🔸 Post 13: How to Use Stop Loss Practically to Protect Your Investments? 🛑💡**
> A stop loss is a smart tool that helps you determine the maximum losses you can tolerate in a trade.
> Here’s how to use it step by step:
>
> 1️⃣ **Choose the entry point in the trade**
>
> * For example, you bought a coin at a price of 100 dollars
>
> 2️⃣ **Determine the maximum loss you can bear**
>
> * Let's say you don’t want to lose more than 5% of your investment
> * This means the stop loss price is at 95 dollars
>
> 3️⃣ **Set the stop loss order on the trading platform**
>
> * In Binance, for example, when opening the trade, click on the “Stop Loss” option
> * Enter the price of 95 dollars as your loss limit
>
> 4️⃣ **When does the stop loss work?**
>
> * If the price of the coin drops to 95 dollars or less, the coin is automatically sold
> * This helps you avoid larger losses in case the decline continues
>
> 5️⃣ **Tips When Using Stop Loss**
>
> * Don’t set the stop loss too close to the purchase price so that it doesn’t get triggered by small fluctuations
> * Don’t make it too far away as you may incur a significant loss
> * Review the stop loss regularly based on market movement
>
> ⚠️ **Reminder:** The stop loss does not completely prevent losses, but it significantly reduces them and protects your capital.
>
> 💬 Do you use stop loss in your trades? How do you determine the right price for it? Share with us!
>
> \#Safe\_Trading #Stop\_Loss #Binance #Investment\_Protection #CryptoTips