When I first encountered contracts, I was naively ridiculous.
I treated "fixed 3% stop loss" like a bible, believing in the hype from forums and friends sharing screenshots—resulting in nearly being driven out of the market by this thing.
What left the deepest impression was that time when Ethereum was wildly volatile:
In the morning, it surged 5%, then plunged 8% at noon, and came back up again in the evening.
The market bounced around like it was on drugs, and where was my 3% stop loss?
It felt like a joke specifically designed for the market.
I got swept out in the morning, then took off in the afternoon;
Swept out in the afternoon, then took off again in the evening;
Three stop losses in one day, and the fees added up to be more painful than the losses.
When I checked my account, the principal was down by one-fifth, and I was completely stunned.
At that moment, I finally understood:
A stop loss is not just a number; it is a technique.
Using a fixed percentage to fight against various market fluctuations is like running a marathon in flip-flops—if you make it to the finish line, consider it a miracle.
Later, I calmed down and studied volatility, especially ATR.
That is the true measure of a stop loss:
When the market breathes fast, you loosen up;
When the market is quiet, you tighten up.
A stop loss must follow the market, rather than being determined arbitrarily.
After I started using dynamic stop losses, the world instantly became clearer:
With high volatility in ETH, I used ATR×1.8;
With SOL moving orderly, I used ATR×1.2.
No longer swept by wash trading, I could run at the first sign of a breakout.
While others' mentality exploded due to false spikes, I began to capture complete trends.
That was when I truly understood—
A stop loss is not a shield against losses; it is a profit valve.
Too close gets swept by volatility, too far gets swallowed by reversals.
A true expert breathes with the market.
I could climb out of that pit, not by luck, but by being willing to admit my past foolishness, willing to change my approach, and willing to learn.
If you are also being tortured by stop losses and losing your composure, don't doubt yourself.
The problem may not be you, but your methods are too rigid.
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