Several stop-loss methods (BTC spot trading) that virtual currency traders must know:
1. Fixed-amount stop-loss method
The simplest way to stop loss is to set a fixed loss ratio (such as BTC I set the highest point to fall back 20%), and close the position immediately when the loss reaches this ratio.
2. Technical stop-loss method
The technical stop-loss method relies on technical analysis tools, such as MA moving average, trend line, BOLL Bollinger band, etc. When the currency price falls below the key support level or the technical indicator sends a sell signal (death cross), stop loss immediately. I prefer to stop loss when it falls below MA20.
3. Time stop-loss method
If the expected profit is not achieved within N trading days after buying, stop loss. Right-side traders generally start only when there is an obvious market, such as Trump's market.
4. Psychological price stop-loss method
The psychological price stop-loss method sets the stop-loss point according to the investor's psychological expectations. For example, when the BTC price falls below a certain psychological price (BTC is 80,000), stop loss immediately.
5. Unconditional stop loss method
The unconditional stop loss method stops loss immediately when there is a fundamental change in the market, regardless of profit or loss. For example, if you find that Trump has sold a large amount of a certain currency, run!
