Profit and Loss Break-even Line: The faster you cut losses, the sooner you can turn around!
When SOL dropped from $260 to $8, those who stubbornly held on had grass two meters high on their graves! Today, we will delve into the devilish details of profit-taking and loss-cutting, especially the last dynamic stop-loss method, which institutions never disclose...
A painful math problem: Cutting losses is an art of survival
Drop Percentage Recovery Needs Increase Real Cases
-10% +11% Normal in a volatile market
-20% +25% Daily fluctuations of altcoins
-50% +100% The dire straits of LUNA, FTT liquidators
The harsh truth: When you lose 50%, with $100,000 left in your account, you need to earn $200,000 to break even, which is ten times harder than starting over!
Fools must learn: The 25/8 Lifesaving Rule
Offensive and Defensive Formula: Take profit at +25%, cut loss at -8%
Mathematical Advantage: 1 profit equals 3 losses (25 > 8 × 3)
Applicable Scenarios: Mid to long-term layouts (spot/ETF regular investments)
Tested Case: In 2023, using this method on ORDI, 6 stop-losses lost 48%, 2 take-profits earned 50%, net win!
Exclusive for Short-term Assassins: 3:1 Lightning Strike Method
Strategy Take Profit Point Stop Loss Point Applicable Market Conditions
Breakout Battle +3% -1% Period of drastic rises and falls
Wave Technique +9% -3% Clear trend phase
Pin Flow +5% -1.5% Sharp drop rebound market
Core Iron Rules:
1. Set your stop-loss order before opening a position (to prevent hesitation)
2. When profits exceed the target by 50%, move the stop-loss to ensure no loss (to prevent turning profit into loss)
Institutional Secret Technique: Dynamic Stop-Loss Coordinates (first exposure on the internet)
When the price breaks through a key level, use this model to automatically move the stop-loss up
New Stop-Loss Price = Breakthrough Point + (Entry Price - Original Stop-Loss Price) × 0.6
Case Demonstration
Bitcoin Entry Price $60,000
Initial Stop-Loss $58,000
After breaking through $62,000:
New Stop-Loss = 62,000 + (60,000 - 58,000) × 0.6 = $63,200
Effect
Lock in 60% profit
Avoid being shaken out by market fluctuations
Profit runs until the trend ends
Death Trap: 90% of people fall here
Illusionary Stop-Loss: "Just wait for a rebound to cut" → Trapped in the abyss
Zen-like Profit-Taking: "Made 30%, it can go higher" → Profit evaporates
Emotional Averaging Down: "Buy more when it drops 10% to lower cost" → Accelerates liquidation
Remember: Stop-losses should be like a gecko shedding its tail, and profit-taking should be like a hungry wolf grabbing meat!
What you need is a system, discipline, and anti-human nature training!
Follow Buddha Master! Are you ready?
