A stop-loss is an order that you place on your exchange in order to sell a coin when it reaches a particular price. A stop-loss order is developed to reduce a trader's loss on a position in a security. It is good to have this tool at times when you are not able to sit in front of the computer and monitor yourself.⠀
Why Are Stops Important?⠀
The first logical question to answer is - what does a stop-loss represent? A stop-loss is an order placed on your exchange to sell a coin when it reaches a specific price. Furthermore, a stop-loss order is designed to mitigate an investor's loss on a position in a security. Even though most traders associate stop-loss orders with a long position, it can also be applied for a short position.⠀
A stop-loss order eliminates emotions that can impact trading decisions. This can be especially handy when one is not able to watch the position. Stop-loss in Crypto is critical for a lot of reasons. However, there is one simple reason that stands out - no one can predict the exact future of the Forex market. It does not matter how strong a setup may be, or how much information might be pointing to a particular trend.⠀
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