#StopLossStrategies

Thinking of trading crypto without a stop-loss? Think again.

Stop-loss strategies are a trader’s safety net—protecting your capital when the market goes south. Here’s what you need to know:

1. Fixed Percentage Stop-Loss:

Set your stop-loss at a specific % below your entry. Example: Bought BTC at $30,000? A 5% stop-loss means you exit at $28,500. Simple, clean, effective.

2. Trailing Stop-Loss:

This one moves with the price. Say you set a 5% trailing stop and BTC rises from $30K to $35K. Your stop-loss trails upward and locks in profit if the price drops 5% from its peak.

3. Support/Resistance Stop-Loss:

Use technical analysis. Set stop-loss just below support or above resistance levels. If the price breaks through, it's a sign your trade idea is invalid.

4. Volatility-Based Stop-Loss:

Crypto is volatile—use indicators like ATR (Average True Range) to set stop-losses that give your trade breathing room without taking huge risks.

5. Time-Based Stop-Loss:

Did the price not move as expected in your timeframe? Exit. This helps you avoid dead capital.

Bonus Tip:

Never place stops based on emotion. Plan them before you enter the trade.

Bottom Line:

Using stop-losses is not about fear—it's about discipline. They protect your capital, minimize losses, and give you a clear plan. In a market that never sleeps, your stop-loss is your best friend.