The recent sharp decline in Bitcoin from $89,940 to $85,229 serves as a stark reminder for traders to always implement solid risk management strategies, including setting stop-loss (SL) and take-profit (TP) levels based on the fundamentals of their investment. Trading without these safeguards—driven by greed or an overconfidence in the market—can significantly damage your portfolio and potentially lead to missed opportunities. It’s crucial to avoid emotional decision-making and instead focus on disciplined, well-thought-out trading plans.

To navigate market volatility effectively, traders should always:

1. Set Stop-Loss and Take-Profit Orders: These tools help protect your portfolio from excessive losses while securing profits at predetermined levels.

2. Diversify Your Investments: Avoid putting all your capital into a single asset. Diversification reduces risk and provides more stability in unpredictable markets.

3. Stay Informed: Keep up with market trends, news, and global events that can influence the price of assets like Bitcoin. Knowledge is a trader's greatest asset.

4. Practice Patience: Great traders don’t chase every market movement. They wait for the right opportunities and execute trades based on analysis, not emotion.

5. Learn from Each Trade: Whether you make a profit or loss, each trade is a lesson. Continuously evaluate your strategies and adapt based on your experience.

By following these best practices, traders can manage risk more effectively, preserve capital, and work towards becoming proficient in their trading approach.