🔥How to Set a Stop-Loss Level❓

Hey everyone, many people have suffered losses these days🥲. What is the most painful thing in trading? It’s not missing out on profits, but turning small losses into big ones, ultimately having to cut losses and exit😭.

Remember: a stop-loss is not about giving up, but a trader’s “lifesaver”!

Many beginners are afraid to set stop-losses and don’t know how to do it. Today, I will explain the most core stop-loss methods all at once! This is valuable information that money can’t buy, so I recommend liking and saving this post, and take your time to read!

1️⃣ Core Concept: Stop-loss is like a seatbelt, not a tool for throwing a tantrum! The mathematical rule tells us: a 50% loss requires a 100% gain to break even! When encountering a “crocodile🐊 bite,” be decisive and cut it off. Protecting your principal is the way to go.

2️⃣ Technical Approach: Find the “key defense line” on the K-line chart. The stop-loss point should not be set arbitrarily; it should be placed where a wrong judgment can be proven, such as below the previous support level or where the trendline is broken.

3️⃣ Dynamic Follow-up: Make the stop-loss level flexible. The market changes, and so should the stop-loss. Use moving averages as a trend bodyguard, and the ATR indicator to tailor the trading space based on volatility, avoiding unnecessary stop-outs.

4️⃣ Capital Management Approach: Look at your wallet first, then at the chart! This is the most professional method! Don’t ask how much to buy; ask how much you can afford to lose. Use the “2%” rule to backtrack your position size, letting your capital determine the risk you can bear.

5️⃣ Knowledge and Action: Discipline firmly, avoid big pitfalls. Set your stop-loss immediately when placing an order! Never fall into the “holding-on-to-hope” illusion or move your stop-loss easily. Cut losses short and let profits run🏃🏻‍♂️💰.

Trading is a marathon, not a sprint. Learning to set a stop-loss allows you to survive longer in the market!
#币圈知识 #宝藏交易员 #新晋带单员