What is the most important strategy for any successful trader? Risk management – specifically, using stop-loss orders wisely.
Let's take the $AVAX coin as an example.
Trading currently between $45 and $50 presents an opportunity, but entering without an exit plan = uncalculated risk.
If you bought at $47, the ideal stop-loss would be below the important support at $44.
Many traders set their stop-loss too close to the entry point, which leads to early exits.
The secret is to balance the stop-loss with technical support and the risk-to-reward ratio.
Protect your capital before thinking about profits.