#Xrp🔥🔥 Why I Don't Use Stop-Losses — And Why You Should Rethink Them Too
Stop-losses are a common risk management tool — but in my experience, they often do more harm than good.
Here's why I don't use them:
Too often I've seen my stop-loss trigger... only to see the price turn in my favor *right after* I exited the trade. Not only is this frustrating — it's expensive. Instead of relying on a stop-loss, I use a different approach:
🔹 **I only set a take-profit.**
🔹 **I trade small amounts.**
🔹 **And I focus on staying calm, rather than chasing excitement.**
Let me give you an example.
Suppose I have \$1000. I open a short position of only \$100. Even if the market goes against me, it would require a 10-fold increase in price to liquidate that \$100. A small drop of 2–3% is quite manageable — especially if the market is already overbought.
So why use a stop-loss that might take me out of the trade *too early*?
👉 Trading small amounts and patience helps reduce risk *without* relying on automatic exits.