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13839551 No.13839551 [Reply] [Original]

What are stop losses and how do I use them to avoid getting fucked in the ass while trading?

>> No.13839565

>>13839551
Keeping your money out of crypto stops losses

>> No.13839591
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13839591

>>13839565
hmmm

>> No.13839645

bump for advice desu

>> No.13839652

>>13839551
Stop loses are not magic and do not guarantee that you can sell. On a few occasions I've been bog'd with the price shooting down straight past my stop loss only for it to activate and sell at a significant loss.
The best thing to do is take profits when you can and stop worrying about what you could have made if you times everything perfectly, because no one can do that on a consistent basis.
That said, they have a place and can save you in some instances. If you buy in before a break out, set a stop loss so that it's sell as quickly as possible if it breaks out in the wrong direction, but don't rely on then as your only loss protection strategy.

>> No.13839655

>>13839551

It's a stop that prevents further loss.

>> No.13839668

>>13839652
are they useful when you aren't trading, when you're sleeping or whatever?

>> No.13839703

>>13839652
>On a few occasions I've been bog'd with the price shooting down straight past my stop loss only for it to activate and sell at a significant loss.
Can't you just set the limit a few sats lower than the stop?

>> No.13839863

>>13839703
If you have an option to do a stop limit order than sure. Problem is youre still holding at a loss now. I probably wouldn't care to use a stop order at all in something in value investing in because who cares about short term price movements, so anything I would be using a stop order with would probably be a trade rather than an investment. I don't want to get cocked into holding something I just wanted to trade because I don't necessarily have confidence in it making money over time. Just be careful out there.
>>13839668
That's the exact time to use them, but also the exact time to get cucked. If your orders won't execute premarket and the price gaps down premarket it doesn't help much. Bottom line is setting some kind of stop loss on a trade is best practice, but you'll get into trouble if you think it makes you perfectly safe. Only time I would say not to set one at all is on a long term investment with divvies so you don't accidentally sell and miss out on the divvies.