#Did_You_Know:

⛔️ What is Stop Loss!

🤔 It is a pre-determined trading order to automatically close your position when the price reaches a certain level of loss.

🤔 Its primary goal is to protect capital and reduce risks.

📌 Types of Stop Loss Orders:

🤔 First, Fixed Stop Loss:

🤔 You set a fixed price at which the position will be automatically closed.

🤔 Second, Trailing Stop Loss:

🤔 It automatically moves with the price direction in your favor but does not go backward. It protects profits without limiting gains.

⭕ Practical Example:

🍏 You bought a currency at a price of $200.

🍏 You set the Stop Loss at $180.

🍏 If the price drops to $180, the currency is sold automatically.

🍏 The result: You lost only 10% instead of a potential loss of 30% or more.

✅ Why it is important:

✅ It prevents making emotional decisions under market pressure.

✅ It reduces large losses resulting from sudden movements.

✅ It helps you stick to your trading plan.

⛔ Common Mistakes to Avoid:

✅ Completely ignoring the Stop Loss.

✅ Setting it too close to the entry price, causing it to trigger with a slight market movement.

✅ Changing it during a loss out of hope or hesitation.

📌 Light Tip:

Trading without a Stop Loss is like riding a car without brakes. The adventure is sweet, but safety is sweeter!

#Stop_Loss #Risk_Management #Safe_Trading #Crypto_Education #Trading_Tips