Navigating the world of crypto assets involves understanding the concept of supports and resistances, which are like the pillars of a bridge guiding your trading journey.

Supports represent price levels where buying pressure tends to overcome selling pressure, preventing the price from falling further.On the other hand, resistances are price levels where selling pressure tends to outweigh buying pressure, capping the upward momentum of an asset's price. Think of it as a ceiling that the price struggles to break through.

Buying near supports can offer a sense of security, as it suggests a potential bounce back from lower levels, while selling near resistances can provide opportunities to lock in profits or hedge against potential downturns. However, remember that these levels are not set in stone but rather fluid zones influenced by market sentiment and trading volume. So, while supports and resistances offer valuable guidance, staying adaptable and keeping a finger on the pulse of the market is key to making informed trading decisions in the dynamic world of cryptocurrency.

Be extra careful in buying near resistances or selling near supports. Be patient, look at your options, assess your risk, and always set a stop loss to keep your mind at ease.
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Why is setting a stop loss important?

Setting a stop loss is like charting a course on a voyage, where each sailor sets sail with a different appetite for risk.

For the cautious mariner, a tight stop loss of around 5-10% ensures a swift retreat at the first sign of choppy waters, safeguarding their vessel from significant losses.

Meanwhile, the moderate navigator opts for a broader range, typically between 10-15%, allowing for some leeway in the waves while still steering clear of treacherous storms.

Lastly, the adventurous seafarer embraces a wider berth, with stop losses spanning 15-20% or more, embracing the thrill of high seas while acknowledging the potential for greater volatility.

Regardless of the chosen course, each sailor sets their stop loss with a mix of prudence, daring, and a keen eye on the horizon, ensuring they can weather any financial tempest that comes their way.

You might be tempted to keep your gains running since the market is rising, but it is never a bad idea to take profits whenever possible. Remember, it is better have some than lose some!

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