The key to be successful in trading is how you manage your risk, How you stop losing more money. Making money comes after.
it's unfortunate to see that people somehow use Stop loss in futures trading but they leave their positions open in spot trading thinking that they will not get liquidated and the coin will recover eventually. Yes you will not get liquidated but you can get stuck in a trade for forever. And with this mindset you can miss so many other opportunities just because your money is stuck in a coin.
Trading is trading it does not matter if it's on spot or futures, you should always use a stop loss for your trades and this is what we will learn today.
How to use stop-loss in spot trading because there are so many traders who don't know how to use it.
Step 1:
it starts with obviously buying something so let's say you're buying $20 worth of $DOGS token at the market price of $0.00130
you just simply enter your amount and buy it.
STEP 2: Setting up your stoploss
To set up your stop loss go to sell side of that particular pair you want to set your stop loss, In this example we have DOGS token
Go to Sell side and then tap on "Limit" option as pointed in above picture.
STEP 3:
Once you tap on "Limit" you will see these options, Select "Stop Limit" option.
STEP 4:
You will see two options there to enter the price. Stop and Limit
In trading, when setting a stop loss, the "Stop" and "Limit" tabs refer to different parts of a "Stop-Limit" order. Here’s what they mean:
- Stop: This is the trigger price. Once the price of the asset reaches this level, the order is activated.
- Limit: This is the price at which the order is placed after the stop price is triggered.
For example, if you set a stop price of $100 and a limit price of $98, once the price drops to $100, a sell limit order will be placed at $98.
Setup your price where you want to put the stop-loss for your trade. I usually keep both stop and limit price same.
In Dogs example we bought it at $0.00135 and let's you want to set a stop loss at $0.0012, you will simply add the value in Stop and limit tab and then press the sell button.
STEP 5:
Once you tap on sell Binance will ask you for the confirmation. Read the description above. It says your DOGS will be sold once price dropped down to $0.00120 and that's exactly what you want to do.
The Final STEP
Once you sell it you will be able to see your sell / Stoploss order in your open orders.
This is how easy it is to set up a stop loss for your position.
Do not have a mindset that it's SPOT so it will eventually go up. That's just a hope and you should not be trading based on Hopes.
People also have this mindset that it's just a small amount so i'll just leave it open.
Respect every single dollar you have.
" If You Don't Respect $1,You Don't Deserve To Have $10,000 or $100,000"
Stay Safe and Keep Learning
