Stop loss and the need to protect your finances
Imagine you enter with $100 in SOL because you see an opportunity. Without a stop-loss, a movement against you can take a significant part of your capital before you react. But if you set it up from the beginning, for example, placing it at $5, you know that your maximum loss will be 5, not $30 or more due to a sudden drop.
Volatility does not discriminate by the size of the operation. An automatic stop-loss protects those $100 as if they were $10,000:
- It removes the stress of monitoring every second.
- It prevents a bad play from affecting your capital for future opportunities.
- It forces you to be disciplined, even with modest amounts.
On Binance, activating it is quick: when creating your order, select Stop-Loss and define your limit.
Small controlled losses are better than devastating surprises.
