The Seatbelt of Crypto Trading: Why You MUST Use a Stop-Loss
You wouldn't drive a car without a seatbelt, right? In crypto, your Stop-Loss is that essential safety feature. Yet, so many people refuse to use it and end up losing way more than they should!
What is a Stop-Loss (and why is it your best friend)?
A Stop-Loss is simply an automated order you place with your broker (like Binance) that says: "If the price of $BTC drops to [X amount], sell my position immediately!"
It is designed to protect your capital and kill the emotion:
It Stops the Bleeding: You pre-determine the maximum amount you are willing to lose. Say you are down $100 on your $ETH trade, the Stop-Loss hits, and you are out. That's way better than watching that $100 turn into $1,000 because you were "waiting for it to recover."
It Kills the FUD: Once the Stop-Loss is set, the emotional burden is gone. You're prepared for the worst-case scenario and can walk away from the charts.
The Golden Rule:
When you enter a trade for $BNB, you must know two things immediately: Your Entry Price and Your Stop-Loss Price. If you don't know your exit, you're just gambling!
Confession time: Do you always use a Stop-Loss, or do you "hope" it will recover? Tell me below
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