Good morning!
Many people believe that "spot trading is safer because you can just wait; you don't lose unless you sell," and this is true. ✅ However, in reality, waiting while your asset continuously declines can be mentally exhausting and financially risky.
That’s why Binance offers a stop-loss option in its spot trading interface, yet many of us neglect it due to ignorance or fear of taking losses. We often just buy and wait for our sell limit price to be reached.
This "waiting" can trap you for months or even years, causing you to miss out on other opportunities. Some coins, especially meme coins like $TRUMP or those in a downtrend, may never recover. Emotional stress builds up, leading you to sell at the worst possible time out of frustration. You know what I mean!
### HERE’S A PRACTICAL APPROACH:
✔ **Set a Stop-Loss Range Based on Coin Type:**
- For major coins (like $BTC , #ETH ,#SOL , XRP, or ADA), a wider stop-loss (around -15% to -20%) might be acceptable.
- For riskier coins (new, meme, or hype), use a tighter stop-loss (about -5% to -10%).
✔ **Decide Before Entering a Trade:**
- Before you buy, determine: "If this dips by X%, I will exit without emotion." Don’t rely on hope for a rebound.
✔ **Accept Small Losses to Protect Your Capital:**
- A small loss today is preferable to being stuck with a significant loss for months. I’ve been holding ORCA tokens for seven months and it’s been tough. 😞
Protecting your capital is more important than preserving your ego. By accepting small, controlled losses, you can avoid painful holding periods and trade with a fresh mindset.
Waiting blindly is not a strategy; it’s emotional attachment.