Do you still rely on stop loss?

Check this out before you pick yes or no. I came across a post and noticed a trader who seems pretty patient and might not be using stop losses. It’s different from a lot of folks who don’t even trade but keep insisting everyone should use stop losses, no matter what their strategy is. Plus, we have those 85% of traders who end up losing, often using high leverage, telling others to set stop losses. Personally, I think not every trading strategy needs them. The best ones, which are more about patience, usually don’t require stop losses, although the gains might come slower and steadier. So here's the question: If you've got $1000 in a derivatives trading account and you’re only using $200 (at most) which is 0.2x leverage to trade daily, focusing on Bitcoin or something less volatile like oil, natural gas, or gold… would you still go with stop loss?

I think we are mixing things up here. You can trade with or without stop loss, it's your choice and also depends on your plan. Of course, you don't necessarily need a stop lose for this set up you just mentioned. 0.2x is conservative and you don't need a stop loss for liquidation risk. But you know, you still need to plan your exit otherwise, your patient may become stubborn. I agree with you, stop loss work fine for gamble traders that use high leverage to protect themselves from liquidation in a short time. But we should know that people lose money on trading due to lack of plan, it has less to do with using stop loss or not. So, no I will not use stop loss for this set up trading less volatile assets.

Stop loss is valid for any trading asset, it only depend on the trading system and plan of the trader. and personally, I don't trade without it. The way most of you guys handle your leverage and lot size on exchanges is not the way I handle mine, and I believe many traders too. As some would call leverage 20x or more is bad, my settings with even 100x leverage could still amount to the same low risk eventually. How do I do it? I always use stablecoin as my base coin, so even with high leverage chosen, my risk could be as low as 0.02 lot size in Bitcoin, or less, depending on what I want. Using this calculation, I can adjust the less volatile market with a higher lot size. However, if I choose to maintain a low risk, I will still use my stop loss. The only difference will be a higher value that will be difficult to reach.

Patient trading you mean long term hold/investment or something? If that's the case, you really don't need to put stop loss but if you are referring to normal trades it's actually advisable to put stop loss but then again it really depends on the trader itself but personally for me, it's one of my requirement that I need to have stop loss on my positions as it shows my risk and reward ration, which also will tell me if that position is worth it or not because if the R:R is not even 1:2 then for me it's not a good setup. So for me, they all are part of my strategy and if one is missing, then the strategy is not complete. So it really depends on the trader's strategy.

I'm practically trying to make sense of your post, because your sentences are too long. I'd advice that you use shorter sentences to convey your ideas in a clearer manner. Secondly, I don't see how you could tell a trader not to use stop-loss or even insinuate that stop-losses negate the principles of business. Granted that there are situations where the trader may not need a tight stop-loss, say low leverage swing or position trading but even at such instances, the trader must apply other risk management measures which is what I think you errorneously termed 0.2x leverage. That is common sense. The crux of the matter is that in trading, risk management is standard practice that should be encouraged and not disparaged. How would you like to know that your asset manager is oblivious of risk management practices or even ignore them, especially when you do not have funds big enough to withstand massive drawdowns?

No one made it a must to trade using stop loss. You can decide to create your own strategy from knowledge you have with someone else's and not use stop losses, it depends on you..and beside, stop losses and take profits only came Into existence recently. In the past you have to wait for your trade to cut them in loss or profits manually. No body forced you then not to cut your losses short. Stop loss came into existence with the need where traders had to leave their screens and do other things. Without stop loss order, you will have to be glued to your screen while another part of your normal life will be lacking behind. If you don't watch the market closely, you will return and meet that your capital had been blown away and nobody wants that...

Same goes for me stop loss is surely an important part of my set up and it does save me from alot of losses that ain’t meant to be.  Stop loss at times does depends on the trader, some traders doesn’t not like applying stop loss to their set up but some trader takes it so important so they should avoid some high risk and loses.  When trading if I don’t apply stop loss to my set up I do use to feel uncomfortable and I feel my set up isn’t complete yet. With stop loss I have that total peace of mind knowing that my entry would later end up at take profits or stop loss which I’m totally save with either both cause I’m ready to risk what I can afford to lose.

Based on your explanation exactly risk trade at future trading and really need use stop loss, avoid from liquidation and I think stop loss can help and you have chance recovery back your loss if have braveness using stop loss. Difference when trading at spot and have decision for long term holding don't worry without cut loss your assets and capital keep secure from liquidation but trough leverage trading don't forget always use stop loss although loss few percent still have capital left and open back new position with more lower price. Stop loss feature most require for leverage trader if won't receive liquidation notification sending to their email, safe your assets indeed few percent left than not using stop loss all your capital get liquidation.

That leverage (0.2x) used which is the $200 you are actually risking is already your stop loss in my own perspective in terms of stop loss because this is the amount you can afford to lose, yes you might be right about people who actually use stop loss sometimes are people trading with large leverages but then it is not all. They are actually people who also trade not large leverages but also use stop loss and it is to actually just just open a big position size and then set a stop loss at an amount you can afford to lose. But using this small leverage and small position size this is same as setting a stop loss

You're definitely correct that not all trading strategies require a stop loss, but learning to trade without a stop loss may not be in your best interest, especially as a newbie with an interest to make profit and not losses. Some capital is not just enough to trade some volatility, and you trying with such is increasing your risk and chances of losses. If you trade with a good sum, you will be able to set a comfortable stop loss at an amount you are okay to lose, but of course you have to be sure of your trade because the intention is for trades to hit TP and not SL.

Stoploss is a very important tool. One strategy I use while trading is that when I see that the coin I buy is starting to increase, I set Stoploss at a small profit and try to hold it for a long time because those prices can increase a lot, but if for some reason the price is down, then I don't have to lose. Because even after being in profit, if there is a loss, it is difficult to accept it. So, at least I don't have to fall into loss, that's why I use this kind of strategy. And I set Stoploss at 20% of my trading capital so that I don't have to lose more than that.

I disagree, I would use it. If you are doing something that does not require stop loss and risking it all, then you are already making a big mistake. All those people who lose money trading should realize that if they did something that could benefit from a stop loss, they would have been fine about it. I mean remember, there were many people who lost millions in trading, and if those guys did have stop loss, they would have cashed out long ago, and would not face such drastic losses. I understand not everyone wants to use it, they want to wait but then it becomes not a trade, but an investment. If you stop using stop loss, and willing to take the hit for six months and wait for it to recover, that's not a trade, that's investment and that's also very good but a different thing.

Stop loss is a better part of risk management protocol to employ in trading mostly when it involves large capital or high leverage trading like derivatives. It's better to acquire assets in the spot market and sell it at a right time of price pump instead of doing so on a derivative account without any stop loss. A trader would obviously spend more on fees and face the risk involved in using a CEX exchange while trading derivatives as in comparison to a spot trader selling their assets upon sending it from their secured wallet. Any trader who trades high leverage is very impatient in my view and besides using stop loss as a way to avoid incurring minor or major loss, the best bet is to apply risk management protocol of delayed trading, until it feels right by analytics tools and instinct to know where best to channel your funds.

I think traders have different reasons for not using SL, but they keep their trades isolated rather than cross-leveraged. With isolated trades, you only risk the margin amount; if you liquidate, you can only lose that amount. However, if you are lucky or enter at the right spot (as you mentioned, patience is key), you have a chance to hold it and make a good profit while holding it for the long term, but with lesser leverage, you can only gain a slow and low profit, but the risk of being liquidated is far. But the problem with holding a position for long is you need to pay funding fees. Funding fees are charged every 8 hours, but I think with Bitcoin it won't affect much because they always have very low funding fees compared to shitcoins. In my experience, I don't affect much with the funding fees; I am only a mid-range trader. I don't trade to hold for long, but I also don't hold a position for shorter. However, one of my strict rules is to use SL; if the market takes me out, I accept my losses, meaning I have made a mistake I did that needs to be reviewed based on my entry conditions and rules.

This is true but it's a way to protect ourselves from deep losses. It is not required to use it at all times. But if you're a seasoned trader, you know that this is going to be your protection for how easy it is to setup. Because when you have it and you're away from the market or you're somewhere which you can't monitor your trade, once it triggers and it hits, you're safe and you'll not be losing more than the amount you set for that stop loss.

With trading, in any trading markets from Spot, margin to futures, using a stop loss order or a stop limit order is a mandate because such orders are vital in protecting your trading capital against sudden and severe market price movements which can cause big loss in spot trading or liquidations in margin and futures trading.

For me, my personal preference, I still would use stop loss. Not because the position size is huge, but it's just to protect my trade, just in case of uncertainty. Stop losses are less about leverage and more about keeping bad trades small and controlled - for me, this is the reason why I will still use stop loss on this scenario, that's how I trade.

This don't need stop loss, the market won't magically do 5x and liquidate you if you are shorting and you won't get liquidated even if BTC price turns to zero if you are longing. It's true that there are scenario where stop loss is unneeded, stop loss best used when we are trading on curve and by that is trading on 1m - 5m time frame with high leverage.

Depend on the situation, if the market situation moving fast, I will use stop loss and watch the market closely but if not, I will not using stop loss and prefer to wait and open the app occasionally. But if you are worry if situation changing, you can use stop loss so you will not miss something related to the situation. Using high leverage will be too risky so you need to use stop loss to prevent the losses.

It depends on the trading strategy we use. If we’re swing trading, we don’t always need a stop-loss. Unless there’s an event that could cause the market price to drop drastically, like when Bitcoin once fell 20% in just over a week. So what I mean is, sometimes if a strong support level has been broken and we know further declines could occur, I think it’s okay to set a stop-loss. Because we can re-enter the market after the decline ends and then recover from the loss. Because sometimes not setting a stop-loss and waiting for the price to move back in the direction we want can actually make us feel anxious during that wait. So personally, I use stop-losses for specific situations. However, if the market looks healthy with no particularly strong fundamental news, then a stop-loss isn’t really necessary.