#StopLossStrategies

In crypto trading—especially on platforms like Binance—stop-loss strategies are essential for protecting your capital in a volatile market.

What is a stop-loss?

A stop-loss order automatically sells your asset when it hits a certain price, helping you cap potential losses before they snowball.

Popular Stop-Loss Strategies:

1. Fixed Percentage:

Set a stop-loss at a set % below your entry.

Example: Buy BTC at $50K, set a 5% stop-loss—auto-sell triggers at $47.5K.

2. Support/Resistance-Based:

Use technical levels.

• In long trades: Place stop-loss just below a key support level.

• In shorts: Set it just above a resistance level.

3. Trailing Stop-Loss:

This one moves with the market. As the price climbs, your stop-loss follows—locking in gains while limiting downside.

4. Time-Based Stops:

If a trade doesn’t move in your favor within a set time, exit. Great for scalpers and short-term traders.

How to Set It on Binance:

Use the trading interface to choose “Stop-Limit” or “OCO” orders.

Define your stop price (the trigger) and limit price (execution).

Pro Tip:

• Too tight? You risk getting stopped out by minor swings.

• Too wide? You might eat larger losses than you planned.

Balance is key. Adjust as the market shifts.

Master your stop-loss game—because capital preservation is rule #1. $BTC