$ Avoid Rookie Mistakes: My Essential Stop-Loss Rule (Don't Trade Without This!)
Hello everyone from #BinanceSquare!
When we start in the crypto world, it's easy to become obsessed with gains and forget the most important thing: protecting our capital.
My essential rule, which I advise all beginners, is: NEVER MAKE A TRADE WITHOUT SETTING A STOP-LOSS.
🛑 Why is Stop-Loss Crucial?
1. Protection Against Unexpected Drops: The crypto market is volatile. An unexpected event can cause the price to drop 20% in minutes. The Stop-Loss is your safety net.
2. Emotional Management: It allows you to trade logically, without letting fear or greed take over. The loss is already "pre-programmed" and acceptable.
3. The 1-2% Rule: I only risk, at most, 1% to 2% of my total capital on any single trade. If the loss is hit, your account won't be drastically affected.
👉 How to apply?
Before opening any position (buy or sell), decide where the Stop-Loss will be placed. Ideally, it should be at a point that invalidates your investment thesis. If the price reaches there, your initial bet was wrong, and it's time to exit.
Don't let a small loss turn into a catastrophe. Protect your capital!
What is your most important risk management rule? Let us know in the comments! 👇
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