I've been using trailing stop losses for a few years now, and they've saved me a lot of money. A trailing stop loss is a type of stop loss that automatically moves up as the price of an asset increases. This means that I can lock in profits as the price of an asset goes up, without having to manually adjust my stop loss.
I've seen a lot of volatility in the crypto market over the years, and I've been grateful for trailing stop losses on more than one occasion. For example, I bought some #bitcoin at $30,000 in 2021. I set a trailing stop loss at 5%, which meant that my position would be automatically sold if the price of Bitcoin fell below $28,500.
The price of Bitcoin did fall below $28,500 in 2022, but my position was automatically sold, and I was able to lock in my profits. If I hadn't used a trailing stop loss, I would have lost money in my position.
I've used trailing stop losses on a number of other occasions, and they've always worked well for me. I'm so glad I started using them, and I highly recommend them to anyone who trades in the crypto market.
Here are some reasons why you should use a trailing stop loss:
They can help you to lock in profits as the price of an asset increases.
They can help you to reduce your losses if the price of an asset falls.
They can help you to take advantage of market volatility.
They are relatively easy to use.
If you're not using trailing stop losses, I highly recommend that you start. They can help you to protect your profits and reduce your losses, and they're relatively easy to use.
let me know in the comment section if you want me to write a detail article on how to efficiently use the trailing stop loss.