#GENIUSAct Ways to Avoid Loss in Trading
🛡️ How to Avoid Loss in Trading: 7 Golden Tips for Traders
Trading in cryptocurrencies is one of the popular ways to make money online. However, despite the large profit opportunities, the risk of loss always remains. In this article, we will review the most important methods and practical tips to avoid loss in trading.
1. Learn Before You Start
The biggest mistake beginners make is entering the market without any knowledge. You should learn the basics of technical and fundamental analysis, understand how markets work, the types of orders, and risk management.
Tip: Take your time to study, and start with a demo account before using your real money.
2. Have a Clear Trading Plan
Do not enter any trade based on feeling or randomness. You should have a trading plan that includes:
When to enter the trade
When to exit it
The profit-to-loss ratio
The maximum daily or weekly loss
3. Use Stop-Loss Orders
A stop-loss order is your first friend in trading. It prevents you from continuing in a losing trade due to hope or greed.
Example: If you bought a coin at $1.00, set a stop-loss at $0.90 to protect your capital.
4. 💰 Do Not Risk More Than You Can Afford to Lose
General rule: Do not risk more than 1-2% of your capital in a single trade. This way, even if you lose more than one consecutive trade, your portfolio will not be significantly affected.
