My experience with Sell Stop orders: it's not as simple as it seems.

Having traded cryptocurrencies for several years, I constantly encounter newcomers who get confused about the types of orders. It particularly annoys me when people start trading without understanding the basic tools! And the Sell Stop order is one of those that raises the most questions.

What the hell is this Sell Stop? I'll explain in my own words, without unnecessary fluff.

Imagine: you have bitcoin purchased for 25,000 bucks. You are afraid of a downturn and want to limit the loss to five thousand. What to do? You set a Sell Stop with an activation price of 20,000 dollars. If the bitcoin drops to this mark - the trading engine will automatically throw your coin onto the market at the current price.

It is important to understand that no one guarantees you a sale exactly at 20,000! In a volatile market, the price can drop even lower, especially when everyone is panicking. I personally lost quite a bit of money when the market crashed sharply.

Many confuse Sell Stop with a regular stop-loss, but they are not exactly the same. A stop-loss is a broader concept. A Sell Stop is a specific type of stop-loss that converts into a market order.

Sell Stop Limit is a completely different story. Here you set two prices: stop ( when it activates ) and limit ( at what price to sell ). For example, a stop at 1000 bucks for Ethereum and a limit at 900. If Ethereum falls to 1000, the system places a limit order at 900. But there is no guarantee of execution! If the price skips by - you will be left with a loss.

There is also a trailing stop - my favorite tool. It moves with the price if it goes up. Let's say you have Bitcoin at 25k with a trailing stop of 5%. If the price rises to 30k and then falls by 5% to 28.5k - the order will trigger. It's very convenient for locking in profits!

Why do I prefer Sell Stop? Because it has a higher chance of the order being executed somehow. Unlike limit orders, which can hang forever.

Don't fall for the beautiful promises of various "gurus". Last month, I got burned on such an order - the market collapsed so quickly that my order was filled at 15% lower than planned. Now, I approach strategy selection more carefully and don't fully trust my money to automation.

Remember, each type of order has its pitfalls, and no one is immune to slippage during sharp market movements!