#CryptoMarketWatch
What happens if you do not use a stop loss?
Let’s assume your trading account is 10,000 UAE Dirhams and you want to achieve a 300% net profit increase, which means you would exit the market with 40,000 Dirhams if you are correct. 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 and correct your mistake.
The impact of not using the strategy increases significantly in the crypto market. We have talked repeatedly about the volatile nature of the cryptocurrency market resulting from the lack of liquidity in this market. Thus, 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 rapidly within a few hours over almost 3 days, specifically on February 4th and 5th, and 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.
