The truth learned only after a liquidation: contract players who do not set stop-losses are destined to be the cash cows of the market manipulators!
Why do 90% of contract players end up losing everything? Because they simply do not set stop-losses!
Just today, a fan opened a position and didn’t set a stop-loss, leading to a liquidation. I’ll take this opportunity to give everyone a lesson.
I have seen too many people turn 100,000 into 1,000,000, only to end up at zero due to a single bad position.
Today, I will share all the stop-loss secrets that I learned from multiple liquidations!
In March 2023, BTC surged from 28,000 to 31,000, I shorted with 5x leverage, thinking: 'I will close if it retraces.' Instead, it soared to 35,000, leading to liquidation!
In January 2024, SOL broke through 120, I chased with 10x leverage, thinking 'I will exit if it breaks the previous high.' As a result, it spiked to 98, and I was wiped out!
Bloody lessons:
Holding a position once might work, but holding it ten times will definitely lead to death.
All liquidations start from 'just wait a bit longer.'
2. Stop-Loss Techniques (Life-Saving Version)
1. 3-Second Stop-Loss Rule (A must-learn for beginners)
You must set a stop-loss within 4 seconds after opening a position.
Stop-loss range: Inverse of leverage (20x leverage 👉 5% stop-loss)
Example: 10,000 USDT opened at 20x, set stop-loss at 500 USDT 5%
2. Dynamic Stop-Loss Technique (Essential for Intermediate Traders)
Floating profit of 5% — Move stop-loss to break-even
Floating profit of 10% — Move stop-loss to 5% profit
Floating profit of 20% — Move stop-loss to 15% profit
(Like saving the game, you must never give back the profit part)
3. Emotional Stop-Loss Method (Psychological Control)
Three consecutive losses — Close the software and go work out for 1 hour
After making a profit — Immediately withdraw 50%
(Decisions made when overly excited are 99% likely to be wrong)
3. Practical Case: How to Use Stop-Loss to Capture an Entire Trend
May 2024 ETH operation:
Open long at 3600, 20x leverage, initial stop-loss at 3520 (2.2%)
Rises to 3700, stop-loss moves to 3720 (lock in 3% profit)
Ultimately surges to 4100, capturing the full increase while only taking on 2% risk.
4. Stop-Loss Advice
Stop-loss is not admitting defeat; it's a tactical retreat.
All big players have experienced liquidations; the difference is that they set stop-losses quickly.
The crypto market is never short of opportunities; what’s lacking is the capital to survive until the next opportunity!!
