🛑 What is a Stop-Loss and how is it used?
A stop-loss is an automatic order that sells your cryptocurrency if the price falls to a certain level, limiting your losses.
✅ How to set it up?
Day Trading | Buy BTC at $60,000 | Stop-loss at $58,500 (−2.5 %)
Swing Trading | Buy ETH at $3,000 | Stop-loss at $2,700 (−10 %)
HODL/Long-Term | Buy SOL at $25 | Optional or mental stop-loss (−20 %)
👉 Ideally, place it below a key technical support level or a % you are willing to lose.
> ⚠️ Avoid placing it too close, or you might sell due to a temporary market drop ("wick").
🎯 How to set realistic goals?
✅ Define your Risk/Reward ratio (R/R):
A popular rule: Risk/Reward 1:2 or 1:3
> If your stop-loss is at −5 %, your profit target should be +10 % or +15 %.
✅ Based on technical analysis:
Previous resistances: areas where the price usually stops.
Fibonacci Retracement: a tool to mark potential targets.
Moving averages (like the 200-day): often act as a price "ceiling".
📊 Visual example of a strategy with Stop-loss and TP (Take-Profit)
Imagine this trade on Binance:
Entry: BUY SUI at $0.85
Stop-loss: $0.81 (−4.7 %)
Take-Profit 1: $0.94 (+10.5 %)
Take-Profit 2 (partial): $1.02 (+20 %)
📌 If the price drops to $0.81, you sell automatically to protect your capital.
📌 If it rises to $0.94, you can sell part and let the rest run.
⚒️ Useful tools:
📈 TradingView: to draw support/resistance zones and calculate stops.
📱 Binance / Bybit / Bitget: have Stop-Limit and OCO (One Cancels the Other) options to execute these strategies.
🔐 Key tips:
✅ Always use stop-loss. It’s not for cowards, it’s for professionals!
✅ Don’t get carried away by emotions or "rumors".
✅ Adjust your stops as the price rises → Trailing Stop.
✅ Never risk more than 1-3 % of your total capital per trade.
#stoploss #Stop-loss #stop