Really good post, informative as always.
You said "a bearish market is a perfect example on why traders use stop-losses". That is only partially true. Of course, stop-losses seem like a good thing to, well, prevent losses but they are actually the reason behind posts of those heavy short-term crashes.
When the price goes down, stop-losses start to activate and perform market sells, bringing the price down even further. They are like reverse market-depth, they take liquidity away from an order book, before a trade is even executed.
I also don't really understand why traders would use them. No one would advise you to sell on the dips, right? But when it is automated, it is suddenly ok.
If you have a different opinions than me, please correct me, I would love to hear it.
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