Is there anyone like me, tortured by stop-losses in crypto trading to the point of questioning life? As soon as the stop-loss triggers, it reverses, and holding onto positions leads to deep losses, while trying to reverse positions results in being harvested back and forth, all while focusing on precisely stepping into traps? Even at midnight, staring at the K-line cursing: "Is the main force monitoring my trades?" Today, I will share my secret stop-loss strategies to help you break out of this deadlock. Stop blaming stop-losses for being "targeted" at you; the problem lies in your choice of stop-loss approach!
First, clarify the core: In the crypto market, stop-losses logically fall into two categories: one is "directional stop-losses," and the other is "small stop-losses." Using them in the wrong context makes all efforts futile.
Taking the classic example of ETH's consolidation breakout: when the K-line breaks through a clear oscillation range, you either enter directly on the breakout or wait for a pullback to get in. However, these two entry methods have vastly different stop-loss settings. If entering instantly on the breakout, the directional stop-loss should be set below the bottom of the entire consolidation range (if it breaks here, the breakout is false, and the trend is completely done); while the small stop-loss can be set at the midpoint of the range — don't think this position is too close; this is meant to be a 'trial and error order'. If entering on a pullback, the directional stop-loss still anchors at the range's bottom (the signal for trend termination remains unchanged), but the small stop-loss should be changed to the lowest point of the K-line you entered on (if it breaks here, it indicates the pullback is not an opportunity but a trap).
Why divide it this way? The essence of directional stop-loss is 'trend judge' — once triggered, it basically announces a complete reversal of the current trend. For example, in an already formed upward structure, if the bottom of the consolidation range can't be held, what is there to discuss about a rise? If this stop-loss is hit, you should be glad you ran early rather than regret it. But if a small stop-loss is hit, really, there's no need to get emotional! The main force in the crypto market loves to play 'shakeout': after a breakout, it first smashes down, hitting the small retail stop-loss orders at the midpoint of the range, forcing bulls to cut losses, then attracting bears to short, and then reversing it to rise and eat it all — I call this 'the main force's wool-pulling operation'. Your small stop-loss getting hit just happened to coincide with the main force's washing rhythm.
My own practical principle is: small stop-losses are used for 'trial and error', allowing myself to try three times. It's normal to get stopped out in the first two tries; if the third time still doesn't work, just give up on that trend (indicating it’s either a false trend or the main force is washing the plate too hard, no need to fight back). But as long as one trial is successful, the losses from the first two can be fully recovered, and you can also ride the main upward wave of the trend. This is the high risk-reward logic of small stop-losses — if you don’t let go of the child, you can't catch the wolf; the 'wolf' in crypto trading is the profit from the big trend.
Here, I must emphasize: I have been trading crypto for eight years and have seen too many traders stubbornly cling to their stop-loss levels, yet they can't even grasp the big trend — trading long in a downtrend, no matter how perfect the stop-loss is, won't save you; it's like pedaling hard against the wind — it's exhausting! The stop-loss is just your 'life-saving talisman', helping you lose less, but it can never increase your win rate; what truly determines whether you make money is whether you can see the trend direction clearly.
Finally, I want to tell everyone: the dumbest thing in trading is treating the stop-loss as a scapegoat. When you are tortured by stop-losses to the point of collapse, don’t blame the market first; look back and see if you are trading against the trend. If your trading is still being repeatedly tortured by stop-losses, perhaps you should start adjusting from 'distinguishing the trend'.
Follow 猬哥, I will break down the practical techniques for judging trends in the crypto market, from consolidation breakouts to trend continuations, teaching you step by step how to avoid the main force's 'stop-loss traps' — if you have any strange experiences of stop-loss missteps, let’s chat in the comments, and I’ll help you figure out where the problem lies!
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Is the stop-loss in crypto trading always being 'precisely hunted'? An eight-year veteran analyst teaches you how to break out of this deadlock.
Is there anyone like me who doubts life after being tortured by stop-losses in crypto trading? Once the stop-loss is cut, the market reverses, holding positions leads to deep entrapment, and turning back results in being harvested again and again, all while stepping precisely into the pitfalls? Even at night, staring at the K-line and cursing: 'Did the main force install monitoring on my trades?' Today, 猬哥 is going to pull out the deep-seated stop-loss mindset to help you break out of this deadlock — stop blaming the stop-loss for targeting you; the problem lies in not choosing the right way to set your stop-loss!
First clarify the core: the stop-loss in the crypto market logically divides into two categories, one is 'directional stop-loss' and the other is 'small stop-loss'. Using the wrong scenario makes all efforts in vain.
Taking the classic example of ETH's consolidation breakout: when the K-line breaks through a clear oscillation range, you either enter directly on the breakout or wait for a pullback to get in. However, these two entry methods have vastly different stop-loss settings. If entering instantly on the breakout, the directional stop-loss should be set below the bottom of the entire consolidation range (if it breaks here, the breakout is false, and the trend is completely done); while the small stop-loss can be set at the midpoint of the range — don't think this position is too close; this is meant to be a 'trial and error order'. If entering on a pullback, the directional stop-loss still anchors at the range's bottom (the signal for trend termination remains unchanged), but the small stop-loss should be changed to the lowest point of the K-line you entered on (if it breaks here, it indicates the pullback is not an opportunity but a trap).
Why divide it this way? The essence of directional stop-loss is 'trend judge' — once triggered, it basically announces a complete reversal of the current trend. For example, in an already formed upward structure, if the bottom of the consolidation range can't be held, what is there to discuss about a rise? If this stop-loss is hit, you should be glad you ran early rather than regret it. But if a small stop-loss is hit, really, there's no need to get emotional! The main force in the crypto market loves to play 'shakeout': after a breakout, it first smashes down, hitting the small retail stop-loss orders at the midpoint of the range, forcing bulls to cut losses, then attracting bears to short, and then reversing it to rise and eat it all — I call this 'the main force's wool-pulling operation'. Your small stop-loss getting hit just happened to coincide with the main force's washing rhythm.
My own practical principle is: small stop-losses are used for 'trial and error', allowing myself to try three times. It's normal to get stopped out in the first two tries; if the third time still doesn't work, just give up on that trend (indicating it’s either a false trend or the main force is washing the plate too hard, no need to fight back). But as long as one trial is successful, the losses from the first two can be fully recovered, and you can also ride the main upward wave of the trend. This is the high risk-reward logic of small stop-losses — if you don’t let go of the child, you can't catch the wolf; the 'wolf' in crypto trading is the profit from the big trend.
Here, I must emphasize: I have been trading crypto for eight years and have seen too many traders stubbornly cling to their stop-loss levels, yet they can't even grasp the big trend. Trading long in a downtrend, no matter how perfect the stop-loss is, won't save you; it's like pedaling hard against the wind — it's exhausting! The stop-loss is just your 'life-saving talisman', helping you lose less, but it can never increase your win rate; what truly determines whether you make money is whether you can see the trend direction clearly.
Finally, I want to tell everyone: the dumbest thing in trading is treating the stop-loss as a scapegoat. When you are tortured by stop-losses to the point of collapse, don’t blame the market first; look back and see if you are trading against the trend. If your trading is still being repeatedly tortured by stop-losses, perhaps you should start adjusting from 'distinguishing the trend'.
Follow 猬哥, I will break down the practical techniques for judging trends in the crypto market, from consolidation breakouts to trend continuations, teaching you step by step how to avoid the main force's 'stop-loss traps' — if you have any strange experiences of stop-loss missteps, let’s chat in the comments, and I’ll help you figure out where the problem lies!
