⚔️ Stop Loss or Stop Profit? I’m Confused!
(Beginner’s Edition)
By Adetola Awode
You’re not alone.
Many traders ask themselves:
> “Should I set a Stop Loss (SL)… or just aim for profits and ride the waves?”
Especially after:
USA/China trade wars
USA–Israel/Iran bombings
Other surprise global events
These can slam the crypto market in minutes.
So let’s clear the fog 👇
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🛑 What is a Stop Loss (SL)?
A Stop Loss is a preset order to sell your crypto if the price drops to a certain level.
✅ Purpose → Limit your losses.
🚫 Reality → Sometimes you get stopped out… only for the price to bounce back afterward.
This is why many traders hate SLs.
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💸 Why You Lose More With SL Sometimes
Crypto is volatile. It swings up and down wildly.
Your SL might be too tight.
Whales and bots love to “hunt” SLs (push price just low enough to trigger stop orders before reversing).
So you get stopped out… and miss the next pump. Frustrating!
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🫣 Why Trading Without SL Feels Safer (But Isn’t)
Trading without a stop loss feels like freedom… until the market drops 30–50% overnight.
Events like:
Black Swan news
Exchange hacks
Geopolitical tension
…can crash prices while you sleep.
Without an SL, you might:
Hold a coin that keeps tanking
Tie up your money for months waiting for recovery
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✅ How to Use SL Smarter
If you keep losing money with SLs, it doesn’t mean SLs are bad. It may mean:
✅ Your stop was too close to entry.
✅ Your position size was too big, making losses feel unbearable.
✅ You didn’t plan your trades with clear levels in mind.
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🎯 Consider These Tips:
✅ Set a “mental stop” if you don’t want to place automatic SL orders. Be disciplined enough to exit manually if price hits your danger zone.
✅ Keep your position small so swings don’t wipe you out.
✅ Place SL below meaningful support levels — not random numbers.
✅ Combine SL with Take Profit (TP) orders to lock in gains.
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💡 What About “Stop Profit”?
A “Stop Profit” (or trailing stop) protects your gains:
If the price goes up, your stop follows it upward.
If price reverses, it sells your asset and locks in profit.
✅ Great for volatile markets like crypto.
✅ Helps avoid riding gains all the way back to losses.
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🧠 Final Thoughts:
> Stop Loss is like a seat belt. It might feel restrictive. But when accidents happen, you’ll be glad you wore it.
Trade without SL only if you’re willing to hold long-term or accept total loss.
Otherwise:
Plan your levels
Use proper position sizing
Don’t let one loss wreck your account
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Lesson learned the hard way is still a valuable lesson.
You’ve survived the bombs and wars — you’ll survive the charts, too. 😉
