Blood and tears lesson! 90% of liquidations could have been avoided, just because of this one step
How many people were buried in that wave of crash just now? More than 370 million long positions evaporated into thin air, those brothers who fell before dawn didn’t lose to the market, they lost to the psychology of luck.
1. Stop-loss is not cutting losses, it's a seatbelt
How many people see stop-loss as a loss? That's a huge mistake. Stop-loss is the mandatory seatbelt for your account. Would you drive without a seatbelt? On this high-speed road of cryptocurrency where you can suddenly brake or crash, not using a stop-loss is like running naked.
2. Why do you always not set a stop-loss?
"Wait a little longer, it might rebound" - the result is waiting for a halving
"If I set it, I will get stopped out, not setting it might allow me to break even" - this is the most poisonous illusion
"I am a long-term investor, I don’t care about short-term fluctuations" - and then got trapped for three years
3. Three life-saving stop-loss settings
Technical stop-loss: set outside the key support/resistance level by 5-10%
Amount stop-loss: single loss not exceeding 2-5% of the principal
Time stop-loss: if it doesn't rise within 24 hours after buying, exit
Don’t fall in love with weak assets, the market has thousands of choices
4. The truth that those big shots won’t tell you
The first lesson for institutional traders is to learn stop-loss
Those who lose big money in a bull market are all trapped at the top without a stop-loss
Setting a stop-loss may earn less, but it will never lead to liquidation
Remember this formula:
Small stop-loss + big profit = survive
No stop-loss + luck = the road to zero
Look at your position, set your stop-loss right now. This is not a suggestion, it's your survival qualification certificate in the cryptocurrency market.
