1. The core logic of stop loss: The market is wrong, the discipline is right

  1. The survival bottom line of risk control
    A 30% drop in the cryptocurrency market in a single day is not uncommon (e.g., the LUNA crash in 2022); under 10x leverage, a reverse fluctuation of 10% will lead to liquidation. Stop loss is not about predicting the market, but using small losses to gain 'qualification to stay in the market.' For example, when BTC drops from 100,000 to 90,000, a 5% stop loss means a loss of 5,000 USD; if the position is held until 80,000, 10x leverage will lead to total loss.

  2. The firewall of emotional management
    Holding a position is essentially using a lucky mentality to fight against market rules. When the loss on a position exceeds 20%, traders are prone to fall into the 'sunk cost trap' and may even add margin, ultimately leading to liquidation during a waterfall market. Data shows that users who hold positions incur an average loss 4.7 times greater than stop loss users, with 90% of liquidations stemming from holding positions.

  3. The optimal solution to probability games
    Even if the price rebounds after a stop loss (e.g., BTC rebounds to 105,000 after stopping at 103,000), it is still a correct decision from a probability perspective. Assuming 10 trades, 6 stop losses followed by drops and 4 rebounds, strict stop loss users can profit through '6 small losses + 4 big gains,' while holders will be eliminated in a crash.

2. The deadly trap of holding positions: Luck is right, logic is wrong

  1. The death spiral of leveraged markets
    Holding contracts can lead to a decrease in margin rates, triggering forced liquidation when reaching the strong liquidation line. In June 2025 during the conflict in Yichong, holding ETH from 2,800 to 2,450 USD with 10x leverage not only wiped out the principal but also incurred an additional loss of 15% due to forced liquidation.

  2. The implicit loss of opportunity cost
    Holding positions ties up funds, causing missed new opportunities. For example, while holding BTC at 100,000, the L2 sector ARB might surge by 50%, but being tied up results in missing the chance to invest. Data shows that users who hold positions have an annualized return that is 63% lower than that of stop loss users.

  3. The collapse of trust in trading systems
    A single profitable hold (e.g., BTC rebounds from 90,000 to 100,000) reinforces incorrect perceptions, leading to frequent holding positions. This 'survivorship bias' is the beginning of system collapse, ultimately resulting in devastating blows during black swan events (e.g., the FTX disaster).

3. Guidelines for strict execution: Establish anti-human nature discipline

  1. Mechanical stop loss method: Exit immediately when a single loss exceeds 5% of the account, without looking at the market or hesitating;

  2. Technical stop loss method: Automatically trigger a stop loss when breaking key support levels (e.g., BTC 103,000, ETH 2,480), using conditional orders instead of manual judgment;

  3. Emotional stop loss method: When holding a position incurs anxiety, close the position immediately regardless of profit or loss; when emotions are out of control, decision-making accuracy drops below 20%.


The essence of trading is a probability game; stop loss is used to avoid uncertain risks by accepting certain small losses. Remember: surviving in the cryptocurrency market is more important than making quick money; strict stop loss users may incur temporary losses, but holders will ultimately be eliminated by the market.#加密市场回调 #交易训练