When I first encountered contracts, I was naively absurd. Holding onto my principal, the only thing in my mind was a single phrase—'Fixed 3% stop loss, steadily earn U.'
This almost became my golden rule, memorized like a mantra.
Every time I opened a position, I would silently remind myself: 3%, not more, not less, absolutely no leniency.
Whenever the market fluctuated, I strictly adhered to it, fearing that breaking the rules would lead to even greater losses.
But the reality is—markets never follow the textbook,
Occasional 'false breakouts' and 'spikes' would directly knock me out, stop losses triggered frequently, profits not realized, but psychological pressure doubled.
During that time, I thought I was strict and professional,
But upon reflection, I realized I was merely bound by the rules.
Leverage itself is not the enemy, and fixed stop losses are not a universal key,
The key is how to flexibly operate by combining trends, positions, and pullbacks.
Gradually, I learned a few truths:
First, stop losses should be combined with support levels, not rigid percentages.
A slight market adjustment does not mean a liquidation; flexible stop losses protect the principal.
Second, trends are more important than rules.
If the direction is wrong, a 3% stop loss won’t save you; if the direction is right, even if slightly pierced through the stop loss, you can recover in the pullback.
Third, psychological management is the core.
Set the stop loss line before opening a position, but your mindset shouldn't be swayed by 'passive stop losses',
If you incur losses, you should calmly analyze the next step, rather than panic chasing positions or stubbornly holding on.
That experience taught me:
The biggest trap for beginners is not leverage, nor stop losses, but treating tools as a bible, executing rigidly.
Those who can truly survive in the crypto space understand how to flexibly respond to market conditions, control positions, and master the rhythm.
