🔥🔥🔥The lesson learned only after a liquidation!
Trading contracts without a stop-loss is essentially giving away money to the market for free.
Why do the vast majority of contract players end up at zero?
The problem is not the market, but the consistently missing stop-loss line.
A few days ago, a fan was liquidated for not setting a stop-loss. Taking this opportunity, I want to share with you the understanding of stop-loss, which I acquired through real money.
I have witnessed many people turn from 100,000 to a million, only to end up at zero due to a single position hold. I have also paid a painful price myself:
In March 2023, I shorted BTC at 28,000, expecting just a pullback, but it rose all the way to 35,000, and my account went to zero.
$BEAT
In January 2024, after SOL broke 120, I chased it up, only to see it spike down to 98, and again, I ended up at zero.
These experiences made me recognize two iron rules:
Holding a position might allow you to survive for a while, but it will eventually be fatal.
All liquidations start with the phrase "just wait a bit longer."
What truly saves you is not a high win rate, but a decisive stop-loss.
The stop-loss system I currently adhere to:
First level: Lifesaver for beginners — Set a loss limit when opening a position.
Immediately set a stop-loss after opening a position, with the extent set to "the inverse of the leverage."
20x leverage → Stop-loss 5%
10,000 U position → Maximum loss 500 U
First, learn not to get liquidated once, then talk about profit.
$PIPPIN
Second level: Dynamic stop-loss — Use profits to protect positions.
Profits are not for fantasizing, but for building defenses.
Floating profit 5% → Move stop-loss to cost
Floating profit 10% → Lock stop-loss at 5%
Floating profit 20% → Keep stop-loss at least 15%
Like saving a game, every step forward saves the progress.
Third level: Emotional stop-loss — Fight against yourself.
This is the easiest to overlook, yet the most fatal link.
Three consecutive losses → Force close the software, leave the screen
Euphoria after profit → Immediately withdraw part of the profit
Decisions made under emotional control mostly lead to losses.
A stop-loss is not giving up, but a tactical retreat.
A truly mature trader is not someone who never gets liquidated, but someone who can stay at the table after a liquidation and wait for the next round to begin.
There are always opportunities in the crypto world, but the prerequisite is — you still have the capital to participate in the next opportunity.
