It sounds very professional, but in reality, it's the "chronic poison" for countless novice accounts.
The logical trap here is:
Small Stop Loss = Frequent Liquidation
High Take Profit = Extremely Low Trigger Probability
Result = Losing small amounts countless times, and sometimes not even hitting once
You think you're "controlling risk and increasing profits," but in fact, you're using the worst odds to engage in the most frequent failed trades.
Why is "small stop loss" especially deadly in the crypto world?
【Traders use stop loss and take profit expectations to anticipate the upcoming volatility range and the direction of the first breakout. Hitting take profit first means victory; hitting stop loss first means failure.】
Volatility is normal, not an exception. 1%–2% swings are daily occurrences. Placing your stop loss within emotional zones essentially hands your money over to noise.
Liquidity mainly consumes near stop losses. Large funds don't need to predict trends; they only need to know where the most stop loss orders are clustered. Small stop loss is exactly the densest "liquidity pool."
So where's the trap with "high take profit"?
High take profit ≠ Big Gains
High take profit = Low Win Rate
Every trade you make is a bet on "this time, the trend will definitely move," but the reality is:
Most markets won't reach the target you set.
This leads to the classic scenario: Stop Loss: -2~3% (several times a day) Take Profit: +10~20% (not reached even in a month)
And if combined with heavy position sizes,
The account curve isn't a blow-up loss; it's slowly worn down over time.
The truth is often harsh.
To survive long-term, do the opposite:
Stop loss is not small, but logical
Take profit is not greedy, but repeatable
It's about the odds structure, not a miracle in a single trade
Small stop loss gets repeatedly hit
Waiting endlessly for the "big trend to recover"
Emotions grow heavier, positions become more chaotic
Standing on a parameter combination doomed to lose money.
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Small Stop Loss, High Take Profit
It sounds very professional, but in reality, it's the "chronic poison" for countless novice accounts.
The logical trap here is:
Small Stop Loss = Frequent Liquidation
High Take Profit = Extremely Low Trigger Probability
Result = Losing small amounts countless times, and sometimes not even hitting once
You think you're "controlling risk and increasing profits," but in fact, you're using the worst odds to engage in the most frequent failed trades.
Why is "small stop loss" especially deadly in the crypto world?
【Traders use stop loss and take profit expectations to anticipate the upcoming volatility range and the direction of the first breakout. Hitting take profit first means victory; hitting stop loss first means failure.】
Volatility is normal, not an exception. 1%–2% swings are daily occurrences. Placing your stop loss within emotional zones essentially hands your money over to noise.
Liquidity mainly consumes near stop losses. Large funds don't need to predict trends; they only need to know where the most stop loss orders are clustered. Small stop loss is exactly the densest "liquidity pool."
So where's the trap with "high take profit"?
High take profit ≠ Big Gains
High take profit = Low Win Rate
Every trade you make is a bet on "this time, the trend will definitely move," but the reality is:
Most markets won't reach the target you set.
This leads to the classic scenario:
Stop Loss: -2~3% (several times a day)
Take Profit: +10~20% (not reached even in a month)
And if combined with heavy position sizes,
The account curve isn't a blow-up loss; it's slowly worn down over time.
The truth is often harsh.
To survive long-term, do the opposite:
Stop loss is not small, but logical
Take profit is not greedy, but repeatable
It's about the odds structure, not a miracle in a single trade
Small stop loss gets repeatedly hit
Waiting endlessly for the "big trend to recover"
Emotions grow heavier, positions become more chaotic
Standing on a parameter combination doomed to lose money.