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How Do You Read Where to Place a Stop Loss CryptoCurrency Order in Bitcoin Trading?

Bitcoin Trade Where to Set a Stop Loss Crypto Order in Bitcoin 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 cryptocurrency order will depend on various factors:

Because there are no guidelines set in a stone as to where you should put these stop loss order cryptocurrency orders on a btcusd chart, we follow general stop loss cryptocurrency order setting guide-lines used to help 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 Crypto 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's 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 bitcoin crypto 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 crypto price movement will be fairly big 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 crypto 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 crypto 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 amount of your money invested on one bitcoin crypto 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 - If the bitcoin price is trending upwards, a tight stop might not be necessary. If on the other hand the bitcoin price is choppy and has no clear bitcoin market trend direction then you should use/set a tight bitcoin stop loss or not open any cryptocurrency transactions at all.

7. BTC/USD CryptoCurrency Timeframe - the bigger the bitcoin crypto time-frame you use, the bigger the stop loss btcusd crypto order level should be. If you were a scalper bitcoin trader your stoploss order crypto currency orders would be much tighter than if you were a btcusd crypto 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.

How Do I Read Where to Place a Stop Loss Crypto Order in Bitcoin Trading?

The technique of placing stop loss cryptocurrency orders that you choose will depend on what type of bitcoin trader you're. Most oftenly used method to figure out where to set stop loss cryptocurrency orders is - resistance and support areas. These bitcoin crypto support & resistance areas give good points for setting these stop loss cryptocurrency orders as they are most reliable areas to set stoploss order crypto orders, because the support & resistance levels will not be hit by the bitcoin price many times.

Trading Bitcoin Place Stop Loss Bitcoin Orders in Bitcoin Trading

The method of how to set these stop loss order cryptocurrency orders that you choose should also follow the stop loss cryptocurrency order setting guide-lines above, even if not all the guidelines apply to your bitcoin strategy try to implement the trade rules that will apply to your bitcoin strategy depending on what type of trader you're.

Bitcoin Trade Where to Set a Stop Loss Bitcoin Order

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