[Analysis of the Necessity of Trading Stop Losses]



In cryptocurrency trading, neglecting stop-loss orders is a common misconception. Some traders rely on subjective judgment to forgo setting stop-losses, only to face extreme market volatility, which can ultimately lead to significant losses.

1. High leverage intensifies risk.
Under the high leverage and high volatility characteristics of cryptocurrency, a single misjudgment can quickly deplete the capital. Without stop-loss settings, reverse fluctuations can cause losses to multiply. A large number of accounts without stop-loss protection can be wiped out instantly.
2. Luck cannot be sustained
Occasionally, due to the reversal of flight conditions, one might avoid the luck of losses from the bamboo shoots, but it is difficult to resist the systemic risks of the persimmon market. The endless bamboo shoot accounts under extreme flight conditions are like a time bomb, which may be triggered at any moment.
3. Bamboo shoots are the foundation of survival
Reasonable loss limits can effectively protect the account: mature traders usually control a single loss within 2%-5% of their account funds, leaving room for strategy adjustments.
4. The vicious cycle of not just bamboo shoots
Holding positions can easily trigger the "Hold Dan - Supplement Chang - Embrace Chang" cycle, increasing psychological pressure and irrational decision-making, and even affecting personal financial safety. Not setting stop-loss orders under high leverage is equivalent to completely exposing one’s account to market fluctuations.
5. Scientific Bamboo Shoot Stopping Strategy
The stop-loss is a risk protection mechanism that should be incorporated into the trading system.

- Quantitative Risk: Set the maximum loss limit for Danbi in advance;
- Technical combination: Set stop-loss points based on support/resistance levels;
- Review and Optimize: Adjust the stop-loss strategy based on trading records.

Although stopping bamboo shoots may incur short-term costs, in the long run, it is a core method to avoid risks and ensure asset safety. Trading is essentially risk management, rather than blindly holding and gambling. #成长值抽奖,赢 iPhone 16 和精美周边 #中本聪净资产超比尔·盖茨 #六月行情预测
View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)