Stop-loss strategies are essential tools for managing risk in volatile markets like crypto.
By setting a predetermined price to sell an asset, you protect yourself from unexpected and large losses.
One common method is the percentage stop-loss, where you exit a trade if the price drops by a set percentage. Another is the trailing stop-loss, which moves with the market price to lock in profits.
These tools can prevent emotional decisions during sudden downturns and help preserve your capital for future trades.
Every trader should have a clear stop-loss strategy in place to maintain discipline and ensure long-term sustainability in trading.