Stop Loss (stop loss order) This concept allows you to automatically sell an investment vehicle (stock, crypto, forex, etc.) when it drops to a certain level, preventing you from further losses.
One of the most important concepts that everyone who is new to the world of investing should definitely learn: Stop Loss (stop the damage order). This concept is when an investment vehicle (stock, crypto, forex, etc.) drops to a certain level by enabling it to be sold automatically Prevents you from further damage.
In a nutshell: “Exit without further damage” is the command.
But it's not that simple. Let's find out all the details together.
❓ What Does Stop Loss Mean?
Stop Loss is translated as “stop loss” in Turkish. If an asset you trade in the market falls to the level you set, the system will automatically close your position at that point. Thus, even if you are not at the front of the screen, your capital is protected.
💡 The main idea:
“If it falls below that level, sell it. I don't want to get hurt any more.”
📌 Let's Explain By Example:
— XYZ share bought from 100 TL
— Stop loss level set at 92 TL
— The system automatically sold when the stock dropped to 92 TL
✅ The investor did not suffer any extra losses even if the price was 85 TL!
🎯 Why Use Stop Loss?
📊 How To Use It In Which Markets
Forex:
⚠️ The risk is great due to leveraged trades. If there is no stop loss, the capital may run out in a day.
🔁 Usually a loss tolerance of 2-3% is used.
Stock:
📉 Putting it just below the support level is common strategy.
📌 It is common to set a loss limit between 5% and 10%.
Cryptocurrencies:
🕐 It is open market 24/7. The falls can be very harsh.
📈 The most ideal method: “trailing stop loss” (trailing stop)
🔁 Constant Stop Loss vs Trailing Stop
🔒 Fixed Stop Loss: It remains constant at the price level you set.
📈 Trailing Stop Loss: As the price rises, the stop loss level also automatically goes up. Provides protection even when winning.
Example:
— BTC 100,000 dollars
— Trailing stop %5
— If BTC rises to $110,000, the new stop level would be $104,500
— If BTC falls, the sale takes place from there = profit is maintained
❌ Common Mistakes Investors Make
🚫 Not putting a stop loss
🚫 Putting a stop in a very narrow range (early sale in price fluctuation)
🚫 To intervene manually when approaching the stop
🚫 Using the same percentile in every transaction (every asset is different!)
📌 When to Use
✅ Especially in fast-moving stocks
✅ In high-risk products such as crypto
✅ If you feel that you do not have the upper hand in investment psychology
✅ If you can't keep track of your position throughout the day
🧠 Advice to the Investor
Stop loss does not harm you, on the contrary It is like a shield that limits the damage.
Those who use this tool correctly make big gains, preventing small but constant losses over the years.
Don't forget: Unplanned gain is chance, planned loss is a strategy.
what is stop loss, stop loss order, how to put stop loss, trailing stop loss, investment risk management, forex stop loss, stock market stop loss, crypto stop loss strategy, investment psychology, stop loss with technical analysis
.png)