A truth I learned after getting liquidated: Contract traders who don't know how to stop losses are destined to be scammers' cash machines!
Why do 90% of contract traders ultimately lose everything? Because they don't know how to stop losses!
Just today, a follower opened a position without a stop loss and got liquidated, so I'd like to take this opportunity to teach you a lesson.
I've seen countless people build from 100,000 to 1,000,000, only to lose everything because of a single, forced trade.
Today, I'm sharing all the stop-loss secrets I've learned from my many liquidations!
In March 2023, BTC skyrocketed from 28,000 to 31,000. I shorted it with 5x leverage, thinking, "I'll close the gap on a pullback." It went all the way up to 35,000, and I got liquidated!
In January 2024, SOL broke through 120. I went long with 10x leverage, thinking, "I'll sell once it breaks the previous high." It plummeted to 98, and it went straight to zero!
Lessons Learned Through Hard Times:
Holding a trade once might save you, but holding it ten times will guarantee you a fatality.
All margin calls begin with "wait a little longer."
II. Stop-Loss Techniques (Life-Saving Version)
1. The 3-Second Stop-Loss Rule (A Must-Learn for Newbies)
Set a stop-loss within 4 seconds of placing a trade.
Stop-Loss Range: The inverse of the leverage ratio (20x leverage, 5% stop-loss).
Example: 10,000 units open at 20x, set a stop-loss at 500 units at 5%.
2. Dynamic Stop-Loss Technique (Advanced Essential)
Floating Profit 5% - Move the stop-loss up to the cost price.
Floating Profit 10% - Move the stop-loss up to 5% of the profit.
Floating Profit 20% - Move the stop-loss up to 15% of the profit.
(Just like saving a game, never give back your profits.)
3. Emotional Stop-Loss Technique (Psychological Control)
Three consecutive losses - Close the app and go weightlifting for an hour.
Excited after a profit - Immediately withdraw 50% of your funds.
(Decisions made when you're high on energy... 99% of the time, this is wrong.
III. Practical Example: How to Use Stop-Loss to Capture the Entire Market
ETH Operation in May 2024:
Open long at 3600, 20x leverage, initial stop-loss at 3520 (2.2%)
Rising to 3700, move stop-loss up to 3720 (locking in 3% profit)
Finally, it exploded to 4100, capturing the entire gain while only taking a 2% risk
