#StopLossStrategies - I present to you a practical example of correct trading. For instance, I decided to enter a buy position for Bitcoin at a price of $84,644.2 after an analysis indicating an upward trend.

Setting a stop loss

- To avoid a significant loss, we place a "stop loss" order below a strong support level. Let's assume the nearest strong support is $84,144.2.

- Here you will risk **$500** per unit (the difference between the entry price and the stop loss: 84,644.2 - 84,144.2).

Setting a profit target

- To calculate the target, use a reward/risk ratio of at least **1:2**.

- In this example, we apply a ratio of **1:3**, so the target will be:

84,644.2 + (3 \times 500) = $86,144.2

- The expected profit per unit: **$1,500** (86,144.2 - 84,644.2).

Trade size

- Do not risk more than 2% of your capital in the trade. If your capital is $10,000, then the maximum risk is $200.

- The number of units you can buy:

frac{200}{500} = 0.4 units

Possible scenarios:

- If the price drops to $84,144.2:

- The trade closes automatically, and the loss = \(0.4 \times 500 = $200\) (which is 2% of the capital, protecting it from larger losses).

- If the price rises to $86,144.2:

- The trade closes automatically, and the profit = (0.4 \times 1,500 = $600).