Do you set stop-loss orders when you trade?
If you haven't used stop-loss orders yet, what is holding you back?
Let me give you an example. After hearing it, you will definitely start using stop-loss orders to manage your risk well, because in trading, risk management is of utmost importance. Just think, if you lose all your money or have three or four months of unsuccessful trading, what will you be left with?
A stop-loss is like the brakes on a car.
Imagine you are driving on the highway, feeling great. But suddenly, there's a sharp turn ahead. What do you do? You definitely need to hit the brakes.
Without brakes, you might lose control and crash. Trading is the same; if the market suddenly changes, a stop-loss can help you avoid significant losses.
Without brakes, you lose control and crash; without a stop-loss, you suffer huge trading losses. When the market is highly volatile, a stop-loss is your lifeline.
Once you've set a stop-loss, even if you incur a loss in a trade, you still have the opportunity to bounce back and your capital remains safe. If you see a good buying opportunity, you can jump back in and make some profits.
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