After wandering around the square, I saw many people placing long orders without setting stop losses, betting their lives on a rebound.
I have seen too many retail investors face liquidation, and it's not actually the market's fault; it's a significant problem with their trading habits.
99% of retail investors fall into a deadly psychological trap: they don't sell when the price drops, fantasizing about a rebound; when it drops further, they are even less willing to sell, simply playing dead.
Today, there was no rebound, so they don’t sell.
Tomorrow, there’s a two-point rebound, but they think it’s not enough, so they don’t sell. The day after, it drops three points, and they’re even less willing to sell, and then later—no hope of breaking even, losses deepen, and the account is directly halved.
In conclusion: it’s not the cryptocurrency market that loses your money; it’s you not admitting your mistakes.
Stop loss is the bottom line for traders.
Whether it's me or traders in the market who are doing relatively well, we have a consensus:
"If the trade is wrong, cut it off, even if you've just entered the market today, set a stop loss immediately."
Trading is not about praying or relying on luck; it’s about discipline.
Blindly averaging down is not a strategy; it’s a death sentence.
Admitting mistakes when the price drops, setting stop losses, and reopening positions is a must-learn lesson for mature traders.
If you haven't set your stop loss point in advance, then you’re not really trading; you’re gambling with your life.
If it’s not value investment, then don’t talk about "buying more as it drops."
The logic of short-term market speculation is inherently unrelated to value.
Many people watch one or two candlestick tutorials and think they can "catch the bottom," "average down," or "hold long-term," and end up clearing their account after a wave of price movement.
You must be clear: your principal is not for betting on rebounds; it’s to win the next round.
Real traders don't rely on becoming rich in one shot; they survive long-term and grow through continuous compounding.
Before every opening position, think clearly—how much loss can I accept?
At every stop loss, remind yourself—I'm protecting myself, not admitting defeat.
I hope those who read this article can gain some insights.
