🛑 Stop risking, use Stop Loss your best ally 🤯
Many lose money because they don't use Stop Loss correctly.
Sometimes they place it incorrectly or don’t use it at all. That can be costly.
If you want to last in trading, Stop Loss is key.
1. What is Stop Loss?
It's a price where your trade closes automatically if the market goes against you.
It serves to:
Avoid large losses
Control emotions
Protect your money
It's like a seatbelt.
2. Common mistakes
❌ Placing it by intuition
❌ Always using the same size
❌ Moving it when the trade goes bad
3. How to place it correctly?
🔹 A. By zones (support and resistance)
If you buy: Stop Loss goes below the support
If you sell: goes above the resistance
💡 Example:
Enter at $50
Support: $48
Place the Stop Loss at $47.50
🔹 B. By volatility (ATR)
The ATR indicates how much the price usually moves.
Formula:
Stop = Entry ± (1.5 × ATR)
💡 Example:
ATR = $0.80
Stop = $1.20 below
🔹 C. By your capital
Only risk 1% or 2% of your account per trade.
Example:
Capital: $500
Risk: 2% = $10
You trade 20 tokens → SL = $0.50 below
4. Where NOT to place it?
🚫 Very close to the entry
🚫 Exactly at the support or resistance
🚫 At round numbers ($10, $100)
5. Avoid the “wicks”
Sometimes the price hits your Stop and then goes up.
That’s a “fakeout.”
✔️ Solution:
Place the Stop a little further from that area.
6. Secure profits (Trailing Stop)
When you are winning, raise the Stop to secure part of that profit.
7. Correct mindset
Never erase your Stop Loss.
If it gets activated, you didn’t lose: it was part of the plan.
8. Example in $SOL
Entry: $18.50
Support: $17.80
ATR: $0.50
Capital: $1,000
Quantity: 30 SOL
By support: $17.60
By ATR: $17.75
By capital (2%): $17.83
✅ Conclusion
The Stop Loss is not an enemy.
It is your tool to protect yourself.
You cannot control the market,
but you can control how much you lose.
