In the crypto market, unexpected events or unusual news can cause sudden changes in market direction. Sometimes the market surges upward, which is great since we're trading in spot and can achieve our targets. However, if the market moves downward and triggers the stop loss during such unusual situations, here's what you need to do:
Don't exit the trade immediately.
Our stop loss is set for regular market conditions. When abnormal activities disrupt the market, they often result in temporary dips that recover quickly. In such cases, hold your position and wait for the price to return to the entry level and eventually hit the targets.
Patience is key. Sometimes this recovery may take a day, two, or even a week, but staying calm and trusting the process is essential. Remember, quick reactions during sudden market shifts can often lead to unnecessary losses.
Stay disciplined and follow the plan.
(To read Rule No.1 read the pinned post and don't forget to follow)