🛡️💸 Setting a stop-loss isn't just about picking a random percentage; that's exactly how I lost my initial $5,400. You need to base it on market structure. For a long trade, identify a significant swing low. If BTC is at $30,000 and the last strong low was $29,500, place your stop *just below* it, maybe $29,480. This signals your trade idea is invalid.
Now, stop-limit versus stop-market. A stop-limit order triggers a limit order at your specified price, but it *can be skipped* if volatility is too high, leaving you exposed. A stop-market order, once triggered, executes immediately at the best available price. For beginners and risk management, always use a **stop-market** for guaranteed exit. The only reason stops get skipped with stop-market is extreme gaps in liquidity, which can...
Now, stop-limit versus stop-market. A stop-limit order triggers a limit order at your specified price, but it *can be skipped* if volatility is too high, leaving you exposed. A stop-market order, once triggered, executes immediately at the best available price. For beginners and risk management, always use a **stop-market** for guaranteed exit. The only reason stops get skipped with stop-market is extreme gaps in liquidity, which can...