A question many people have: 😕 Is placing a stop-loss order useless?? Is it automatically stopped out by the system at the lowest point??
Ethereum has been fluctuating up and down these past few days, and if you don’t set a stop-loss with at least two points, you simply can’t hold on. Many people are asking Sen Ge, I just went long on Ethereum, but the market quickly dipped.
I set a stop-loss for my long position at 2275, so why was I stopped out at the lowest point of 2260, losing several hundred U for no reason? Is this just to take advantage of retail investors??
Actually, this is because market stop-loss orders can slip during fast market fluctuations, causing the system to only stop you out at the lowest point. In such market conditions, it's better to use a limit stop-loss.
Personally, I am still bullish on Ethereum, and I wouldn't short it. The probability of recovering from a position against the trend is relatively low.
