Its actually one of the easiest thing to do in crypto keeping it is the real hard part, is the real, tough skill today im going to be showing you guys a very, very, very important tool that youre going to be using your whole trading career, and that Is the main stop loss and that star plus, is there to help you with risk management as well as taking profits? This is a show. You do not want to miss yo, yo yo whats up guys, welcome to masterclass welcome to crypto banter im sheldon the snapper before we begin hit that like hit that subscribe, button make sure youre following us on twitter, make sure youre following us on instagram join the Biggest and the baddest community out there, you know we got the two shows where we teach you guys every day and the whole purpose of masterclass is to make sure you understand. The shows and big big big topic stop loss guys what is a star plus, because a stop loss is a risk management tool. It means that in trading we predict at specific times either of news other off of charts, and the main thing of a stop loss is when we predict were predicting the market to go in one way right. If it goes wrong, what happens we end up? Getting stuck in a coin, we end up getting stuck in a position and we know such a volatile market. If we buy at the wrong time, we can really get hurt so by having a stop loss, youre able to reduce your risk youre able to manage your actual risk and start planning your trades rather than just entering the market.

Why is it so important guys? You can literally get to a point where, if you buy the top – and you do not have a stop loss, you can literally lose 80 of your account and thats the sad reality of crypto. So the importance of understanding that we can actually look after ourselves and there is a tool to help us is very big, and this is the big tool im teaching you guys today. I think lets get into it. Lets go have a look as you can see guys when im talking remember. We have the coin panel im gon na be using coin panel. Im gon na be using finance today descriptions uh the links are in the descriptions below remember coin panel. Guys is a charting service that we give with the show where you are able to see our charts and when im, giving you guys charts you can see. I always give you buy zones, and i give you a more or less stop loss area and i sort of help give you structure, but in order to understand that that, when youre taking these trades and how to set the stop loss can be much tricky. It can be quite tricky at times so im going to be showing you guys the charts of coin panel and showing you the basic setup on how all exchanges work with the stop loss coin panel itself. Let me just get into that mode. You can see theres a stop limit over there as well as binance.

You can see theres a stop limit over there. Kucoin ftx, all of the exchanges all have the same sort of structure. So when you go into your binance or any exchange, and you get to your normal dashboard, your trading dashboard and you scroll down, you will see the order books on the left. Youll see your limits, your markets and your stop limits. So im going to be showing you stop limit, so we know guys in order to put a stop loss with a bull position, meaning that we are predicting the market to be going up. A long position. Sorry so meaning that im entering the market im buying a cryptocoin right now, im expecting it to go upwards. If it goes wrong, how do i protect myself, okay and thats, where the show comes in this is where we come and help you guys risk management. Now, as you can see, weve got limits, we have markets and we have stop limit limit and market. We use to enter those actual positions. Now the difference between limits and market is limit. You have youre able to select the price that you want to buy at. The only thing is you cannot control the time, meaning bitcoin is 44 000. Now i see it going down to 43 as an example, i would rather buy it at 43 than buy it. 44 right now, so i can go to limit now. I can go put in 43 000 and what it means is, if theres a seller for the amount that i want to be buying at that point at that price, it will go through so ill basically place.

This over here, as we can see, places and then gets put into the order book, so you can see our order gets placed over here and, if theres someone thats willing to sell or buy for that specific price, the order will go through. So you can control the price you just dont know. When someone will buy or sell your coin, then we have the market and what the market is its the quickest way to get in and out of the market. So you have control of time because you can get in and out quickly. The only thing is you: dont have control of time of price, and what i mean by that is when you markets executing youre, buying or youre selling youre buying the nearest person thats near you with enough capital that will take that order, um for what youre wanting So meaning that if i want to be buying bitcoin now uh and i want to market execute, it will take the nearest guys that are selling on this and fill up as much as big. As my position is at may, bar from a few different people. And my my basic my order will get executed between either one person or a few people at different little prices. Now, when market executing its very important larger volume, coins is the best with market executing because it means, when im buying at this time, im selling ill, get it very near to what the actual price is of the coin because of the volume and theres.

So many people buying and selling so by using these two markets, you dont have control of price, but you have control of time so thats the difference between those two limits. Your orders get put into the the order book now weve got the stop limits. Now, im going to be teaching you guys the long stop limits, meaning that im taking my dollars im buying the coin im predicting the coins going to go up or youre watching a show, and someone said the coins going to go up right now. What happens if it goes wrong? How do i protect myself now we know that limit sits in our order book. We know theres an order book. If you limit ordering the differences with a stop limit, is you are able to set a price below the price that you bought it at without it executing without it actually going into the order book and thats, where the little trick comes, where you got to stop And you got to limit and what they like to call the stock is a trigger price. Now let me give you an a quick example of what i mean by that now. If i jump to coinpanel and we have a look lets get back into watchlist mode there we go and lets use bitcoin im going to be using bitcoin as an example. Today there we go okay, so with bitcoin. Now i gave you a zone right now. I give you a zone, i say guys.

This is where we want to buy. Then i say guys we dont want to go lower than the previous low, so stop plus should be sitting in that sort of region. So now you look at and im gon na, for the sake of this call, im gon na say that this was the bar zone, and this is where im selling a stop loss now were in bazoon, okay, cool children said were in barcelona. Now we go, we take our dollars. I want to get in the market we are currently in barzo. Now the difference between limits and markets is, if we in barcelona right now, im able to come and market execute and if it does that you can see it buys my bitcoin now im in the position. Okay and now sometimes well be on the show, and we will be up here somewhere and im, saying guys were gon na come down here, but were currently in this position over here now i know: okay, i can go and set a limit order, because why must I pay 44 now when sheldons saying its going to come down to 43 and thats how you can get in so now either way you have not bought your bitcoin okay. Now i say guys: yeah is the stop loss that we need to be putting at. So in my stop, loss currently im going to use 41 000 as an example. Now i go to stop limits.

I have my bitcoin and im gon na put 41 000.. Okay now stop. This is called the trigger price means that when the price gets to 41 000, then orders will only go live in the order book. So until then, the the orders will not go live in the order book. Why? Because if it sits in the order book, someone would take it. Obviously bitcoin is 44 000 now and if you put an order in of 41 000, someone will obviously take it. So this is where the little tool comes in, where they dont put it in the order book. They only put it in when this price is triggered. Once 41 is triggered, then your orders get put in the order book and the whole goal is ive. Taken. My um usdt now ive taken my fiat. Ive bought bitcoin and now im expecting to go up, but if it drops – and it goes wrong after three percent or four percent – please sell me back into dollars in case the market continues to fall and now is actually one of the best examples to show you Guys weve just come off a few big dumps with bitcoin, so by understanding that this market can at any point, have a very quick, 18 19 percent drop. You need to make sure that stop loss is always sitting in the areas, because i would rather lose three percent and have capital to buy the dip and thats the whole purpose of actually the stop loss.

So now, ive set 41 000 thats. Where i want the stop loss to be, then you can see theres a limit now. This is very important guys. You never want to set these two figures the same. So basically, you have the trigger pass, let me trigger, then you got a limit and what this means is they want to, but they want you to give them a range meaning because because your order is going to go, live at 41, 000, sometimes theres. A really big whale guys, theres, a guy that comes or big person that sells, and you get this very big candle quickly, which means sometimes they can literally, if theres, no buy or seller. At that specific point, it can literally drop straight through that price, so meaning, if someone really sells big, it can drop completely through 41 and if it drops to 41 and theres no buy or seller there, your stop loss wont trigger, which means youre still stuck in The actual position so now theyve created a range where you have the limit and i usually use a one percent sort of limit for this and ill show you what a one percent is its more or less forty thousand forty thousand six hundred, and what that means Is youve got a trigger price but in case it misses that trigger price. You need to make a range that anywhere between these two values over here, make sure i get out of the market.

So you can see all these orders over here and sometimes when a big guy sells it can break through, but usually especially with bitcoin theres. Definitely a lot of volume that if you create a range, its a much higher chance of your stop loss going through. So i always use a one percent: even a half, a percent for bitcoin or one percent uh for the all coins is always a good thing, but please make sure you do not put these the same because thats, where they catch you. It can fall straight through your stop loss and then youre still stuck in the actual position. So now, if i set that at 41 000 – and i set this one over here at 40 – 600. – there – we go and ill go. Take this order over here, 100. So thats the amount that you want to be putting under stop loss. Sometimes you can put different percentages of your stop loss and i can now place that if the price gets to 41, you will then get put into the order book and if it misses anywhere at 41, it will make sure it gets you at between 41 and 40 600 doesnt mean its going to get you out of 46 uh 40 600, but it means anywhere but see that it will make sure that you get out of the market. So that is a very key tip to make sure of, and as you can see, it then places the order at the bottom and now the whole purpose of this is sheldons.

Just given me a trade he told me to buy over here, hes told me to put my star plus now, youve bought youve put your stop loss. You can breathe, meaning that if any time the market falls or completely drops, it will stop you out and you will lose lets, have a look three percent. Okay. So now this is called managing your risk, so youre, risking three percent and sheldons saying, were gon na. Go to 55 000 after this, so you can see that youre risking three percent for move that can make you 20, so thats risk management, thats planning now stop plus is used. I buy, i put my stop loss im only risking three percent. Now, all of a sudden, the coin starts to go, and it really starts to move and lets, show you, for example. Now it really starts to move, and this is where your stop loss is now we start to move the first thing you want to do and do this for yourself make a little rule every time a trade goes into three percent or five percent. I put my stop loss at entry because now youve bought now we start moving now you take that stop loss and you move it up. How do you do that? You jump back over here? You can see its a order that is sitting over here. You cancel it and now you move it to the next figure lets say its 42 000.

make sure theres a difference between the two 41 600. There we go. We can see the difference between the two okay and now, all of a sudden. The market starts moving. Moving moving bitcoin goes up and we know the importance of higher lows. So with this i like to track it up track it up. So all youre going to do is youre going to come. Cancel your stop. Loss put a new one in so what does that mean guys? It means ive entered a trade im protecting my risk now ive made the correct trade im. Making money in the actual market lets get the charts off here now im making actual money in the actual market. Now i use my stop loss as a take profit tool. I dont know where the top is im not predicting where bitcoin is going to go, but i can take that stop loss and i can track it up in profits as we go and at any point we get a big massive pullback in the market. Guess, where youre getting stopped out and now you have your dollars back to go by the bottom, so guys little tool for you guys it is such a big tool. Ive used it always you got your huddle. You got your trading. I like using this. For my trading portfolio its there to protect you its there to use with the structure its lets use the strategy, its also very well used for take profit strategy, stay tuned still, amazing, amazing master classes coming up.