Stop-Loss and Take-Profit:⬆️⬇️A Simple Guide for Beginner Traders
Stop-Loss is a tool that automatically sells (or buys) an asset if the price reaches a certain level. Its goal is to limit your losses if the market goes against you.
Take-Profit is the opposite tool that automatically locks in profit when the price reaches the desired level.
Example:
You bought Bitcoin for $30,000.
You set a stop-loss at $28,000 (to ensure that your loss does not exceed $2,000).
You specified a take-profit at $35,000 (to lock in a profit of $5,000).
Both tools help manage risks and emotions. 🚀
