In the tumultuous sea of the cryptocurrency market, 'stop-loss' has always been regarded as the golden rule of investment, but today we will break this traditional perception. A significant amount of data shows that 75% of investors struggle to grasp the scale of stop-loss, and I firmly believe that under specific strategies, stop-loss is not an essential option for investment.
In traditional views, stop-loss is a tool for controlling risk; however, in the cryptocurrency market, it hides many traps. Firstly, market leaders often set traps using stop-loss mechanisms. Observations show that 95% of stop-loss orders, once triggered, lead the price to revert to the original trend within 24 hours, making retail investors' stop-loss orders a source of liquidity for the market leaders. Secondly, frequent stop-loss actions severely affect investors' mentality, greatly increasing trading anxiety, causing a potential win rate of 60% to plummet to 20%, leading to a vicious cycle in investment decisions. Thirdly, from a mathematical perspective, a 50% loss requires a 100% gain to break even, while 90% of assets in the cryptocurrency market face the risk of going to zero within three years, diminishing the significance of stop-loss in a complex market environment.
How can we replace stop-loss orders for risk management? The core lies in position management and dynamic strategies. Adopting a 1% position opening strategy is like putting on sturdy armor for investment. For example, if you short $100, the price would need to rise tenfold to trigger a liquidation, while the probability of daily fluctuations in the cryptocurrency market exceeding 50% is only 0.3%, significantly reducing extreme risks. When the market experiences a 2-3% pullback, it often indicates an extremely overbought state, and at this time, a counter-position can actually improve the win rate.
In practical operations, dynamic take-profit and laddered position increases are key. In an upward trend, move the take-profit line up every time there is a 5% gain to lock in profits; during a downturn, a strategy like adding 1% to the position for every 5% drop in Bitcoin can gradually average down costs. Moreover, market sentiment is an important reference indicator. When the overall liquidation rate exceeds 80%, market panic reaches its peak, and taking a counter-position at this time can often seize excellent arbitrage opportunities, just like after the Israeli airstrike on June 13, 2025, decisively going long on Ethereum resulted in a 47% profit within 36 hours.
For market leaders, the hardest to harvest are those investors who respond rationally to market fluctuations with extremely small positions. They are not swayed by short-term price fluctuations and stop-loss traps; relying on their deep insights into the market and sound strategies, they move steadily in the cryptocurrency world. The path of investment is filled with risks and opportunities; discarding blind operations and mastering the rules of anti-fragile investment is the only way to remain invincible in the market.