I notice that many newcomers to crypto trading still do not fully understand some basic but extremely important concepts. Today, I want to share about what entry is and how to properly manage positions, because this is truly the foundation of a professional trader.

First is entry - the point of entering a trade, meaning the price at which you start a buy or sell transaction. If you buy a certain asset and then close exactly at the entry point, that trade is considered break-even. This sounds simple, but what exactly is entry is more complex when you combine it with Stop Loss and Take Profit.

Regarding Stop Loss - cutting losses, this is an automatic order to close a position if the price drops to your specified level. For a Buy order, the Stop Loss price must be lower than the Entry, and for a Sell order, the opposite. I’ve encountered situations where Stop Loss was hit during strong market volatility, then the price returned to the Entry point or even higher. Therefore, you shouldn’t set SL too close to the Entry to avoid being stopped out unnecessarily.

Take Profit - taking profit is similar; it automatically closes the position when the price reaches your target. For a Buy, TP must be higher than Entry; for a Sell, lower. Once I took profit and the price continued to rise, but that’s part of the game—you can’t catch every move.

The advantage of pre-setting SL and TP is that you save time — no need to constantly stare at the screen. Additionally, it helps reduce psychological pressure and manage risk better. A tip is to set Stop Loss smaller than Take Profit, so winning trades compensate for those hit by SL.

But there are also disadvantages. Besides Stop Loss being hit, sometimes you might lose a good position when the order hits Take Profit too early. However, despite the risks, setting SL or TP is extremely necessary — especially when trading Futures, because without a Stop Loss, you risk blowing your account.

When you start trading more professionally, Take Profit and Stop Loss are two indispensable orders. They help you save time and make your trading more effective. Eat less but sustainably—that’s the secret to long-term survival in this market.