SL & TP: The Beginner’s Guide to Protecting Trades - Part 8 of Crypto 101 with Fere AI
Most traders lose money due one reason in the beginning - not having an exit plan.
They buy the token, watch how it moves, panic when it goes down and get greedy when it goes up.
They are driven by emotions instead of proper rules and structure.
Stop loss and take profit exist to fix that. They are not some advanced tools but basic survival skills.
And you can learn to use them and set them on your holdings right from chat, using Fere AI.
What a Stop Loss Really Does
A stop loss is your emergency exit. It automatically closes your trade when the price hits a level you choose.
Its job is simple - limit damage when you are wrong.
Every trade can fail and a stop loss makes sure one bad idea does not wipe you out.
Ask Fere Pro:
“Explain stop loss like I am new to trading”
You will get a clear explanation without trading jargon.
What a Take Profit Really Does
A take profit is the opposite. It locks in gains when the price reaches a target.
Most beginners never take profits because they wait for more.
Then the market reverses.
A take profit removes greed from the equation since you decide your exit before emotions take over.
Ask Fere Pro:
“Where should I take profit on this trade”
Fere AI looks at price action, momentum, and context before suggesting levels.
Why You Need Both on Every Trade
A trade without a stop loss is gambling, and a trade without a take profit is hoping.
Together, they give structure.
Before entering any trade, you should know:
- Where you are wrong
- Where you are right
- How much you are willing to lose
- How much you are aiming to make
If you cannot answer these, you are not trading.
You are reacting.
Risk to Reward in Simple Terms
Risk to reward tells you if a trade is worth taking.
If you risk 1 dollar to make 3 dollars, that is good.
If you risk 3 dollars to make 1 dollar, that is not.
You do not need formulas to understand this, you just need discipline.
Ask Fere Pro:
“Is this trade worth the risk”
Using Fere AI to Plan SL and TP
This is where beginners get an edge.
Instead of guessing, you can ask Fere AI to help plan exits before you enter.
Try prompts like:
- “Suggest a stop loss and take profit for this token”
- “Help me set conservative exits for this trade”
- “Where would experienced traders place their stop loss here”
Learning this way builds confidence without burning capital.
Common Mistakes to Avoid
Here are a few mistakes that almost everyone makes as a beginner:
- Moving stop losses lower when price drops
- Cancelling take profits because of greed
- Using no exits at all
- Risking too much on a single trade
If you catch yourself doing these, pause and reflect.
Then, ask Fere AI for a second opinion before acting.
Discipline Is the Real Edge
Charts matter, narratives matter and timing matters.
But discipline matters more than all of them.
Stop loss and take profit are not about predicting the market.
They are about controlling yourself.
Before your next trade, ask Fere AI:
“Help me plan this trade properly”
That one habit alone puts you ahead of most people.
Final Thoughts
Trading is not about being right every time.
It is about staying in the game long enough to learn.
Protect your downside, lock in your upside.
And ask Fere AI before you enter any trade.
Try it today: