The truth learned only after liquidation: Contract players who do not set stop-losses are destined to become cash machines for the market makers!
Why do 90% of contract players end up losing everything? Because they do not set stop-losses at all!
Just today, a friend in crypto opened a position without setting a stop-loss and got liquidated, so I seized the opportunity to give everyone a lesson.
I've seen too many people go from 100,000 to 1,000,000, only to lose it all due to one holding position.
Today, I will share the stop-loss secrets I have learned from being liquidated multiple times!
In March 2023, BTC surged from 26,000 to 32,000. I shorted with 5x leverage, thinking, "I'll close if it retraces." But it rose all the way to 35,000, and I got liquidated!
In January 2024, SOL broke 120, and I chased it long with 10x leverage, thinking, "I'll exit if it breaks the previous high." It then spiked to 90, and I went to zero!
Lessons learned:
Holding a position once may allow survival, but holding it ten times will definitely lead to death.
All liquidations start with the mindset of "just wait a little longer."
II. Stop-Loss Techniques (Survival Version)
1. 3-Second Stop-Loss Rule (Must-learn for beginners)
A stop-loss must be set within 4 seconds after opening a position.
Stop-loss range: The reciprocal of the leverage (20x leverage → 5% stop-loss)
Example: Open 10,000 USDT with 20x leverage, set stop-loss at 500 USDT (5%)
2. Dynamic Stop-Loss Technique (Essential for advanced users)
5% floating profit → Move stop-loss to break-even
10% floating profit → Move stop-loss to 5% profit
20% floating profit → Move stop-loss to 15% profit
(Just like saving in a video game, never let go of your profits!)
3. Emotional Stop-Loss Method (Psychological control)
Three consecutive losses → Close the software and go exercise for 1 hour.
Feel euphoric after a profit → Immediately withdraw 50%.
(Decisions made in a euphoric state are 99% likely to be wrong.)
III. Practical Case: How to use stop-losses to capture the entire market segment
May 2024 ETH operation:
Open long at 3600, 20x leverage, initial stop-loss at 3520 (2.2%)
Price rises to 3700, move stop-loss to 3720 (locking in 3% profit)
It ultimately surged to 4100, capturing the entire rise while only bearing 2% risk.
IV. Stop-Loss is Advice
Stop-loss is not giving up; it is a tactical retreat.
All big players have been liquidated; the difference is that they set stop-losses quickly.
The crypto market is always full of opportunities; what is lacking is the capital that allows you to survive until the next opportunity! The reason you can sit at the poker table is that your capital is still intact; without capital, you can only watch from the sidelines.
