How To Use Stop Loss And Take Profit On Binance?

This “trading with limit orders” is long been a traditional practice on financial markets from hundreds of years ago. The rules for this seem to be pretty simple: Take a stock that you think will go up or down and place an order to buy or sell shares at a price that is above the current market price – usually the bid – and below the current market high – normally the ask. This is done by simply entering your stop loss number as a negative figure in either case. Thus, if you have an order for 1000 shares of Wal-Mart Corporation (WMT) at $100 per share, where they are currently trading around $97, you would set your stop loss at $97 so as to protect yourself from having all those shares sold without your intervention leaving you with nothing but a big paper claim check somewhere in South America.

The two most popular types of stop losses are 10% too low and 5% too low.

One common trick used by traders is to use these methods with different stocks within one same portfolio, which makes it even more confusing for investors. For example, I might buy 1 thousand dollars worth of Apple (AAPL) at $100 per share without placing any stops because I like their products and think they will continue to rise; whereas my second investment portfolio would include another stock such as Johnson & Johnson (JNJ), which I am bullish on and plan to trade using the standard 10% tactic bought them around 25