Trade Bitcoin Trading

BTCUSD Stop Loss Definition

Stop Loss Bitcoin Order Management

Stop Loss Bitcoin Order is a type of order which is set after opening a bitcoin trade that is meant to minimize losses if the bitcoin market trend goes against you.

Stop Loss Bitcoin Order is a predetermined point of exiting a losing bitcoin trade and it's meant to control losses in cryptocurrency.

A stop loss bitcoin order is an order placed with your bitcoin broker which will automatically close your open bitcoin trade when the bitcoin market price of your open trade order reaches a predetermined bitcoin trading price. When the particular level is attained, your open bitcoin trade transaction is closed out.

These cryptocurrency orders are meant to limit the sum of money that one-can lose: by exiting the bitcoin trade if a particular bitcoin price that's against the trade is reached.

For example, one might open a buy btcusd crypto currency trade & put a stoploss order of 20 pips, if the bitcoin trading price moves against the trader by 20 pips the stop loss cryptocurrency order will be filled and the trade will be liquidated hence limiting the loss to 20 points (pips) - Stop Loss Bitcoin Order Meaning.

Regardless of what you might be told by other traders, there's no question about if these stop loss crypto orders should or should not be used - stop loss order bitcoin orders should always be used.

One of the more difficult things in bitcoin trading is setting these stop loss bitcoin orders - Bitcoin StopLoss Definition - SL Order Example Bitcoin Trading. Put the stop loss cryptocurrency order too close to your entry btcusd crypto currency trading price & you are liable to exit the btcusd crypto currency trade due to random btcusd crypto currency market volatility. Place the stop loss crypto order too far away & if you are on the wrong side of the btcusd crypto currency trend, then a small trading loss could turn into a big trading loss.

Skeptics will point out several disadvantages of these stop loss btcusd crypto currency orders: that by placing them you're guaranteeing that, should your open bitcoin trade position move in the wrong direction, you will end up selling at lower btcusd crypto currency trading prices, not higher.

The skeptics also will argue that in setting stoploss order cryptocurrency orders you're vulnerable to exit a bitcoin trade just before bitcoin crypto currency market heads in your favor. Most btcusd crypto currency traders have had the experience of setting a these stop loss crypto orders and then seeing the btcusd crypto currency price retrace to that stoploss order btcusd crypto currency order level, or just below it, & then go in direction of their original bitcoin market trend analysis. What might have been a profitable btcusd crypto currency trading instead turns in to a btcusd crypto currency trading loss.

Experienced btcusd crypto currency traders always use stop loss crypto orders as they are a crucial part of discipline required to succeed in bitcoin trading because stop loss cryptocurrency orders can prevent a small trading loss from becoming a big loss. What's more, by diligently placing these stop loss crypto orders whenever you enter a bitcoin trade position, you end up making this important decision at point in time when you are most objective about what is really happening with btcusd crypto currency market, this is because most objective btcusd crypto currency analysis is done before opening a btcusd crypto currency trade. After entering bitcoin market a trader will tend to interpret the btcusd trading market differently because they are biased towards one side of the btcusd trading market, the direction of their bitcoin analysis - SL Order Example Bitcoin Trading.

Unexpected btcusd crypto currency economic news can come out of the blue and dramatically affect the bitcoin crypto currency trading price: this is why it's so important to have a stoploss order crypto order set for your open bitcoin trade. It is best to cut bitcoin losses early when a bitcoin trade position is going against you, it's best to cut your bitcoin crypto currency losses immediately rather than waiting for the loss to become a big one. Again, if you set your stop loss crypto orders when you are entering a trade, then that's when you're most objective as a trader - Bitcoin StopLoss Meaning.

BTC USD Crypto SL Order Definition

A key btcusd crypto currency question is precisely where to place this stoploss order cryptocurrency order. In other words, how far should you as a trader set this bitcoin stoploss order below your purchase bitcoin trading price? Many btcusd crypto currency traders will tell you to set pre-determined - max acceptable loss per btcusd crypto currency trade, an amount depending on your bitcoin trading equity balance rather than use bitcoin indicators for calculating where to place stop loss cryptocurrency trading order - SL Order Example Bitcoin Trading.

Professional money managers advice that you shouldn't lose more than 2 % of your btcusd crypto currency equity on 1 single btcusd crypto currency trade. If you have $10,000 in bitcoin capital, then that would mean that the max loss you should set for any one bitcoin trade is $200 - Bitcoin StopLoss Meaning.

If you open a bitcoin trade then that would mean you'd limit your risk to no more than $200 dollars for that particular bitcoin trade. In that case you would set your stop loss bitcoin order at 200 or the equivalent number of pips based on your bitcoin position size of the bitcoin trade that you've opened - SL Bitcoin Order Meaning - StopLoss Bitcoin Order Management - Bitcoin Money Management. The lesson of btcusd crypto currency risk management is a wide tutorial & it's explained under learn btcusd crypto currency equity management trading tutorials.

StopLoss Bitcoin Order Management

Most important question is how close or how far this stop loss cryptocurrency order should be set from the btcusd crypto currency price where you entered the btcusd crypto currency trade. Where you set the stoploss btcusd crypto currency trade order will depend on various factors:

Because there are no guidelines set in stone as to where you should set these stop loss crypto orders on a bitcoin crypto currency chart, we follow general stop loss crypto order setting guide-lines used to help place these stop loss bitcoin trading orders in the correct way.

Some of the general stop loss cryptocurrency order setting guide-lines used are:

1. Risk Percent - How much is one willing to lose on one btcusd crypto currency transaction. General stop loss crypto order setting rule is that a btcusd trader should never lose more than 2 percentage of the total bitcoin account capital on any single btcusd crypto trading transaction.

2. Market Volatility - btcusd crypto currency market volatility refers to the daily btcusd crypto currency trading price range movement of the instrument that you're trading. If a instrument routinely moves up and down in a range of 50 pips or more over the course of the day, then you can't set a tight stoploss order when you open a bitcoin crypto currency trade. If you do, you'll be taken out of the bitcoin trade position by normal bitcoin market volatility.

3. Bitcoin Risk : Reward Ratio - this is measure of potential risk to reward calculated before opening a bitcoin trade. If the bitcoin market conditions are favorable then it's possible to comfortably give your bitcoin crypto currency trade more room. However, if the btcusd market is too choppy it then becomes risky to open a bitcoin trade transaction without a tight stoploss order - then don't make the bitcoin trade at all. The bitcoin trading risk to reward ratio isn't in your favor and even setting tight stoploss order cryptocurrency orders will not guarantee profitable results. It would be wiser to look for a better btcusd crypto currency trade position to next time.

4. BTCUSD Crypto Currency Trade Position Size - if bitcoin trading size transacted is too big then even the minimum decimal bitcoin trading price movement will be fairly large in risk percent% terms. This means that you have to set a tight stoploss order for your btcusd trade which might be taken out more easily. In most cases it's better to adjust to a smaller btcusd crypto currency trade position size so that to give your bitcoin trade more room for fluctuation, by setting a reasonable bitcoin stoploss order level for this stoploss order cryptocurrency order while at the same time reducing the btcusd crypto currency risk for the btcusd crypto currency trade.

5. Bitcoin Trading Account Capital - If your account is under-capitalized then you will not be able to set your stop loss order crypto orders accordingly, because you will have a big amount of your money invested on one btcusd crypto currency position which will force you to place very tight stoploss order cryptocurrency orders. If this is case, you should consider seriously about if you have enough capital to trade Crypto in the first place.

6. Market Conditions - If the bitcoin market price is trending upwards, a tight stop might not be necessary. If on the other hand the btcusd crypto currency price is choppy & has no clear bitcoin crypto currency trend direction then you should use a tight stop loss order or not open any crypto transactions at all.

7. Bitcoin Time-Frame - the bigger the btcusd cryptocurrency time frame you use, the bigger the stop loss bitcoin order level should be. If you were a scalper bitcoin crypto currency trader your stop loss crypto orders would be tighter than if you were a bitcoin day trader or a bitcoin swing trader. This is because if you're using longer timeframes & you figure out the bitcoin trading price will be moving-up it doesn't make sense to set a very tight stop loss order because if the bitcoin trading price swings a little, your open cryptocurrency order will be hit.

BTCUSD Crypto Stop Loss Definition

The method of setting stop loss btcusd crypto currency orders that you select will significantly depend on what type of bitcoin trader you are. Most common used technique to determine where to set stop loss crypto orders is - resistance & support areas. These btcusd crypto currency support and resistance areas give good points for setting these stop loss order crypto orders as they are most reliable levels to set stoploss order cryptocurrency orders, because the support and resistance levels will not be tested many times.

Stop Loss Bitcoin Order Management

The method of how to set these stop loss bitcoin trade orders which you select should also follow the stop loss cryptocurrency order setting guide-lines above, even if not all these guidelines apply to your btcusd crypto currency strategy try to implement the guidelines which will apply to your btcusd crypto currency strategy depending on what type of trader you are.

Bitcoin StopLoss Definition - SL Order Example Bitcoin - StopLoss Bitcoin Order Meaning - StopLoss Bitcoin Order Meaning - StopLoss Bitcoin Order Management - Bitcoin Money Management

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