#CryptoMarketWatch
What happens if you don't use a stop loss?
Let's assume your trading account size is 10,000 AED and you want to achieve a 300% net profit increase, which means you will exit the market with 40,000 AED if you are correct. If you do not use a stop loss in this case, if you are wrong and the market moves in the opposite direction, you will lose everything you have. Therefore, you will only have one opportunity to make a profit, and if you miss this opportunity, you will not be able to succeed. In this way, your chance of success becomes only 50%, and it cannot increase because you will not be able to re-enter the market later and correct your mistake.
The impact of not using the strategy increases significantly in the crypto market. We have repeatedly talked about the volatile nature of the cryptocurrency market due to the lack of liquidity in this market. Therefore, it is easy for whales to manipulate the market and move currencies sharply within a few hours, and we have seen how in February 2025, many currencies dropped rapidly within just a few hours over almost 3 days, specifically on the 4th and 5th of February, and then on the 25th of February at the end of the month. Here the importance of using a stop loss in the market to protect your capital at all times becomes very clear.
