Golden tips for using "stop loss" in #Binance futures contracts (even while making a profit!) 🛡️
1. Protect your profits with a trailing stop loss:
- Set a Trailing Stop of 2-5% below the current price.
- If the price rises, the stop automatically moves up ↓ protects your profits from sudden reversals! 📈
2. Don't wait for the peak!
- When achieving a profit of 20%, for example, move the stop to the breakeven point (entry price) ↓ ensures no loss even if the market reverses.
3. Take advantage of "partial stop loss":
- Close 50% of the position when achieving a certain profit ↓ turn part of the profits into cash.
- Leave the rest with a flexible stop loss to capture higher gains! 🎯
4. Avoid tight stops (in volatility):
- In volatile markets, place the stop at strong support levels (like moving averages) to avoid false stops.
5. Use "smart stop loss" with leverage:
- If you are using 10x leverage for example:
- Do not allow a loss of more than 2% of capital in a single trade.
- Example: With a capital of $1,000 ← maximum loss $20 per trade.
6. Even in winning trades... don't forget the stop!
- The market is unpredictable! A stop-loss protects you from unexpected news or liquidity manipulation.
7. Test your strategy on a demo account first:
- Try stop orders in different market conditions before risking real money.
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Practical example:
- I bought a #BTC contract at $30,000 with a stop loss at $28,500.
- The price rose to $33,000 ← I moved the stop to $31,500 (above the entry price).
- Even if the price suddenly drops, I came out with a profit of $1,500! 💰
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Reminder: The stop is not for losers! It's a weapon 💪 for the smart to manage emotions and secure profits.
