1️⃣ Understanding stop-loss is the first step to breaking out of the retail cycle.
Your failure to stop-loss is not a technical issue; it's a psychological issue.
Reluctance: Thinking it can still rise back.
Wishful thinking: Hoping for a bullish candle to break even.
Strong attachment: Treating every trade as a judgment of right or wrong.
And the result?
Loss 20% on one trade, then trying to double on the next, ultimately leading to liquidation.
A true expert exits calmly at a 3% loss.
2️⃣ Loss does not equal failure; stop-loss is your 'trading cost'.
When you eat at a restaurant, you know you need to pay, right?
Trading coins is the same; stop-loss is the 'admission fee' you pay for learning and participating in the market.
The difference is:
Those who understand stop-loss pay 100U to learn once.
Those who do not stop-loss will lose all their capital in one go and never graduate.
One of the best decisions I made:
From the fifth year onward, I set hard stop-loss levels for every order, no exceptions.
When day trading, exit if down 3%.
For trend trades, exit if breaking below key moving averages, without hesitation.
3️⃣ True 'averaging down' happens when prices rise, not when they fall.
The worst liquidation I ever faced was caused by continuous averaging down:
Ethereum dropped from 2400 to 2200, I added to my position.
When it dropped to 2000, I added to my position again.
When it fell to 1800, I didn't believe it, went all in…
Result: It plunged to 1700, leading to liquidation, wiping out the entire fund.
I later understood:
Increasing position on loss = Accelerated destruction.
Increasing position on profit = Amplifying profit.
Only coins that rise are worth averaging up, coins that drop can only be cut, not added to.
4️⃣ The three stop-loss methods I commonly use (practical suggestions):
✅ Technical stop-loss: Exit immediately when the price breaks below structural support (e.g., below the lower Bollinger Band or moving average on the 4H chart).
✅ Proportional stop-loss: Set a loss per trade not exceeding 3%-5% of account funds to avoid emotionally driven trading.
✅ Time stop-loss: If the trend does not meet expectations within 12/24 hours after entry, decisively stop-loss without lingering.
💡 In one sentence, my stop-loss system is summarized as:
Entry relies on logic, stop-loss relies on discipline.
It's not because you’re not smart enough; it's because you’re not decisive enough.
The market does not reward those who 'hold on stubbornly'; it only favors those who can 'run fast'.
📌 Losing less is the highest level of risk control ability.
You may not be able to win every time,
but you can definitely do this:
A 3% loss on one trade, a 10% gain on the next, and you’re still alive.
Losing less and living longer allows you to catch the real doubling market.
All successful people are masters of risk control behind the scenes.
I now keep each loss within '1% of the account'.
You may think it's too conservative, but this is exactly the confidence I gained after 36 liquidations.
