đ« Stop Loss Eating Up Your Portfolioâ Hereâs Why I Donât Use It in Crypto â And Maybe You Shouldnât Eitherđ±đ„
If youâve been in crypto for a while, youâve probably heard the golden rule:
âAlways set a stop loss.â
But after 5+ years of real-world crypto trading, Iâve learned that this advice doesnât always hold up â especially in a market as wild and manipulated as crypto.
â Why I Avoid Stop Losses
Crypto is fast, volatile, and often targeted by whales and exchanges. Hereâs the usual pattern:
1ïžâŁ You set a stop loss
2ïžâŁ A minor dip hits your stop
3ïžâŁ Price bounces back â without you in the trade
Why does this keep happening?
Because big players know where retail traders set stops. When those levels become stacked with orders, they trigger them, grab liquidity, and let the market recover.
You lose, they win.
đ So What Do I Do Instead?
â Focus on averaging down and using low leverage.
This shift in strategy has protected me from emotional exits and avoidable losses.
đĄ My Real-World Crypto Strategy:
đč Trade only top 20 coins â more stable, less likely to crash
đč Use only 20% of your capital per trade
đč If the price drops 20â30%, add another 20%
đč Take profits when youâre up 50% or more â donât get greedy
đč If using futures, never exceed 3x leverage
đ§ Mindset That Builds Survivors, Not Losers:
â Donât chase green candles â wait for your setup
â Keep 30% in stablecoins for unexpected dips
â Log your trades â learn from wins & mistakes
â Ditch luck â build logic, patience, and discipline
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