Trading is one of the best professions in the world, often referred to as an ATM machine.
If you are familiar with trading and know the skills and basics, then surely you can earn good money. However, trading always comes with risks, and even seasoned traders face losses.
In this post, I will try to explain a simple method to protect your trades and how to reduce your losses.
One of the main things in trading is understanding the mechanism of stop loss. Why is stop loss added in futures, and how does it work?
Stop loss means that when the price hits the level where you want to exit your trade, it will automatically execute and save you from further losses.
We all know that the crypto market is extremely volatile. Any coin can move by 30 to 40% within an hour, and those who don't have time to monitor their trades will surely book huge losses. A stop loss, in this particular case, helps you reduce your losses.
In trading, minimizing losses is just as important as maximizing profits. Adjusting your stop loss to the breakeven point is a simple yet highly effective technique that can transform the way you manage risk.
Whenever you enter a trade, keep in mind that it's a practical tool to protect your capital and maximize your chances of long-term success.
Many people are against using stop losses because they believe institutions manipulate the market, grabbing liquidity and hitting stop losses. However, I would say that stop losses protect your money and shield you from further losses.
With the help of a stop loss, you can find another good trade that will lead you toward profit. By consistently applying this approach, you will protect your investments, enhance your confidence, and create a solid pathway toward good profits.
THANK YOU!
