Fatal Misconceptions in Crypto: Not Setting Stop Losses is Like Betting Your Life on a Rebound
I have seen too many 'retail investors' get liquidated; in fact, it’s not the market’s fault, but a major issue with their trading habits.
99% of retail investors fall into a deadly psychological trap: they don’t sell when the price drops, hoping for a rebound; when the price drops further, they become even more reluctant to sell, opting instead to play dead.
If there’s no rebound today, they don’t sell.
Tomorrow, if there’s a two-point rebound, they think it’s not enough, so they don’t sell. The day after, if it drops three points, they’re even more reluctant to sell. Later on—hopes of breaking even are lost, losses deepen, and their account gets halved.
To sum it up: It’s not the crypto market that loses your money; it’s your unwillingness to admit mistakes.
Stop loss is the bottom line for traders.
Whether it’s me or traders who are doing relatively well in the market, we all share a consensus:
"If a trade goes wrong, cut it off, even if you just entered today, immediately set a stop loss."
Trading is not about praying, it’s not about luck, it’s about discipline.
Blindly averaging down is not a strategy; it’s a death wish.
Admitting mistakes when the price drops, setting stop losses, and reopening positions is a fundamental lesson for mature traders.
If you haven’t set your stop loss in advance, you’re not trading; you’re gambling with your life.
If you’re not doing value investing, don’t talk about 'averaging down'.
The logic of short-term market speculation is inherently unrelated to value.
Many people watch one or two candlestick tutorials and think they can 'catch the bottom', 'average down', or 'hold long', but then end up with a zero balance after a market cycle.
You need to be clear: your capital is not meant to gamble on rebounds; it’s meant to win the next round.
True traders don’t rely on getting rich quickly; they rely on surviving in the long run and growing through compound interest.
Before opening a position, think carefully—how much loss can I accept?
Every time you set a stop loss, remind yourself—I'm protecting myself, not admitting defeat.
If you often feel lost in the crypto space, don’t know what to buy, don’t know how to set stop losses, or whether to chase the price up or down—
Then stick with me, join the small circle, and together we’ll steadily build towards becoming long-term winners.
