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What happens if you don't use a stop loss?

Let's assume that your trading account is worth 10,000 AED and you want to achieve a 300% net profit increase, which means you would exit the market with 40,000 AED if you are right. If you don't use a stop loss in this case and you are wrong, and the market moves in the opposite direction, you will lose everything you have. Thus, you will only have 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 it cannot increase because you will not be able to re-enter the market later and correct your mistake.

The impact of not using the strategy increases much more in the crypto market. We have talked repeatedly about the volatile nature of the cryptocurrency market due to the low 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 rapidly within a few hours over almost 3 days, specifically on the 4th and 5th of February and then on the 25th of February 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.