What are some common mistakes to avoid when using trailing stops in cryptocurrency trading?

1 answers

• Nov 24, 2021 · 3 years ago
  When using trailing stops in cryptocurrency trading, it's important to avoid setting the stop loss too close to the current price. This can lead to premature triggering of the stop loss and unnecessary losses. It's also crucial to adjust the trailing stop as the price moves in the desired direction to protect profits. Lastly, traders should not solely rely on trailing stops, but rather incorporate them into a comprehensive risk management strategy that includes other techniques like profit targets and position sizing.
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