How to Set a Stop Loss on Binance – Proper Way to Use Stop Limit Order (Live Ripple Example)

In this video I a'm going to show you how
to trade cryptocurrency on Binance by setting proper stop losses and limit
orders live using Ripple as an example coming up right now Welcome back Satoshi Scoper's, Allan here. If you're new to this channel and you want to learn more about investing
trading or anything else related to cryptocurrency make sure to subscribe
and hit that Bell so you don't miss anything so now that you have set up
your Binance account and loaded some Bitcoin on to the account you are ready
to purchase your first old coin so what you do is come down from the dashboard
to this section where you can see the different pairings you can choose in my
case I always use BTC so I'll be in this section but if you're going to use a
theorem or a different coin like BnB then you can come here and choose what
you want a quick tip is if you like a coin especially say etherium then you
can put a star on it and it will be under your favorite section and you can
easily find it when you want to so now let's go back to the BTC markets another
function that is available for you is you can click on the headings here and
it will show you the highest to the lowest of each category so for example
if I click on the 24-hour change once it will show you the price of a coin that
has come up the highest in the 24-hour period but if I click it again it's
going to show you the price of a coin that has dropped the lowest so in this
case is 7.7 6% by the MCO coin so that could be a trading strategy for you I
always look for the coin that has dropped the most and an indication that
it will go back up that's what I want to trade but it's up to you how you trade
but if you already know what coin you want to buy you can just come up to here
and type in a particular coin in this case I'm just going to do X RP or ripple
as an example so once I type that in you come to the pair and click on it it will
bring you to this page which is the equivalent of the basic page but you can
go to advanced if you're using a technical indicator for me I like to use
advanced so we might click on advanced you can see the page looks slightly
different than the basic but it's very similar except this page is dark instead
of white and you can add indicators so when you come down to this section you
can see there's a limit market and stop limit these are the three ways you can
buy and sell a coin so let's do the market
first so a market order is the simplest and easiest way to buy and sell a coin
so basically you're just buying off the market price so you're going to pay a
bit more but you're gonna get that convenience and it's perfectly fine for
a newbie or someone who's buying it for the first time and they're not so
confident so all you would have to do is click here and I'll put in ten people
that I want to buy as an example and press buy and you will see your order
will fill automatically there so in your trade history section you can see that I
have bought ten Ripple so that's easy enough now if you want to increase the
level of difficulty you can click on the limit section here so you would use a
limit order when you're not happy to pay the market price so it's like you want a
discount if you know or you think that the price is going to come down to for
example 8,000 for ripple then you would put the price here at 8,000 this is
saying that I'm not willing to buy ripple at any more than 8,000 satoshis
so the advantage of this is you're going to get the coin at a lower price but
there's the risk that you order won't feel at all if the coins price does not
come down to reach 8,000 Satoshi's so you could miss the gains if it goes
straight up from here now this is up to you which choice you want to go for the
market order safer but higher price or the limit order lower price but you may
not get filled so now say I want to buy 40 Ripple
at 8,000 satoshis I've put in 40 and you would press buy or you can click on the
percentage you want maybe I want to buy 75% of my holdings then you can press
buy here now you can see it doesn't show up in your trade history as the price
isn't still 8347 it has not come down to reach your 8,000 mark yet so it should
be in your open orders and if I click on it you can see here
an open order pending for 8,000 Satoshi's of 34 ripple coins so if you
want to cancel that that's also very easy as it hasn't filled yet you can
press cancel and now the last method is a stop limit this is very similar to a
limit order however you're adding a stop there or a trigger so this means that
your order will not be appearing on the order books until the price has reached
your stop or your trigger point so for example if we were going to use the same
value as our limit order you would click on any of these and then change the
value to 8,000 for our limit and let's set the stop for seven thousand nine
hundred and the amount of ripple will be 40 coins like before so in summary what
this means is that your order will trigger and appear only if and when the
price of ripple comes down to seven thousand nine hundred Satoshi and your
order will be placed between seven thousand nine hundred and eight thousand
satoshis to buy the ripple coin so I just put the order in and click buy for
you so let's read it if the last price drops to or below seven thousand nine
hundred BTC in order to buy forty XRP at a price of eight thousand satoshis will
be placed so this is the same as what I mentioned to you if it triggers up seven
thousand nine hundred your order will be placed at eight thousand so the price
could be in between these two levels eight seven thousand nine hundred and
eight thousand so we click yes and you can see again it's in the open orders
now so that's the three ways that you can purchase your coin so with a stop
limit I don't normally use this to purchase a coin I normally just use a
limit order however for a stop limit I always use this to sell to set my stop
loss every time I buy a coin and also to set a target level to take
profit and sell at that level so I will show you this now so first of all let's
set a stop loss I'm gonna say I want my stop loss to be 8,000 so most people
would show you that you put 8,000 here as a stop and 8,000 as a limit and say I
want to sell 9x RP so this is a way of doing a stop loss
however a proper way of doing a stop loss is to set your limit at a lower
level than your stop so if your stop triggers at 8,000 you want to sell and
maybe seven thousand nine hundred but this depends on the volume of your coin
if it's a small cap coin which can be involved in a pump and dump scheme then
you may need to set your limit at a lower level for me I if it's a small
coin I would go as low as around 10% so maybe 7,200 then you can press sell
but if it's a high volume coin like ripple then 7900 may be enough so in
summary this is saying that once the price of ripple comes down and hits
8,000 or below then you want to sell nine ripple coins at 7,900 Satoshi's
this is very important and you must do this every time you buy a coin because
it removes the chance of you losing a ton of money so if you're asleep or
you're going for a walk or you got work and your coin dumps 50 or 60% in the day
which can happen in a crypto world then you're not gonna take that loss because
you've set your stop limit at 8,000 so that's that's where you're going to be
selling off at and if the coin comes down to 4,000 or 5,000 whatever it is
you're not at a loss at that point and maybe that would be a good time for you
to buy in again but the point is you have mitigated your loss now another
thing you can do which I also do is you set a target profit level which you can
sell and if you're going to sleep once again you could wake up and your target
was hit during the night and then it's sold for you we
is perfect then you don't have to worry about it so what you do is in this
example I want to set my stop at eight thousand six hundred and I want to sell
at 8500 so now this is saying that once the coin hits eight thousand six hundred
Satoshi's I want to sell nine vipul coin at 8500 Satoshi so it's taking a profit
at a price higher than this level right now so now that should cover all the
different ways you can buy and sell your coin on buy Nance so a couple of other
things I want to mention to you before you go out there and start buying your
old coins is to always do your own research before you invest any of your
money into cryptocurrency this is very important you don't just really nearly
in go and buy random coins and the other thing is whether it would be by Nance
Beatrix BitFenix or a coin base you should never keep all your money on
these exchanges as it can always get hacked and be stolen you should keep
most of it in an offline cold storage wallet like maybe a legend nos or a
treasure and then you can have some of your trading Kryptos on your exchanges
like finance or coin base and even that I would not store them on just finance
or just coin base I would always split them between four or five exchanges then
if you get hacked you're only going to lose twenty to twenty-five percent a
small amount of what you have on these exchanges and their Mane on the
exchanges should only be about twenty to thirty percent max on what you have
overall so this will not affect you and it will keep you from losing all your
money question of the day what is your favorite trading pair on buy Nance is it
Bitcoin or theorem or maybe even the bye Nance coin let me know in the comment
section below thank you so much for checking out this video make sure to hit
that like button if you thought this video is valuable to you and always
remember to follow this at

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