Isn't stop loss supposed to prevent bigger losses?


There are several reasons why people still get liquidated.
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Next, I'll try to explain my understanding of stop loss from various perspectives!

It can be seen that the most common way we trade is to set a stop loss after entering the market, set a certain position, and control the loss of a single trade, so as to prevent ourselves from suffering greater losses.
#BTC
In my opinion, having stop loss will not instantly cause Get Liquidated, so the ultimate reason for getting liquidated is not because of stop loss. If you think about it, if you trade with a Heavy Position, you will eventually Get Liquidated, which is determined by human nature, because you cannot bear the psychological pressure brought by Heavy Position, neither stop loss nor not having stop loss.

It can be said that if you start Heavy Position trading, whether you stop loss or not stop loss, it is not of much help, because this approach is destined to end up in Get Liquidated in the end!
#ETH
If it is a Light Position trade, there is no substantial difference between stop loss and no stop loss, because in a Light Position trade, you don't need to constantly stop loss. The tolerance space of a Light Position is larger, so you can wait until the market truly reverses before considering Close Position, instead of constantly stop loss during the process!

So, stop loss and not stop loss are not the fundamental reasons for getting liquidated. The fundamental reason for getting liquidated lies in heavy positions, continuously increasing heavy positions, and continuously trading against the trend! If you don't believe it, you can pull up your account or take a look at those accounts that got liquidated, to see what exactly led to the liquidation of the account. In fact, it has little to do with stop loss, because whether you get liquidated depends not on whether you stop loss, but on your position and your emotions.
. But many times it may be related to time, and also related to trends! Many people look for me on my homepage.
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