#CryptoStocks

🛑 Stop Loss

What is "Stop Loss"?

Stop Loss is a tool used by traders to protect their capital from large losses. Simply put, it is an automatic order that is executed when the price reaches a predetermined level, to close the trade and set the maximum loss you are willing to accept 📉.

Why do we use it?

To reduce risks 🔒.

To protect realized profits.

To avoid emotional decisions during market volatility.

Its importance in capital management

Stop Loss is not just a way to exit a trade, but an essential part of a professional trading plan 📊. It helps you withstand the market in the long run and not get swept away by greed or fear.

Common mistakes in using it 🚫

Placing the Stop Loss too close to the entry price, leading to a quick exit from the trade due to natural fluctuations.

Not using it at all, exposing you to massive losses.

Changing it randomly during the trade.

Golden advice ✨

"Controlling loss is more important than pursuing profit."

Profit comes, but staying in the market requires protecting capital first!