# Do you really understand Entry, Stop Loss, and Take Profit?

Today I will explain 3 essential concepts that if not understood, you can easily incur losses in crypto trading.

# # **Entry - Entry Point**

The entry is **the price you decide to buy or sell**. It's that simple. If you buy BTC at 40,000 USDT and then sell at 40,000 USDT, your order breaks even ( error - 0 profit ).

# # **Stop Loss (SL) - Essential Stop Loss Tool**

**Definition:** SL is the price level that, if touched, the order will **automatically close** to limit losses.

**How to place:**
- **Buy Order:** SL must be lower than Entry (, for example: Entry 40,000 → SL 39,000)
- **Sell Order:** SL must be higher than Entry (, for example: Entry 40,000 → SL 41,000)

⚠️ **Note:** Do not set the SL too close to the Entry, as it may be easily triggered when the market fluctuates significantly.

# # **Take Profit (TP) - Automatically take profit**

**Definition:** TP is the target interest price level, when reached will **automatically close profitable orders**.

**How to place:**
- **Buy Order:** TP must be higher than Entry ( for example: Entry 40,000 → TP 41,500)
- **Sell Order:** TP must be lower than Entry (, for example: Entry 40,000 → TP 38,500)

# # **Why use SL + TP?**

✅ **Benefits:**
1. **Save time** - No need to stare at the chart
2. **Reduce stress** - A peace of mind because there is a clear plan
3. **Optimize P&L** - You can set SL smaller than TP, so that many winning trades can offset a few losing trades.

⚠️ **Disadvantages:**
- **Stop Loss Triggered:** A volatile market may trigger your stop loss, but the price returns to entry.
- **Missed significant profit:** Sometimes the price continues to soar after your take profit has been triggered, you will regret it.

But **none of those risks should be a reason for you to abandon SL**, especially in Future trading - no SL = **account liquidation**.

# # **Conclusion**

Entry, SL, TP are the **power trio** of professional traders. Eating less but sustainably always outperforms eating a lot and dying in one trade.

Start from today - every order must have a ready EXIT plan.