In 2018, learn to place Stop Loss order on all crypto exchanges like Binace, bittrex -TrailingCrypto
In this tutorial, going to learn about how to place Stop loss order on any cryptocurrency exchange (Binance, Bittrex, Poloniex, KuCoin, HitBTC, CEX, Huobi pro, okex, CoinEx) using Trailingcrypto.
Stop loss order is typically used as a closing order to limit losses or lock in your profits on a long or short position. But they can also be used to open a position.
Stop Loss: Triggers the next order when the last market price hits the stop price. Next order can be Market Sell, Limit Sell or Trailing Stop Sell.
According to Investopedia:
What Is a Stop-loss Order?
A stop-loss is designed to limit an investor’s loss on a security position. Setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%.
Positives and Negatives
The advantage of a stop order is you don’t have to monitor on a daily basis how a stock is performing. This is especially handy when you are on vacation or in a situation that prevents you from watching your stocks for an extended period of time.
The disadvantage is that the stop price could be activated by a short-term fluctuation in a stock’s price. The key is picking a stop-loss percentage that allows a stock to fluctuate day to day while preventing as much downside risk as possible.
There are no hard and fast rules for the level at which stops should be placed. This totally depends on your individual investing style: an active trader might use 5% while a long-term investor might choose 15% or more.