Stop loss orders are essential tools for managing risk in both traditional and crypto trading. These pre-set sell orders help traders automatically exit a position when the price hits a specific level, limiting potential losses.
There are several strategies to consider: fixed percentage stop loss (e.g., 2% below entry), trailing stop loss (which adjusts as the price moves in your favor), or using support and resistance zones to set stop points. The key is to tailor your stop loss to your trading style and market volatility.
Using stop losses consistently builds discipline and prevents emotional decision-making—critical for surviving in any market.
