🕵️♂️🔥 🌶️🔪 💻🤫 The key to not falling into the trap lies in a super important tool: Stop Loss (SL) and Take Profit (TP). They are like your bulletproof vest and your treasure map! 🛡️🗺️
What are SL and TP and why are they your best friends? 👑
Imagine you're in a casino and you've bet on a number. If you win, great! But if you start losing, you need to know when to walk away before you lose it all, right? 🤯 Well, that’s how Stop Loss and Take Profit work.
* Stop Loss (SL): The bulletproof vest 🛡️
The Stop Loss is an automatic order you give to the platform to sell your cryptocurrency if its price falls to a specific level. 📉 It's like saying: "Hey, if this coin drops to $1.40, sell everything so I don’t lose more money!". 🛑 This protects you from sudden and huge drops, like those that happen after a dumping. In the case of the image, if you bought when the price rose to $1.52, you could set a Stop Loss at $1.45 to protect your capital if the price crashes.
* Take Profit (TP): The treasure map 💰
The Take Profit is the opposite. 📈 It's an automatic order to sell your cryptocurrency if its price rises to a level you consider a good profit. 🤑 You tell the platform: "If this coin reaches $1.65, sell it and take my profits!". 🎉 This way, you don't have to be glued to the screen, and you ensure you take your money before the price drops, avoiding the greed that sometimes makes us wait too long. It's perfect for capitalizing on those unexpected spikes!
How to apply them in the "mystery" of dumping? 🕵️♂️💸
When you see a meteoric rise like API3USDT's 84.09%, your detective mind needs to kick in. 🤔 Instead of jumping in without thinking, you can use SL/TP to protect yourself and maybe even take advantage of the situation!
* Mystery of the "Pump" 🚀: You see the price rising. You decide to enter, but cautiously. 🤔 At that moment, you place a Take Profit order just above your entry price (example: if you buy at $1.53, you set a TP at $1.60).
* Mystery of the "Dump" 📉: But, what happens if the mystery wasn’t a real growth and the price crashes? 😱 For that, you set your Stop Loss just below your entry price (example: if you buy at $1.53, set an SL at $1.50).
So, regardless of whether the price rises or falls dramatically, you have your strategy ready to protect your profits or minimize your losses! 💪😉 It's like having a plan B and a plan C.
And Staking or EARN FLEXIBLE? 🤔
Aha! Now a note that is too important...!!!!🎯 🤯 👑🎉
The fundamental difference between active trading (like in Spot and Futures) and passive investing (like in Staking or Earn Flexible). 🤓 In trading, with the Stop Loss and Take Profit, you are the captain of the ship 🛳️, charting the course to protect yourself from icebergs 🧊 and ensuring you reach port with a bounty.
But in Staking, in products like Binance's Earn Flexible, it’s like you’ve put your ship in a safe harbor ⚓, and it’s anchored while the tide goes up and down. 🌊 You earn interest (a "little bit of extra water" in your ship) for having it there... but there’s no captain with an SL/TP to tell the ship to move if the tide goes too low! 😱 If the value of the asset falls, your capital and therefore your profits are directly affected. 😥
That's why... you have to be "on the front line"! 💂♂️ You need to monitor the price of the cryptocurrency you have in Staking, because unlike trading, there’s no automatic order to pull you out if the price crashes. 📉 If you see that the value of your crypto is falling alarmingly, the only way to protect your investment is to withdraw it from Earn Flexible manually! 🏃♂️💰
This is crucial, and I bring it up because it's a blind spot for many beginners. 👀 It doesn't matter if you're in Staking or in a passive investment product... you always have to stay alert to the market! 🕵️♂️ Because a drop in an asset can wipe out all the passive gains you've accumulated... and even more! It's happened to me more than once...😬
So...👏 The SL/TP is a tool for active trading, but constant vigilance is the tool for any type of investment, including passive ones! 😉👍 🏦 🐢
conclusion,🥳🍀🫂
So, for those types of "DUMPING" movements, whether they happen or not, the SL/TP is your best secret weapon in Spot and Futures! ⚔️ Always trade with a strategy and don’t let the "mystery" catch you by surprise! 🤫🔍
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Thank you for reading.
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#StopLossHunting #TakeProfit #InversorInteligente #CreatorPad
