Why do 90% of contract players end up losing everything? Because they simply don’t know how to stop loss!
Just today, a fan opened a position without a stop loss and got liquidated. I’ll take this opportunity to teach everyone.
I have seen too many people go from 100,000 to 1,000,000, only to return to zero because of one holding.
Today, I will reveal all the stop loss secrets I’ve acquired from multiple liquidations!
In March 2023, BTC surged from 28,000 to 31,000. I shorted with 5x leverage, thinking: “I’ll close on a pullback.” As a result, it continued to rise to 35,000, and I got liquidated!
In January 2024, SOL broke 120. I chased the long with 10x leverage, thinking, “I’ll exit after breaking the previous high.” The price spiked down to 98, and I went to zero!
The painful lesson:
Holding once may allow survival, but holding ten times will surely lead to death once
All liquidations start with 'just one more wait'
Two, Stop Loss Techniques (Life-saving Version)
1. 3-Second Stop Loss Rule (Essential for Beginners)
Set a stop loss within 4 seconds after opening a position
Stop loss range: Reciprocal of 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 Traders)
Floating Profit 5% - Move Stop Loss to Break-even
Floating Profit 10% - Move Stop Loss to 5% Profit
Floating Profit 20% - Move Stop Loss to 15% Profit
(Just like saving in a game, the profit portion must never be given back)
3. Emotional Stop Loss Method (Psychological Control)
Three consecutive losses - Close the software and take a break for 1 hour
Euphoria after profits - Withdraw 50% immediately
(Decisions made when euphoric are 99% wrong)
Three, Practical Case: How to Use Stop Loss to Capture the Entire Market Movement
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 (Lock in 3% profit)
Finally surged to 4100, capturing the full increase while only bearing 2% risk
Four, Stop Loss Advice
Stop loss is not giving up, it's a tactical retreat
All big players have faced liquidation; the difference is that they stop loss quickly
The crypto space is never short of opportunities; what’s lacking is the capital to survive until the next opportunity!
I am Xiao O, a professional analyst and instructor, a mentor and friend on your investment journey! As an analyst, the basic role is to help everyone make money. I solve confusion and trapped positions, speaking with strength. When you are lost and don’t know what to do, follow Xiao O, who will guide you.
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