Recently, I’ve received quite a lot of questions about basic trading concepts, especially what entry means in coin trading and how to use it effectively. Today, I want to share these experiences again to help you new traders avoid the mistakes I once made.

First of all, an entry is the point where you enter a trade—the price at which you start buying or selling an asset. If you close the trade exactly at this level, it’s considered break-even. This may sound simple, but choosing a good entry will determine a lot for your trading results.

But more importantly, you need to know how to protect your capital when your entry isn’t correct. That’s when Stop Loss comes into play. Stop Loss allows you to automatically close your order when the price moves against you by a certain amount, helping you minimize losses. When you buy, your Stop Loss must be lower than the entry; when you sell, your Stop Loss must be higher than the entry. I often see you placing Stop Loss too close to the entry, and this is very dangerous because the market usually fluctuates strongly, and you’ll get stopped out, only to then return to the entry point.

On the other hand, Take Profit is the order to lock in profits when the price reaches your target. For a buy order, Take Profit must be higher than the entry; for a sell order, Take Profit must be lower than the entry. I usually recommend that you set Stop Loss at a smaller distance compared to the range from the entry to Take Profit. This approach helps you make profits from many winning trades to offset the losses from losing trades.

The benefits of setting both of these orders in advance are truly huge. First, you save time because you don’t have to constantly monitor. Second, psychological pressure is reduced significantly when you already have a clear plan—typically, I recommend setting a take-profit/stop-loss level where your stop loss is around 0.5 - 1% of your account. Third, you can optimize long-term profits through proper risk management.

However, there are also risks you need to know. Stop Loss hunting is a fairly common situation when the market is volatile—you get stopped out, and then the market returns to the entry point or even reaches Take Profit. In addition, sometimes your position is very good, but the Take Profit gets hit early, causing you to miss out on even larger profit opportunities. But despite these risks, setting Stop Loss and Take Profit is still absolutely necessary—especially in Futures trading. If you don’t have Stop Loss, you could blow up your account in an instant.

Remember, entry in coin or any asset is only the first step. What matters is that you have a comprehensive plan with reasonable Stop Loss and Take Profit. “Eat small but stay long” is always the best strategy. When you trade more professionally, these two orders will become indispensable habits, helping you save time and significantly improve your trading efficiency.