#StopLossStrategies
stop-loss strategies, with examples assuming you’re trading ETH at $2,500 (a round figure near April 2025 prices):Percentage-Based Stop-LossHow It Works: Set a stop-loss at a fixed percentage below your entry price, typically 5-10% for ETH, depending on your risk tolerance.Example: Buy 1 ETH at $2,500. Set a stop-loss at 7% below ($2,325). If ETH drops to $2,325, Binance auto-sells, capping your loss at $175.Pros: Simple, suits beginners. Aligns with ETH’s volatility (daily moves of 3-5% are common).Cons: May trigger too early in choppy markets (e.g., ETH’s flash crashes).Psychology Tip: Stick to your chosen percentage. If you override it mid-trade (e.g., “It’ll bounce back”), you risk bigger losses. Predefine risk (1-2% of portfolio) to stay calm.Binance Setup: Use a “Stop-Limit” order. Set stop price at $2,325, limit price at $2,320 (slightly below to ensure execution).
