#CEXvsDEX101

The Importance of Stop Loss in Trading 📈

Stop loss is not an option, but a necessity for every trader seeking sustainability and success. It is the first line of defense to protect your capital from significant losses resulting from market fluctuations or emotional decisions.

💡 How to Use It Effectively:

Set it before entering the trade, based on technical analysis or support and resistance levels.

Do not move it randomly while the price moves against you.

Keep the potential loss ratio not to exceed 2%-3% of your capital.

Always test your strategy with a stop loss before real trading.

Your commitment to the stop loss reflects your discipline, gives you a psychological and tactical edge in the markets, and increases your chances of long-term success.