At three in the morning, the K-line on the screen broke the stop-loss line for the Nth time. I closed the trading software and made a cup of strong tea. Over the past decade, from having my contract account go to zero three times to achieving a seven-figure profit, what ultimately turned my situation around was not 'discipline', but a re-understanding of the game rules.
Friend, if you have also stared at the flickering K-line in the middle of the night, experiencing the cycle of feeling like a genius when in profit and doubting life after a liquidation, we are probably the same kind of person.
Today, I won't discuss the cliché of 'mandatory stop-loss'; I just want to break through this layer of glass: in the crypto world, the ones who truly make money are never the rules, but the understanding of the rules.
1 Stop loss is a tool; don't treat it as faith.
When I first entered the space, I treated 'strict stop loss' as gospel, only to have $8,000 evaporate in repeated losses and slippage within six months. It wasn't until later that I realized: stop loss is just a 'backup plan' for strategy; the core is that your model itself must be profitable.
For example:
Trading BTC/ETH trend positions with 2x leverage, as long as the trend doesn't break, I can hold and sleep.
But playing altcoins? Even with 3x leverage, I must set stop losses—because a single needle can send you back from the conference room to the basement.
True veterans understand: whether to hold or not depends on the quality of the asset and the leverage. For core assets like BTC, holding lightly might allow for recovery; but once the trend reverses for altcoins, holding on is suicide.
2 Hidden costs: silent profit devourers.
Many people chase highs and lows every day, but at the end of the month, fees + slippage eat away half of their profits. This isn't called trading; it's working for the platform.
I now only make moves no more than 5 times a month, focusing only on key breakout positions (like the BTC weekly closing above previous highs). In this market, making gains in a segment is enough to cover six months of trial and error costs.
Less action means more profit.
In the crypto space, trading happens 24/7, and the biggest fear is 'itchy hands.' There was a client who averaged $100 profit daily, but frequent trading ended up costing him in fees. The real profitable trades may only happen within 5 minutes; waiting is the true path.
3 Leverage and assets must be 'mutually compatible.'
Using low leverage with BTC/ETH gives you the confidence to hold positions; but with altcoins, you must be cautious: I once held a 10x leveraged position on an altcoin, and it went to zero in 30 minutes.
This taught me a truth: you can lie flat in a trend, but don't smoke in a powder keg.
Just like the LUNA case in 2022: how many people thought that 'stablecoins' wouldn't crash, only to see prices nearly drop to zero within days. Those who held on had no chance to cut losses.
4 True experts are calculating probabilities.
The most ironic thing in the crypto space is: most 'analysts' are actually quite clueless. Some earn a monthly salary of 3,000 yuan but teach the new middle class how to trade cryptocurrencies; others rely on rehashed article templates, 'guiding' players daily.
But true players are quietly doing three things:
Backtesting strategies (like using tools such as the Wave Theory for point predictions).
Hitting key positions (like major support/resistance levels).
Using spot trends + futures hedging (earning crypto, not the price difference).
For example, during the crash on March 12, 2020, someone bought the dip at $7,800, but it dropped to $5,800 within minutes. However, he didn't double down for a third time because 'trying again is just gambling.' Holding the line is more important than chasing profits.
In the crypto space for a decade, I've encountered more pitfalls than I've eaten salt, but one core principle remains unchanged: making money relies on probability advantage, not on listening to others' calls.
If you're still debating 'stop loss or hold,' take a pause—throw your strategy into historical data backtesting and use small funds for trial and error. The market is always changing, but human nature doesn't: those who constantly shout 'must stop loss' may just want to fatten their rebates with your fees.
True players are all waiting for their own opportunities. After all, trading is simple as long as you can wait; trading is also difficult because no one wants to wait. Follow Xiang Ge for more firsthand insights and knowledge about the crypto space, precise points to become your guide in the crypto world. Learning is your greatest asset!#加密市场反弹 #美联储降息 $ETH
