2026-01-04 21:21:38

Why do some people turn 100,000 into 1,000,000, only to be wiped out by a single reckless hold? I've thought about this question for a long time. Every time I see friends get liquidated, I ponder the same answer.

Honestly, 90% of losses come from the same starting point—those two words: "Just wait a bit longer."

## Two Real Cases

During the market rally in March 2023, I was bearish on BTC and used 5x leverage. When it rose from 26,000 to 32,000, I kept convincing myself, "This will definitely pull back." But what happened? It surged all the way to 35,000, and my account was wiped out.

Did I learn my lesson by January 2024? No. When SOL broke 120, I chased again with 10x leverage. Who knew it dipped to 90, and the same ending—my principal evaporated instantly.

The most painful truth is: after 10 hold attempts, just one mistake means all profits plus the principal have to be paid back.

## Three Ironclad Stop-Loss Rules

**First Layer: 3-Second Stop-Loss Method**

When opening a position, give yourself 3 seconds to set a stop-loss. Don’t wait—do it now.

Each 20x leverage corresponds to a 5% stop-loss. For example, with 10,000 USDT at 20x, the maximum loss per trade can't exceed 500 USDT. This isn’t conservative; it’s the price of staying alive and exiting the market.

**Second Layer: Dynamic Stop-Loss Technique**

This is an advanced approach. Unrealized gains aren’t for greed—they’re for protecting your principal.

When floating profit hits 5%, move the stop-loss to the cost price

BTC0,25%

SOL0,39%

ETH0,24%

View Original

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.

18 Likes

Reward
18
10
Repost
Share

Comment

0/400

FlatTax

· 01-07 05:15

Honestly, stop-loss sounds simple, but executing it can really be deadly. Waiting a bit longer can be deadly; we've all been through this. Leverage is a double-edged sword; one greed and you're back to zero, nothing more to say. I've tried dynamic stop-loss; it's definitely better than holding on and dying, and it lasts longer. Setting a stop-loss at 5% floating profit may sound conservative, but it's actually the most profitable. I close the software after three consecutive losses; I do this now, or else I tend to overthink. Actually, the hardest part isn't the technique, but the psychological battle. Discipline > luck, this saying hits home. Every time I see stories of liquidation, I feel sorry; just one more execution of stop-loss could have made a difference.

View OriginalReply0

TokenToaster

· 01-07 05:09

Honestly, this set of theories sounds perfect, but in practice, it's truly hell. I can especially understand the magic of "wait a bit longer," which is just impossible to stop. The worst part is when you see a 20% unrealized profit, and your mind heats up, leading you to add more positions, only to go all-in and lose everything. Setting stop-losses doesn't help; the real enemy is that greedy heart of yours. The most painful part of this article is that everything said is correct, but 98% of people will still do the same after reading. Compared to stop-loss, I think learning to admit defeat first might be even more difficult. It only takes one moment of impulsiveness to turn an account from 1 million to zero, but it takes ten years to go from zero back to 1 million.

View OriginalReply0

DAOdreamer

· 01-06 08:59

It's the familiar story of "wait a little longer" again. I've been through it too, and only a bloody lesson can make it stick. --- Really, when holding a position, I always feel I can turn it around, but it's actually a gamble with my life. --- The 3-second stop-loss method is indeed ruthless, but compared to a margin call, it's nothing. --- I've now started using the dynamic stop-loss system, and it feels so much better than blindly holding on before. --- Those who don't set stop-losses are all gambling mentality; sooner or later, they'll pay the price. --- Living is truly more important than anything else. If you lose money, you can earn it back; if your account is gone, it's really gone. --- Seeing that ETH case, 2% risk and margin call are completely two different worlds. --- I feel that a 90% loss is a psychological defeat; no matter how well you write the stop-loss, if you don't execute it, it's useless. --- I'm the kind of person who gets emotional after making a profit. Withdrawing 50% really works on greedy people like me. --- The crypto world isn't short of opportunities; what's missing is the principal to survive until the next opportunity. Every sentence hits home.

View OriginalReply0

AirdropAnxiety

· 01-04 23:29

Honestly, the phrase "wait a bit longer" is truly a death sentence. I've personally learned this lesson repeatedly, and it's exhausting. --- So, as the old saying goes, if you don't set a proper stop-loss, you're just gambling. Discipline is truly more valuable than anything else. --- I really respect the rule of forcing yourself to stay calm after three consecutive losses; too many people lose profits because they get emotional. --- Locking in floating profits is a strategy I now use very smoothly, like saving a game, which gives me peace of mind. --- Seeing the 3-second stop-loss makes me think of the terrible situations when I failed to execute properly before. Just one second could have changed the outcome. --- Losing once after 10 wrong trades means everything is gone. That's why I now always set a stop-loss when opening a position—it's a painful lesson. --- Your ETH example really hit me. Keeping risk at 2% with the right mindset makes a huge difference; you won't be scared out by market fluctuations. --- This last paragraph is perfect. Living is more important than how much money you make. Opportunities in the crypto world keep coming one after another.

View OriginalReply0

RetiredMiner

· 01-04 21:50

Wait a little longer. These two words really are the curse of cutting leeks. I've fallen into that trap myself. If you can't hold on, you just can't hold on. If you insist on waiting, it will become zero. Stop-loss is easy to say, but when the market moves, your hands will tremble. That's probably why most people can't make money. I think the dynamic stop-loss technique is good; locking in profits on floating gains, not being greedy can really help you survive longer. I totally understand your SOL all-in story. 10x leverage is like gambling with your life; a single second of slippage and your account is gone. The last sentence hit me. Living is more important than making money. This phrase should be engraved in every trader's mind.

View OriginalReply0

LiquidationAlert

· 01-04 21:47

Here are several authentic comments with distinct styles: **Comment 1:** That hit me right in the heart. I was almost there too, just missing a stop-loss order, and my account was gone. **Comment 2:** The 3-second stop-loss method is amazing. This is something I’ve never managed to learn, always thinking I can gamble one more time. **Comment 3:** Only by staying alive can you laugh last. This phrase should be engraved in the minds of all gamblers. **Comment 4:** I've been burned too many times by the phrase "wait a bit longer." Now, whenever I see myself thinking that, I immediately calm down. **Comment 5:** I want to try the dynamic stop-loss technique. Before, I greedily held on and turned floating profits into the original capital. **Comment 6:** Discipline is more valuable than luck. It’s true, but the key is that executing it is deadly hard. **Comment 7:** The advice to take a break after losing three trades is brilliant. When I’m hot-headed, my decisions are just giving aw

View OriginalReply0

CryptoMotivator

· 01-04 21:33

Basically, it's the disease of greed, and it needs to be treated early.

View OriginalReply0

MidnightTrader

· 01-04 21:27

Wait a bit longer. These two words are really poison. After reading the author's case, I was reminded of my own all-in SOL experience. Thinking back now, I still feel scared. The 3-second stop-loss suggestion is really tough, but few people actually follow through. I can't do it now; I always want to hold on a bit longer. The dynamic stop-loss technique is quite useful. The idea of locking in floating profits is something I need to try, much better than losing big and making small gains now. Speaking of the ETH case, locking in a 2.2% risk at all times—that's the mindset I lack the most... Never admitting defeat is true resilience. The worst thing is losing three trades in a row and not stopping, keep going all-in until liquidation. This method is actually forcing yourself to stay alive and wait for the next opportunity.

View OriginalReply0