Trading strategy for stopping a loss | Don't trade all at once!

Key Takeaways

in this video we're going to show a strategy for protecting trades using stop orders in previous videos we showed how to effectively use stop orders in general but now we are going to explore more advanced options that are available to us let's begin with our current setup we are a long point zero two five Bitcoin we purchase this Bitcoin in a previous video we had a stop order configured but now what I want you to look at is in our open order section we have to stop orders now configure we don't really know what the price is going to do now instead of having a single price that determines the fate of our trade it is in our interest to break this order up into multiple orders that way we have a higher chance of staying in this trade because ultimately we don't want to exit the trade we want the trade to go in our favor now if we put a stop order where the entire fate of our trade is determined by a single price and we will be taking out of the trade all at once what we want to do is break this trade up that way we have larger chance of staying in the trade as long as possible now that is what I have done with these two orders that you see here now why do we have two orders the reason we have two orders is because with GDX the lowest amount that we can actually place an order for is point zero one Bitcoin if we try to do less than point zero one Bitcoin they will give us an exception they will throw an error to us and say hey this isn't allowed so we need to be able to just place an order with a point zero one Bitcoin since we have point zero two Bitcoin I was able to break this down into two pieces we have the first piece at is point zero one Bitcoin the second piece at is point zero one five Bitcoin I want you to look at the two prices the first price that we have is 3600 so Bitcoin drops down to 3600 this first order will execute when the first order executes our trade will be cut in half it will be reduced our risk will be taken off the table but we will still have point zero one Bitcoin on the table potentially giving us profits if Bitcoin Rises if Bitcoin falls further to thirty five hundred then our last piece will be taken off the table now this gives our trade maximum flexibility it allows us to stay in the trade as long as possible as we are in the trade we are exposed to potential upside which is exactly what we want when we are trading so we see here that bitcoin was rising and then it turned rising and then we had a pivot point just here we came down down down down down and we hit a pivot point just here we purchased Bitcoin right around the 30 it was about thirty eight hundred dollar level now Bitcoin has rose we had a big green candle just on this highlighted day and then we base we went sideways now it looks like Bitcoin is going to go higher right here if you just see if Bitcoin this last pivot point is the point that we have chosen to put our stop orders now Bitcoin drops down to that level it's possible if it breaks through that level it could be going much lower so we have two orders to stop orders configured our first one at 3,600 our second one at 3,500 now having two orders instead of one gives us much more flexibility if you want to break your order down into as many small pieces as you can on GDX those small pieces are point zero one bitcoin hope this video was helpful please like the video subscribe and support this deep lizard Channel thank you