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Set Stop Loss for Crypto Orders in Bitcoin Trading - Where to Place Bitcoin Stop Loss

Setting Stop Loss Orders for Bitcoins in Crypto Trading

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

Since there are no hard rules about where to put these stop loss orders for cryptocurrency on a btcusd chart, we use general guides to help us place these stop loss btcusd crypto trading orders correctly.

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

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

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

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

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

5. Bitcoin Trade Account Capital - If your cryptocurrency account is under-capitalized then you will not be able to set/place your stop loss order cryptocurrency orders accordingly, because you will have a big/large amount of your money invested on one bitcoin trade that will force you to place very tight stoploss order crypto orders. If this is the case, you should think seriously about whether if you have got enough bitcoin trading capital to trade CryptoCurrency in the first place.

6. Market Trend - A tight stop might not be necessary if the bitcoin price is rising. You should use or set a tight bitcoin stop loss, or refrain from initiating any cryptocurrency trading, if the bitcoin price is erratic and lacks a definite direction in the bitcoin market.

7. BTC/USD CryptoCurrency Timeframe - the bigger the bitcoin time-frame you use, the bigger the stop loss btcusd crypto order level should be. If you were a scalper btcusd trader your stoploss order crypto currency orders would be much tighter than if you were a btcusd day trader or a btcusd crypto swing trader. This is because if you are using longer chart time frames & you figure out the bitcoin price will be move up it doesn't make sense to set a very tight bitcoin stop loss because if the bitcoin price swings just a little, your open crypto order will be hit.

Read Where to Place Stop Loss for Crypto Bitcoin Trades

The approach you select for placing cryptocurrency stop loss orders will depend heavily on your profile as a Bitcoin trader. The technique most frequently adopted to pinpoint effective locations for setting stop loss cryptocurrency orders centers on utilizing resistance and support zones. These Bitcoin crypto support and resistance areas provide excellent benchmarks for setting stop loss cryptocurrency orders, as they are considered among the most dependable levels, given that the support and resistance lines are generally not breached by the Bitcoin price on numerous occasions.

Placing Stop Loss Orders for Bitcoin Trades in Bitcoin Transactions.

When you trade cryptocurrency, your stop-loss orders should follow the standard rules for handling risk. Even though some rules might not be right for every case, you should still use the ones that work for your own trading style and goals.

Bitcoin Trade Where to Set a Stop Loss Bitcoin Order

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