After liquidation, I finally understood: those who don't cut losses are always just the "oxygen suppliers" for the exchange.
To say something heartbreaking -
90% of those who trade contracts lose everything, not because of direction, but because they don't know how to cut losses.
Today, a brother of mine randomly opened a position without setting a stop-loss and got liquidated.
I took this opportunity to share the stop-loss secrets I gained from three liquidations.
1. Liquidation is not an accident; it's the consequence of your "wait a little longer" mindset.
March 2023
BTC surged from 26000 to 32000.
I shorted with 5x leverage, thinking:
"I'll close it if there's a pullback."
Result? It rose to 35000 and got liquidated.
January 2024
SOL breaks 120, I 10x chase long:
"If it breaks the previous high, then exit."
Resulted in a spike to 90, account evaporated.
Later, I finally understood:
Holding once might allow survival, but holding ten times will surely lead to death.
Every liquidation starts from that phrase
"Just wait a bit longer" is where it all starts.
2. Stop-loss techniques (life-saving essential version)
1.3-second stop-loss method (a must-learn for beginners)
You must set the stop-loss within 4 seconds after opening a position.
Stop-loss magnitude = Inverse of leverage
For example: 20x leverage → 5% stop-loss
10,000 USDT with 20x leverage → Maximum loss of only 500 USDT.
No stop-loss? Then opening a position is just gambling.
2. Dynamic stop-loss (experts rely on it to capture trends)
Floating profit 10% → Stop-loss raised to cost price
Floating profit 20% → Stop-loss raised to 5% profit
Floating profit 30%+ → Stop-loss raised to 15% profit
Like saving a game, lock in profits layer by layer.
Never give the money you've earned back to the market.
3. Emotional stop-loss (life-saving skill)
Three consecutive losses → Close software for 1 hour
Impulse after big profits → Immediately reduce position by 50%
Remember:
When your mind is heated, 99% of the trades are losses.
3. Real case: How stop-loss helped me capture the entire trend
May 2024 ETH
3600 going long, 20x leverage
Stop-loss only gives 2.2% (3520)
ETH rose to 3700 → Stop-loss raised to 3720 (locking in 30%)
Then it surged all the way to 4100
This segment was completely captured.
Maximum risk? Just a little over 2%.
This is the power of stop-loss.
4. Stop-loss is not cowardice; it's the only way for you to survive.
Do you think experts rely on direction?
No, they rely on exit mechanisms.
All the big players have experienced liquidation.
The difference is they
Once liquidated, it hurts enough to change the rules.
The crypto world has never lacked opportunities,
What it lacks is—
When the next opportunity comes, you still have capital in play.
Remember this phrase:
You can sit at the poker table because you still have chips.
Without capital, you aren't even an audience.
If you're still rushing in, holding positions, and not setting stop-loss...
You're not technically poor; your timing is completely wrong.
If you wish, I can give you my entire risk control logic, so you can at least achieve—
No liquidation, no serious injury, no zeroing out.
