Post
Topic
Board Trading Discussion
Re: Stop Loss, A life saver or a evil?
by
suzanne5223
on 23/01/2020, 18:21:21 UTC
Hello,

I had this question in mind, since many of my trades with an adjusted stop loss got triggered, but then the market goes in the direction I wanted, but since it got triggered basically im out. I know this is due to big fishes messing around.

What do you guys think, is stop loss something or, or not so good?

It's just depend on how we use it, for me ppersonally it helped a lot with my trading style, i always place a stop loss whenever i entered a trade because i won't waste my time holding coins that already crashed. it's just the same with a knife, people could do cut fruits with it but they also could but their fingers by doing it.
It is indeed helpful for traders who don't want to deal with bigger amount of loss when they are trading. When I was just getting started on trading, I used to think that I can manage the risk by myself and I do not need stop losses because I am already a good trader but the market turn against me and it gave me a lot of losses and it made me realize how important is the stop loss to avoid getting too much emotional and just sticking with your game plan.
You are not the only one who ever feels that you are very good at trading, many people are always arrogant about their talents, they really have the talent to be the right thing but they don't know that talent is always a double-edged sword, arrogance is always accompanied by subjectivity, never putting a backup plan as their failure in trading, they only understand when they have failed. Stop loss is the best backup plan to correct our mistakes, sometimes it may not work as expected but at least it won't let things get out of our reach
Stop loss could be the best back up plan to correct ones mistakes and could also be a disaster (path of making huge loss) either if use at the right moment.
Samething applied with talent and arrogant which i believe could be the best back up plan if use at the right moment.