#CryptoMarketWatch

What happens if you do not use a stop loss?

Let's assume your trading account is 10,000 AED and you want to achieve a 300% net profit increase, which means you will exit the market with 40,000 AED if you are right. If you do not use a stop loss in this case, if you are wrong and the market moves in the opposite direction, you will lose everything you have. Thus, you will have only one opportunity to make a profit, and if you miss this opportunity, you will not be able to succeed. In this way, your chance of success becomes only 50% and cannot be increased because you will not be able to re-enter the market later to correct your mistake.

The impact of not using the strategy increases much more in the crypto market. We have repeatedly discussed the volatile nature of the cryptocurrency market resulting from the lack of liquidity in this market. Therefore, it is easy for whales to control the market and move currencies sharply within a few hours, and we have seen how in February 2025, many currencies dropped very quickly within a few hours over almost 3 days, specifically on February 4th and 5th, then on February 25th at the end of the month. Here, the importance of using a stop loss in the market to protect your capital at all times becomes very clear.

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