š« Stop Loss Eating Up Your Portfolioā Hereās Why I Donāt Use It in Crypto ā And Maybe You Shouldnāt Eitherš±š„
If youāve been in crypto for a while, youāve probably heard the golden rule:
āAlways set a stop loss.ā
But after 5+ years of real-world crypto trading, Iāve learned that this advice doesnāt always hold up ā especially in a market as wild and manipulated as crypto.
ā Why I Avoid Stop Losses
Crypto is fast, volatile, and often targeted by whales and exchanges. Hereās the usual pattern:
1ļøā£ You set a stop loss
2ļøā£ A minor dip hits your stop
3ļøā£ Price bounces back ā without you in the trade
Why does this keep happening?
Because big players know where retail traders set stops. When those levels become stacked with orders, they trigger them, grab liquidity, and let the market recover.
You lose, they win.
š So What Do I Do Instead?
ā Focus on averaging down and using low leverage.
This shift in strategy has protected me from emotional exits and avoidable losses.
š” My Real-World Crypto Strategy:
š¹ Trade only top 20 coins ā more stable, less likely to crash
š¹ Use only 20% of your capital per trade
š¹ If the price drops 20ā30%, add another 20%
š¹ Take profits when youāre up 50% or more ā donāt get greedy
š¹ If using futures, never exceed 3x leverage
š§ Mindset That Builds Survivors, Not Losers:
ā Donāt chase green candles ā wait for your setup
ā Keep 30% in stablecoins for unexpected dips
ā Log your trades ā learn from wins & mistakes
ā Ditch luck ā build logic, patience, and discipline
š