stop-loss
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CoinQuest
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Bullish
Mastering Stop-Loss Strategies: Secure Your Trades Like a Pro on Binance🩸
A stop-loss is a powerful tool in trading, designed to limit potential losses in case the market moves against your position. Here's a beginner-friendly explanation based on the examples in your image:
What is a Stop-Loss?
A stop-loss is a predetermined price level where you exit a trade to avoid further losses. You can place it in different areas depending on market structure and price action. Below are the key scenarios where stop-losses are applied:
1. Behind Supply and Demand Zones
Supply Creation: Set the stop-loss slightly above the supply zone (area where selling pressure exists).
Demand Creation: Place the stop-loss slightly below the demand zone (area where buying pressure exists).
2. Behind Gap Retests
Bearish Gap Retest: After a gap is filled, place the stop-loss above the gap.
Bullish Gap Retest: Similarly, place the stop-loss below the gap after a bullish gap is filled.
3. Behind Structure Retests
After a breakout, wait for a price retest near the breakout level. Place the stop-loss beyond the level where the structure (support or resistance) is invalidated.
4. Liquidity Runs
In scenarios of liquidity runs (fakeouts), where price spikes to grab liquidity before reversing, you can set stop-loss beyond these fakeout zones.
5. Continuation Patterns
Behind Supply Continuation: Place the stop-loss above the supply zone after a new low is made.
Behind Demand Continuation: Place the stop-loss below the demand zone after a new high is established.
Key Tips for Beginners on Binance
1. Set Risk Levels: Risk only 1-2% of your total portfolio in a single trade.
2. Use Conditional Orders: Binance allows you to automate stop-loss orders to exit trades quickly.
3. Analyze Market Structure: Understand whether you are in a trending or ranging market to set effective stop-loss levels.
4. Practice Risk-Reward Ratios: Aim for trades with at least a 1:2 risk-to-reward ratio to ensure long-term profitability.
A stop-loss is a powerful tool in trading, designed to limit potential losses in case the market moves against your position. Here's a beginner-friendly explanation based on the examples in your image:
What is a Stop-Loss?
A stop-loss is a predetermined price level where you exit a trade to avoid further losses. You can place it in different areas depending on market structure and price action. Below are the key scenarios where stop-losses are applied:
1. Behind Supply and Demand Zones
Supply Creation: Set the stop-loss slightly above the supply zone (area where selling pressure exists).
Demand Creation: Place the stop-loss slightly below the demand zone (area where buying pressure exists).
2. Behind Gap Retests
Bearish Gap Retest: After a gap is filled, place the stop-loss above the gap.
Bullish Gap Retest: Similarly, place the stop-loss below the gap after a bullish gap is filled.
3. Behind Structure Retests
After a breakout, wait for a price retest near the breakout level. Place the stop-loss beyond the level where the structure (support or resistance) is invalidated.
4. Liquidity Runs
In scenarios of liquidity runs (fakeouts), where price spikes to grab liquidity before reversing, you can set stop-loss beyond these fakeout zones.
5. Continuation Patterns
Behind Supply Continuation: Place the stop-loss above the supply zone after a new low is made.
Behind Demand Continuation: Place the stop-loss below the demand zone after a new high is established.
Key Tips for Beginners on Binance
1. Set Risk Levels: Risk only 1-2% of your total portfolio in a single trade.
2. Use Conditional Orders: Binance allows you to automate stop-loss orders to exit trades quickly.
3. Analyze Market Structure: Understand whether you are in a trending or ranging market to set effective stop-loss levels.
4. Practice Risk-Reward Ratios: Aim for trades with at least a 1:2 risk-to-reward ratio to ensure long-term profitability.
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#btc #VVVonBinance #TrumpCryptoOrder
Guys who are awake, buy strong at $BTC in the futures!!! 😍😍😍
My #Stop-loss is at 101,000, am I at risk???
Guys who are awake, buy strong at $BTC in the futures!!! 😍😍😍
My #Stop-loss is at 101,000, am I at risk???
#stop-loss means you're the target
instade of stop-loss you should buy more.
2% or 10% you won't liquidated i know,but I'm not that kind of guy. i made form 0.12$ to 160$ in just 1 hours but i also lost many times,and it's ok
instade of stop-loss you should buy more.
2% or 10% you won't liquidated i know,but I'm not that kind of guy. i made form 0.12$ to 160$ in just 1 hours but i also lost many times,and it's ok
I'll teach you the art of trading through #technicalanalysis
#Launchpool #ETH
(A course worth 5K for free.)
post 3 of 3
(6) Stop Loss criteria:
- Positional: 15-20% stop loss
- Swing: 5-8% stop loss
- Intraday/Scalper: 1-2% stop loss
(7) Capital allocation:
Position sizing based on risk
management!
- Positional trader: 5-10% per stock.
- Swing trader: 20-25% per trade.
- Intraday trader: 10-15% per trade.
(8) Targets with favorable risk-reward ratios:
- Positional: 1:3 risk reward.
- Swing: 1:2 risk reward.
- Intraday/Scalper: Shoot for 1:1 risk
reward.
Focus on good risk-reward ratios for
successful trading.
(9) Trailing #stop-loss and partial profits booking:
- Move your stop loss to breakeven after
achieving a 1:1 risk-reward ratio.
- Secure 50% profits at 2:1 R:R, let the
remaining ride with a trailing stop using
50-EMA.
(10) General market conditions:
DMA - Day moving average
- Confirm 20 DMA > 50 DMA,
If thats the case, stay invested.
and Thats the end, #DYOR before investing in any assets.
#Launchpool #ETH
(A course worth 5K for free.)
post 3 of 3
(6) Stop Loss criteria:
- Positional: 15-20% stop loss
- Swing: 5-8% stop loss
- Intraday/Scalper: 1-2% stop loss
(7) Capital allocation:
Position sizing based on risk
management!
- Positional trader: 5-10% per stock.
- Swing trader: 20-25% per trade.
- Intraday trader: 10-15% per trade.
(8) Targets with favorable risk-reward ratios:
- Positional: 1:3 risk reward.
- Swing: 1:2 risk reward.
- Intraday/Scalper: Shoot for 1:1 risk
reward.
Focus on good risk-reward ratios for
successful trading.
(9) Trailing #stop-loss and partial profits booking:
- Move your stop loss to breakeven after
achieving a 1:1 risk-reward ratio.
- Secure 50% profits at 2:1 R:R, let the
remaining ride with a trailing stop using
50-EMA.
(10) General market conditions:
DMA - Day moving average
- Confirm 20 DMA > 50 DMA,
If thats the case, stay invested.
and Thats the end, #DYOR before investing in any assets.