Stop Loss Management

Stop loss is a mechanism for traders to minimize their losses if the trade goes against them.

You can think of it like insurance to avoid you from losing much bigger size later on.

There are multiple stop loss method that you can implement.

1) Hard stop-loss

Setting a specific amount you willing to lose at certain percentage.

Set using stop-limit order

Doing nothing and just wait to take profits or your hard stop loss is hit.

This method is strict and perfect to keep you consistent throughout the game. It removes certain variables that might affect your trading in psychological level.

2) Mental Stop Loss

Similar to hard stop loss but you didn’t set any limit orders and just watching the level where you might cut your position if the trade goes against you.

This is a highly trained skill, not recommended for those who are not used to using Stop loss in the first place.

It can make you involved in your trades emotionally which is bad for your trading.

3) Trailing Stop Loss

You can trail your stop loss either automatically(Depend on platform features) or manually by monitoring price changes over time.

Sometimes price trends higher and you want to maximise your profit but at the same time taking care of your downside. This is the perfect solution for it.

Need to learn how to trail properly by try and error in each coin that you enter. Every coin have different volatility, especially memecoin.

There are other types of stop losses but this are the main ones that every traders have used previously.

There is no one size fits all, it depends on your trading strategy, profit-taking strategy and your Trading System as a whole.

Make sure you develop your own trading style first then implement everything one by one.

Hope this is helpful!

- seuneqs