Many beginners know how to buy but not when to sell. Take-profit and stop-loss solve the "when to exit" problem. Register on Binance and download the Binance app.
Stop-Loss: Limiting Downside
Core principle: No single trade should lose more than 2-3% of total capital. Place stops below recent support levels, or simply 3-5% below entry for beginners. In futures, account for leverage — 5x means 3% price move = 15% actual loss.
Take-Profit: Locking Gains
Basic rule: Take-profit should exceed stop-loss distance. Aim for 2:1 or 3:1 reward-to-risk ratio minimum. This way, even 50% win rates are profitable long-term.
Scaled Take-Profit Strategy
Sell 30% at +5%, another 40% at +10%, keep 30% with a trailing stop. Balances locking profits with capturing larger moves.
Setting Up on Binance
Spot: Use OCO orders (simultaneous take-profit and stop-loss). Futures: Set TP/SL directly on your position.
Common Mistakes
Not setting stops at all. Setting stops too tight (normal volatility triggers them). Moving stops further away during losses (never do this).