baja hasta los 8,000 $, lo venderé por ese precio y si el precio baja más Reduciré las pérdidas y tal vez compraré a un precio más bajo, etc.

 

La función Stop Loss consiste en reducir las pérdidas si cree que el precio bajará.

Una explantación más (imagen):

Si tiene alguna pregunta, pregunte libremente aquí.

This since it was implemented greatly reduced losses, this is the greatest thing that exists to be able to trade with more security without being afraid of losing a lot of money.

[mias15a 1102]

On 03.05.2020 at 11:51, BullRunBit said:

Simple explanation of function Stop-Loss is that you cut your loss if price go in wrong way, and that you cut your loss you use stop-loss function.

Example:

I buy Bitcoin on 8,700$ price and set up my stop-loss on 8,000$ that is over -8% stop-loss of my buying price and if price go down till 8,000$ I will sell for that price and if price go more down I will cut loss and maybe buy at lower price etc.

 

Stop-loss function is that you cut your loss if you think that price will go down.

One more explantation (image):

If you have any questions freely ask here.

Nice guide, even though i knew it before. Honestly, you could have unite Stop-loss and Take-profit orders in one topic, to give more information for the newbees.

[Dorjoy12 8962]

Usually trader use stop lose feature to get safe from big lose in trading because sometime our price prediction go in wrong way which can give us huge lose so if we use the stop lose feature then easily pass the huge lose and buy more coin when it dump as you said..  But some time trader forget to use it and get lose  money .. 

[anlarar 2]

A technique used by investors in the stock market and a very successful technique protect you from losing money.

[mohamad.joumar 4]

Thank you my friend

For this stop-loss parameter I don't have a good background about it

Is there a way to help me understand it more?

[Omar98 916]

This function is something cool for those who do not have enough time to keep up with the daily news of the charts and the currencies that they are trading with, But in my opinion, I think sometimes when you monitor the movement of the the signal and you understand it very well you might prefer to not put that function in order to not stop buying or selling even if you might lose more but you are sure that you will make a better profit.

[Maya20 1048]

The stop loss order was developed to reduce the trader's losses in currency trading and various financial instruments.  It is good to have this tool, because sometimes you are unable to sit in front of the computer and observe it, and there is also a simple and important reason is that you cannot predict the exact future, it is good to have a stop loss order.

Edited November 30, 2020 by Maya20

[cango039 19]

As far as I know, stop loss is a system where a purchase is placed at a lower price than the specified price, and the sale is executed after buying at a certain price. This system is made to avoid much damage. Where to put the stop loss looks at the person's ability and knowledge.

[huesca123 946]

@BullRunBit A stop loss is a set price point on your chart, where you determine where you get stopped out or close your trade, automatically. You can use a stop loss for a buy / sell ( long / short ) trade. As soon as your trade is live, you should place your stop lose ( S / L ). You should also use a Pip Size Calculator to help you determine your entry price, take profit & stop loss. Google - Baby Pips - Pip Size Calculator.

[Edwinvicky 819]

On 5/4/2020 at 1:10 PM, scorpiali said:

This a good feature in every exchange because they can protect your money to lose value and stable them in some price,But still Yobit exchange dont have this feature and more ,they really should work for that

Yes it is a great feature in every exchange, it helps traders cut lose automatically, I wish yobit has such feature because i have not seen such button in yobit.