IMPORTANCE OF STOP-LOSS #STOPLOSS
A lot of people losing their money in this crypto correction and downtrend (alts have indeed crashed) are those with high leverage, wrong entries with no Stop-Loss, poor DCA strategy and of course due to FOMO.
Crypto market is extremely volatile and unpredictable. What strategies do you use when market crashes? What is your risk management? Or do you only expect to put money and expect it to magically double?
When opening a position, just dont think about profits, think about loss you can incur and use STOP-LOSS on all your position to save yourself from getting liquidated.
Few basic points on how to use Stop-Loss:
👉Determine Risk Tolerance: Decide the maximum loss you can afford on a trade.
👉Set Stop-Loss Level: Place the Stop-Loss at a price level that aligns with your risk tolerance.
👉Use Technical Analysis: Set Stop-Loss based on key support/resistance levels or technical indicators.
👉Adjust as Needed: Move your Stop-Loss to lock in profits as the trade moves in your favor.
👉Consistent Usage: Apply Stop-Loss to every trade to protect your capital.
👉Avoid Over-tightening: Give your trade enough room to avoid premature exits due to minor fluctuations.
Trading without a Stop-Loss is like going bungee jumping without the cord—it's only fun until you realize you're in free fall!