How do I set up a STOP-LOSS? Can I even do that on Binance?
I get this question a lot lately so I figured a little guide can be helpful.
I am not saying you SHOULD use a STOP-LOSS but it's an useful thing to have in your arsenal of tools for trading especially. The name is also a bit misleading, it's really just conditional trading that is mostly use for STOP-LOSS but can be used for a lot of other stuff: profit taking, re-entries...You name it! (and anyway, I will name it in this post so no need to make an effort ).
Let's get on it! Woo-hoo!! Learning is fun!!
First: Bittrex.
You need to select the type of order: "CONDITIONAL".
Then you chose the condition that will trigger your order. Essentially you pick a price at which you want your order to be placed.
You will then have a few option for the conditions.
Let's see it in action. THE GOOD OL' SHOW DON'T TELL!.
Let's say you bought STEEM at a btc price of 0.0004600. You think thta if it goes under 4400 you must sell. So you set a stop loss there.
In your mind the thing is: If the price is under 4400, sell all my steem.
In bittrex is;
condition: less than: 0.0004400
order: sell all steem
at price: 0.0004400
It looks like this:
Under "total" you see how much you will receive.
Once you keep "place order" Bittrex will confirm and please always check!!! You don't want to put the condition "greater than" and sell at 4400 when the current price is 4600. Not that anyone ever did that...ever. Yeah, no.
You can play with conditional in many ways. You can for example place your sell order only after a certain price, this way your order won't appear in the book so traders won't know it's there and you won't affect their decisions.
Or, you can place BUY orders with conditionals.You can buy a coin only after the price dips under a certain price, or only after it goes over a certain price. The options are limitless. Play with it!!
On Binance
Things are very similar but a little different on Binance.
The logic is the same but the syntax is a bit different. Imho, easier to use as it's clearer but some might not agree.
You will need to go to "STOP-LIMIT" tab in the order.
Notice that there's a different tab altogether not an option in the new tab!
Secondly notice THE NICE SMALL FEE! because Binance has 0.05% fee vs 0.25% On Bittrex.
Lately I sound like a broken automaton but JOIN BINANCE!!
Here the STOP is the conditional. When the price is whatever you say in STOP, it will place your order at the price you set in LIMIT. It makes a lot of sense.
What I like the most is that the confirmation message is very clear as well.
Like with XLM here:
It's very hard to mess it up.
I never could
cough cough.
That is it!
Ways to use this new tool will naturally manifest in your trading strategy now that you know how to use. I know this happened to me. First I was scared it will place my orders by mistake and lose coins then I got used to it and now I use it a lot.
One thing I notice is that you need to set a few stop losses that will hit to get used to it. We hate loss and it's hard to let the S-L just go down...however, it is part of the trading education.
Comment below with questions and feeback! Thank youuuuuuu!
A very important nuance, when you are putting a stop-loss. It's better to put a limit on a cheaper price than the stop is put at. If both values are equal or not very different then you can miss the trending fall and your order will never be executed. For example, you put a stop at $14600 and limit at $14595. When the price falls rapidly, the stop is triggered, your order is successfully put on the order book but the price is already $14570 in just a moment.
So it's better to sell for a bit cheaper price but not lose a lot of your money.
I totally agree. My experience is that usually the price will always swing back enough for your order to hit unless the coin is falling FAST in which case yes, better to be safe than sorry!
That's a great post @razvanelulmarin!
thanks for the tips! Resteemed!
I hope it helps ppl!
For sure it does!
The self irony is strong :))) I didn't know you traded coins, I've read posts that explain it's pretty stressful and most times you are better off hodling.
Oh, I don't really trade but I've learned that if you have some it's better to think of STOP losses too.
Whoever said that, it's a smart guy :D
yes. that WAS NOT IRONY!
Thank you for this. I lost some money because I didn't know hot to put stop loss :/
Who did not...
@razvanelulmarin, Absolutely brilliant points you giving me how to trading use STOP-LOSS function. Probably its greatest educative line. I'll study more about this post. Further clarification I'll save your blog. Thank you and Resteemed your post.
Glad to hear it helped!!1
However, I think unlike most forex platforms, you cannot set stop loss and take profit at once, because if there's a sudden price spike in both directions it's hard to tell which side has been triggered first.
I am not familiar with FOREX. But you can not do both at once that's for sure...
Beautiful
A friend of mine has issued a challenge, turn 20 GBP, 20 EUR, 20 USD or whatever your native currency it into as much as you can by playing with the crypto markets.
See more details here:
https://steemit.com/cryptocurrency/@rpettigrew/play-the-2018-crypto-challenge
Nice
Wooow! it is great post dear I like it and follow you because of your work
Damn! I've got a lot to learn in trading.
learning is fun!!
Like
Cool tip! Newbies from trading should read this kind of posts.
I do agree :P
Interesting post
Stop losses are always very important! Good insight @razvannelilmarin!
thanks for the information!!!i would like some extra tips for binance. [email protected]
distixos to binance den exei stop loss..alla gia mena to stop loss se stamataei kai apo parapano kerdi!!den to xrisimopoio pleon