⚠️ Protect Your Portfolio from Disaster: How & Why to Set a Stop-Loss! (Beginner's Guide)
Body:
Hello @AyoubAnalysis Community! 👋
If your portfolio has ever dropped -7% or -10% in a single day (as mine has!), you know that a Stop-Loss is your best friend in the world of trading. Emotional decisions always lead to losses; a Stop-Loss is an automated system to halt those losses.
What is a Stop-Loss and How Does It Work?
What is it? It's an order you place when buying a coin. If the coin's price hits your predefined loss limit, your coin is automatically sold.
Why is it essential? It prevents your entire fund from being wiped out and keeps your Risk Management under control.
3 Simple Steps to Set a Stop-Loss:
Step 1: Define Your Risk: Never risk more than 2% of your total capital on any single trade. If you invested $1000, don't risk losing more than $20.
Step 2: Identify Support: Always set your Stop-Loss slightly below a key support level. If the coin breaks below support, it's a clear signal that your analysis might be incorrect.
Step 3: Place the Order: On Binance, use a "Stop-Limit" order instead of a simple "Limit" or "Market" order.
🚨 Ayoub's Tip: Don't get emotional with a falling coin (like $HMSTR). Set a Stop-Loss and sleep peacefully.
How much risk do YOU take in your trades? 👇
Share your best risk management tip in the comments below!
#StopLoss #RiskManagement #TradingTips #AyoubAnalysis #Education $ETH $BNB $BTC #BTC86kJPShock
