Mastering Crypto Trading: A Beginner’s Guide to Setting Stop Loss and Take Profit Strategies

 

Press enter or click to view image in full size

Did you know placing stop loss and take profit is the key skill for trading? If you misjudge the trend direction, fail to enter the market according to the signal, and perform frequent trading. The chances of losing money are increased. Trading needs a skill that states that you must enter the market at the right position and leave when your allocation of funds is in the danger position.

1. Always protect your principles. Not a single dollar loss is acceptable.
2. Hold your profitable orders until the profit is achieved.

The professional traders always follow two stages for trading. If both stages are fulfilled, they consider them successful.

1. Strict entry and advancement stage.
2. Losing out stage.

Every trend in trading is based on wave. And price fluctuation occurs continuously. As a trader, you are not required to follow stop loss because if you do this, you always fear pulling back and missing out on the trend. Entering the trend is based on setting up the stop-loss order, and it is essential for entering the trend. But what are the parameters you should consider? Every stop loss depends on four variations:

1. Signal stop loss: It is a simple Kline pattern of the trading signal.
2. Structural stop loss: It is the type of stop loss where you put your order at the right nodes of the chart. According to price fluctuations, highs and lows in a trend.
3. Three-line stop loss: This stop loss is based on the lowest price among the three k lines.
4. Stop loss to protect capital: It is always used to exit from the market because price is out of control; however, the target already met up.

Entering into the market

Press enter or click to view image in full size

The question arises here about how one determines to enter the market because prices continuously fluctuate like a wave.

1. First, you assume that you are taking a long position.
2. Check the graph of the target crypto coin.
3. Create three high points and three low points.

If the price moves around the second-high point, it is not the time to enter the market. When the price lands around the second low point. It is the right time to enter the market.