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Mastering stop-loss and take-profit levels is your key to smart investing.

But what are they?

Stop-loss and take-profit levels are essential risk management strategies that should be considered, especially in your short-term trading plans.

🤜 Stop-Loss Orders:

A stop-loss is an order you place to exit a position if the market moves against your plan.

It helps you avoid losing a large portion of your investment by setting a predefined exit point.

Once set, the stop-loss order executes automatically at the pre-set level, minimizing potential losses.

🤜 Take-Profit Orders:

A take-profit is a standing order to exit a profitable trade once an asset price hits a specified level.

It helps you safeguard your gains and ensures you exit the position positively.

Like stop-loss orders, take-profit orders execute automatically at the pre-set levels, locking in profits.

🤜 Placing Orders:

You can use support and resistance levels, moving averages, and market sentiments to place stop-loss and take-profit orders.

Establishing these levels is integral to risk management, particularly given the volatile nature of the crypto space.

It's advisable to always consider these strategies in all your short-term investment positions.

Entering positions without stop-loss and take-profit strategies is risky, as your positions may continue their trends negatively or positively. Applying these strategies appropriately helps manage risks and secure profits.