Two traders open the same Bitcoin long position at the same price on the same night. Then they go to sleep. At 3 AM, bad news hits, a major exchange announces a regulatory investigation. Bitcoin drops 12 percent in 40 minutes.
Trader A had set a stop-market order at 5 percent below their entry. When Bitcoin hit that level, the stop triggered, turned into a market order, and sold immediately. She lost 5.3 percent after slippage. Painful, but her account is intact. She wakes up, checks her phone, sees the notification, and starts planning her next trade.…