Trailing Stop Loss: The Smart Lifeline to Preserve Your Profits
Trailing Stop Loss: The Smart Lifeline to Preserve Your Profits
In the cryptocurrency market, one of the hardest decisions is: When do I sell?
But there is a smart tool called "Trailing Stop Loss" that helps you protect your profits without needing to monitor the market moment by moment.
What does Trailing Stop Loss mean?
It is an automatic sell order that moves up with the price (in the case of buying).
This means that as the price rises, the stop loss level also rises.
But if the price starts to fall? The stop loss remains fixed and triggers when the price drops below it.
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A simple example:
You bought a coin for $1.00
You set a trailing stop loss of -10%
The price rises to $1.20 → The stop loss becomes $1.08
The price reaches $1.30 → The stop loss becomes $1.17
If the price drops to $1.17 → It will automatically sell and preserve a large part of your profits.
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Why is it important?
It protects you from sudden crashes
It allows you to profit as long as the market is rising
It reduces stress and emotional decisions
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When do you use it?
After you achieve reasonable profits and want to protect them
When entering an active coin but the market is volatile
During strong news that causes rapid fluctuations
Advice for beginners:
Start with a small percentage (like 5% or 10%) and adjust it based on the volatility of the coin. Smaller coins require a larger percentage.
Do you use the trailing stop loss?
Share your experience or opinion with us