Afraid of stop loss? You’re not afraid of getting liquidated or holding on, so what are you afraid of stop loss?



Think about it, what is Get Liquidated? It means the account is completely zeroed out, the hard-earned principal is turned to ashes, and the ultimate failure of being deprived of any chance to turn things around. What about holding positions? It's watching losses snowball out of control, being unable to sleep at night, living in fear, praying that the market will show mercy and allow you to "break even," but the result is often exhausting the margin or being forced to cut positions at the most desperate moment, suffering losses far beyond expectations. These catastrophic consequences that can destroy a trading career seem to be something you can face "calmly," even with a hint of luck to gamble.

So, stop loss - this is merely a tool to cut off single losses, protecting your precious principal and trading life - what exactly are you afraid of?

What you are afraid of is nothing more than that little "face", afraid to admit that you made a wrong judgment this time; what you are afraid of is that little "possibility", what if the market reverses right after the stop loss? What you are afraid of is the temporary pain of "cutting losses". But it is precisely this avoidance of small pain and the obsession with the illusory "perfection" that exposes you unknowingly to the edge of the great pain abyss of getting liquidated and deep holding positions.

The key to cracking it lies in becoming a machine: fixed positions, fixed stop loss.

1. Fixed Position: Don't let greed and fear distort your scale.
In every trade, no matter how "confident" you appear or how "rare the opportunity" seems in the market, you must use the same proportion of capital to build your position. Don't "gain a pound of meat, lose a pig"—when making money, you cautiously dare to bet only 1 BTC, but when losing money, you act like a gambler who has lost their mind, frantically increasing your stake to 20 BTC, trying to turn the tide in one go. This is a shortcut to bankruptcy.
Fixed positions mean: constant risk exposure. Regardless of how the market fluctuates, your maximum potential loss per trade is clear and controllable. It forces you to assess whether the risk/reward ratio of each trade is reasonable, rather than being influenced by emotions or market noise.

2. Fixed stop loss: ruthlessly executed, with no exceptions.
When opening a position, you must clearly and uniquely set your stop loss level. This level is an objective position calculated based on your strategy, key support/resistance levels, and volatility, and it is definitely not a "rubber band" that is moved arbitrarily based on profit and loss or emotions after opening the position.
The stop loss range must be fixed: whether based on a percentage of ATR or a breakout of key price levels, your stop loss logic must be clear and consistent. You cannot use a 20-point stop loss for one trade and then widen it to 50 points for the next trade just because you feel the opportunity is good. A fixed stop loss range ensures the discipline of risk control.

Be a ruthless executor: Did the market hit the stop loss point? Close the position immediately, without hesitation. Don't think about "let's wait and see", don't fantasize about "is the big player sweeping the stop losses", and don't hesitate because "I was so close to breaking even". Execute as soon as it hits, cold as a machine. Remember: stop loss is not failure, but the cost of success, the ticket to this "survival game" of trading.

From "humanity" to "machinery"

The hardest thing to overcome in trading is not the market, but your own greed, fear, and lucky thinking. The painful lessons of getting liquidated and being deeply trapped often stem from the avoidance of "small stop loss" and the indulgence in position management.

Force yourself to become an "emotionless trading robot"

The number of bullets is constant (fixed position) in each attack.
Every retreat is clear and undeniable (fixed stop loss).
No emotional interference, no last-minute changes, only ironclad discipline.

Only in this way can you truly protect your capital, survive the brutal market fluctuations, and be qualified to talk about long-term profits. Afraid of stop loss? No, what you should really be afraid of is your heart that cannot execute stop loss and allows risks to expand infinitely. Abandon it and embrace the coldness and precision of machines; that is the way to survive and succeed.
PIG-3.14%
ATR1.13%
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