I've just realized that many newcomers to crypto trading still don't fully understand the most basic concepts. Today, I will explain Entry, Stop Loss, and Take Profit – three things that are essential for effective trading if you want to master them.

First is Entry. Entry simply refers to the price point where you start a position, whether buying or selling. If you enter a trade and close exactly at that Entry point, you break even. Pretty straightforward, right?

But the important part is knowing how to protect yourself when the market moves against you. That’s where Stop Loss comes in. Stop Loss, or SL, is an automatic order to close your position if the price drops to a specified level. For a Buy order, the Stop Loss must be set below the Entry. For a Sell order, it should be above the Entry. The key is not to set the SL too close to the Entry because during strong market volatility, you might get stopped out only to see the price bounce back to your Entry point. That happens quite often.

Now, let’s talk about Take Profit, or TP. What is TP? It’s an automatic order to lock in your profits when the price reaches your desired level. For a Buy order, TP should be set above the Entry. For a Sell order, it should be below the Entry. Setting TP is similar to setting SL but in the opposite direction.

I see many traders skip setting predefined Take Profit and Stop Loss levels, but that’s a mistake. When you set these levels in advance, you save a lot of time because you don’t have to constantly monitor your trades. Plus, it reduces psychological pressure, knowing that your losses are controlled within an acceptable range, usually 0.5% to 1% of your account.

A useful tip is to set the Stop Loss closer than the distance from Entry to Take Profit. This way, when you make multiple trades, the profits from successful trades can offset the losses from those hit by Stop Loss.

However, there are risks too. During strong market swings, you might get stopped out only to see the price bounce back past your Entry or even hit your Take Profit. Sometimes, you enter a perfect trade, but the price hits TP too early, and then the market continues to rise sharply. Still, setting SL and TP is crucial, especially when trading Futures. If you ignore Stop Loss, you could risk blowing your account. Trade conservatively and sustainably.

In summary, if you want to trade more professionally, Take Profit and Stop Loss are two essential orders. They help you save time and improve the efficiency of your trades. Understanding what TP is and how to use it properly will significantly enhance your risk management.