I just realized that many newcomers to crypto trading are still unclear about basic concepts like Entry, Stop Loss, and Take Profit. Today, I will share what I’ve learned from trading experience.

Let's start with Entry. Entry is your point of entering a trade, meaning the price at which you start buying or selling an asset. If you close the trade exactly at this Entry point, it’s considered break-even. Pretty simple, right?

But the important thing is that after entering a trade, you need to know how to protect yourself. That’s where Stop Loss comes into play. Stop Loss, or SL, helps you automatically close a losing position when the price drops to a specified level. For a Buy order, the Stop Loss must be below the Entry. For a Sell order, the Stop Loss must be above the Entry. The key is not to set the Stop Loss too close to the Entry because the market often fluctuates sharply, and you might get wiped out.

Now, let’s talk about Take Profit, or TP. Take Profit allows you to automatically lock in profits when the price reaches your desired level. For a Buy order, Take Profit must be above the Entry. For a Sell order, Take Profit must be below the Entry. I usually set the TP higher than the SL to optimize profits; this way, winning trades can offset losing ones.

What are the benefits of setting both orders in advance? First, it saves time because you don’t have to constantly monitor the trade. Second, it reduces psychological pressure since you’ve clearly defined acceptable take profit and stop loss levels, usually around 0.5% to 1% of your account. Third, you can maximize profits by managing a reasonable risk-reward ratio.

However, there are some drawbacks to keep in mind. Sometimes, the market moves strongly, and your Stop Loss gets hit, only for the price to bounce back. Or, your entry was perfect, but you hit the Take Profit too early, and the price continues to rise. Still, setting SL and TP is essential, especially in Futures trading, because without a Stop Loss, you could lose your entire account.

My goal is to make small, consistent gains over the long term. When you start trading more professionally, setting Take Profit and Stop Loss for each trade becomes mandatory to save time and improve efficiency. That’s the secret to longevity in the crypto market.