PROTECTION TOOLS: Take Profit, Stop Loss, and Trailing Stop

In trading, risk management is the cornerstone of survival. These three tools allow you to set automatic controls on your positions, eliminating the emotional factor from the equation:

🎯 1. STOP LOSS (SL): Your safety net
It's the exit level if the market moves against you. It doesn't represent a defeat, but rather a technical decision to limit losses and avoid liquidations.

Example: Short with entry price 0.4573 | SL at 0.46

Outcome: Controlled loss and capital preserved for the next opportunity.

🎯 2. TAKE PROFIT (TP): Lock in the gains
It's the automatic order to close a trade at a profit. It helps neutralize greed, securing profits before the trend runs out.

Example: Short with entry price 0.4573 | TP at 0.25

Outcome: Profit realized without relying on constant monitoring.

🎯 3. TRAILING STOP: Let the trend run
This tool adjusts the exit level as the price moves in your favor. If the market rises, your Stop Loss rises with it; if the price pulls back, the position closes, protecting the accumulated profit.

Example: Short entry with price mark at 0.2693 and Trailing Stop of 1%

- Price drops to 0.2650 → stop adjusts to 0.2676 (1% above the new low)
- Price drops to 0.2600 → stop drops to 0.2626
- Price rises to 0.2626 → position closes automatically

Outcome: You let your gains run when you're right and limit what you give back when the market goes against you.

In the market, it's not the one who guesses the most that survives, but the one who manages risk the best when the scenario changes. The key is to control losses and let gains breathe.

💬 If you have any questions or want to share which of these tools is essential in your strategy, I’m all ears in the comments.

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