Re: The major reason why suicide traders don’t use stop loss
Stoploses very often leads to looses because in this unregulated market coins price can jump -20% in 1s to jump back to its backprice only to eat stoplosses.
But this is exactly how the market works and that is why the stop-loss orders are made, so that we don't blow up our accounts immediately but to blow that particular proportion we want to lose in a trade as stop-loss.
Imagine what would happen if the stop-loss are not in place and the jump happens?
Im talking about atacks on stoploses.
This scenerio. Imagine where would you sell if you would have stop-loss on it? On the f... bottom with 1/10 of your investment because you order will appear in orderbook after this big order which eat walls and will be realised last on the lowest price set by this guy who attack. Stop-limit could safe you from that but stoplimit wont protect you from this scenerio:
If those red candle was set by 1 huge sell order becouse your order will pop in orderbook after realisation this huge order without realising yours (your stop-limit price will be too high. Thats why its very hard and sometimes very risky to set stoploses on unregulated small market susceptible for stoploss atacks.
Whales also loves to eat stoploses because 90% of investors set it in the same place. Thats why when you are a whale you know execly where huge supply will apear. I bet that now 90% bitcoin traders have stoploss on one of those points : ~6050-6100 or ~5900-5950