#SecureYourAssets Why Stop-Losses Matter:
Stop-losses automate your exits and protect your capital. In crypto's brutal 2018 bear market, traders who placed stop-losses just 15% below their entry avoided massive 50%+ drawdowns on altcoins.
How to Use Them Effectively:
Base it on volatility:
For stable assets (like blue-chip stocks), use tighter stops — around 5–10%.
For volatile assets (like low-liquidity crypto tokens), go wider — 15–25%.
Use trailing stops in trending markets to secure profits while letting winners run.
Psychology Tip:
Stop-losses help tame emotional pitfalls — they prevent greed (holding on too long) and fear (hesitating to sell).
Mentally rehearse your stop levels to build confidence and avoid second-guessing when the heat is on.