Friends, here I leave you how to use a stop-loss. For traders, knowing when to exit a trade is as important as knowing when to enter.

A well-planned exit strategy can help you protect profits, minimize losses, and reduce emotional decision-making. These are particularly useful during volatile market conditions.

A stop-loss order automatically closes a trade when the price of an asset reaches a specific level. As the name suggests, stop-loss orders are designed to limit potential losses in case the market moves against your positions. They are an essential tool for proper risk management.

How to use stop-loss orders

Percentage-based stops: Set a stop-loss at a specific percentage below your entry price. For example, if you buy Bitcoin at $40,000 and set a 5% stop-loss, your trade will close if BTC drops to $38,000.

Technical stop-loss: Place your stop-loss below a support level or a significant moving average. For example, if BTC is trading above the 200-day moving average at $37,000, you could place your stop somewhere below $37,000.