how are you all Hope everyone is very well today I will talk about Stop Loss or Stop Limit, what is Stop Loss? And how important it is to use Stop Loss! Stop Loss is used in Shot Term Trade or Future Trade!

What is Stop Loss?

We say Stop Loss but its real meaning is Stop Limit, think you think Solana Coin will go to $200 then you bought it with $170 but Solana went to $100 then you are a huge loss so if you select a certain amount of Stop Limit when suddenly If it crashes, it will hit the lowest fixed price you have given.

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How important is Stop Loss?

Let's take an example with BTC, everyone may remember the Bitcoin Crash around May 2022 when Bitcoin dropped from $38,472 to $29,101 and many traders faced huge losses.
Suppose at that time those who used Stop Loss may have been able to come out with some loss but those who did not use Stop Loss how much loss they faced,
Suppose when the price of Bitcoin was $38,472, if you set a Stop Loss of $37K, when Bitcoin starts to go down, your Stop Loss will hit, so you can sell with a small loss.
Stop Loss should be used in case of ALT Coins because if Bitcoin is down 7%-8% then 25%-30% down is seen in ALT Coins, now if you use Stop Loss instead of 10% down or risk as you wish then when When your coin is sold, you can buy as many coins as you want during the down time, because we don't have available dollars in our wallet during the down time.

Image collect Pixabay

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What is Stop Loss in today's episode? And I learned how important Stop Loss is, Insha-Allah, we will know how to use Stop Loss in the second part! This is the end of today,

everyone, stay healthy, stay healthy, Allah-Hafez.