2026-01-16 04:28:40

Most stories of losses among crypto beginners are quite similar—holding onto hope during a sharp decline, until liquidation and zeroing out. In my opinion, setting a stop-loss is actually very simple: use a small, tolerable loss to protect your principal and create opportunities for a comeback.

Think about it—if your principal is 1, earning more zeros doesn't matter. But conversely, with that 1, adding more zeros later isn't an issue.

**Three rules that high-leverage traders must remember**

The higher the leverage, the stricter the stop-loss requirements—no exceptions. Low leverage can be tolerated at 3%-5%, medium leverage should be controlled within 1%-3%, and for high leverage trading, the stop-loss point must be ≤1%.

Stop-loss settings should be based on solid reasoning, not random. Use support and resistance levels to determine them, which helps avoid interference from short-term price spikes. The most important point: once you set a stop-loss, execute it immediately when triggered—don't try to adjust it temporarily. This is the best way to combat human weakness.

**Two methods for beginners to get started**

First, use the fixed percentage method—limit each trade's loss to 2%-3% of the total account. Second, base your stop-loss on support/resistance levels: for bullish positions, place the stop-loss below support; for bearish positions, above resistance.

There's also an often-overlooked point: dual-currency investments also need stop-loss protection. If the market moves beyond your expectations, close your position early. Signal groups usually provide real-time stop-loss suggestions—beginners should follow them. Staying alive is the first rule of trading.

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.

17 Likes

Reward
17
9
Repost
Share

Comment

0/400

ForumLurker

· 4h ago

That's right, only by staying alive can you continue to play. Honestly, I’ve known this set of theories for a long time, the problem is that every time the market moves, I forget. If the principal is lost, everything is over. The stop-loss suggestions in the copy trading group are indeed reliable, just worried that some people are still greedy and don't execute. Leverage is truly a double-edged sword; high multiples can lead to quick riches or quick losses. I think the hardest part isn't knowing when to stop loss, but actually sticking to the discipline. Every time I think about waiting a bit longer, but in the end, I get liquidated—what a bloody lesson.

View OriginalReply0

GateUser-2fce706c

· 01-18 02:22

I've said it before, this wave of pullback is the best opportunity to get in, the key is to stay alive. The principal is 1, and the zeros afterward are meaningful. I explained this stop-loss logic three years ago. Those still holding positions now, frankly, just didn't seize the opportunity. Time waits for no one.

View OriginalReply0

ser_we_are_early

· 01-16 04:57

I only now realize that risking everything until liquidation, living is truly more important than making money. No doubt about it, human nature is just this greedy. I should have listened to this theory long ago; now it's a lesson learned through blood and tears. Set your stop-loss properly and don't be careless. I kept messing around because I always wanted to adjust, and that's why I failed. If the principal is gone, everything is over. I truly remember this this time.

View OriginalReply0

EthSandwichHero

· 01-16 04:56

You're so right, the luck-driven mentality kills silently. Not following stop-loss strategies will eventually lead to debt repayment. The principal is everything; protecting this 1 is truly key. Friends in the copy trading group have recently been overwhelmed again, still fantasizing about a rebound, it's hilarious. The more leverage you play with, the more addictive it becomes, and in the end, it's all lessons learned the hard way. Remember this: staying alive is more important than anything else.

View OriginalReply0

CounterIndicator

· 01-16 04:54

The final result of holding a position is often a margin call or liquidation, and that's true. Only with the principal surviving can there be a turnaround, I agree with that. Honestly, people who can't even stick to a 1% stop-loss with high leverage should just stop playing. I've used the support and resistance levels, and they are reliable. I'm just worried that beginners will still be greedy after hearing this, which is a common problem.

View OriginalReply0

CryptoCrazyGF

· 01-16 04:52

Well said, this trick of holding positions really is money-making Relaxing your mindset is a disaster, I remember stop-loss ≤1% The principal only has a chance to turn around if you stay alive, everyone This article is very thorough, a must-read for beginners I previously lost a lot because I didn't execute stop-loss, lessons learned with blood and tears Setting stop-loss at support and resistance levels is indeed much more reliable The key is not to change your mind at the last minute; human nature is just that tricky Getting trapped and still reluctant to stop-loss is all self-inflicted Dual currencies also need to follow rules, otherwise you’ll suffer heavy losses It seems that staying alive is truly the top priority, haha

View OriginalReply0

BlockchainBrokenPromise

· 01-16 04:51

Those who hold on until liquidation are the ones who don't listen to advice. Setting a stop-loss early can really save your life. That's right, only with capital can there be a chance to turn things around. Once you've lost everything, you can't play anymore. Nine out of ten people using high leverage regret it. A 1% stop-loss is really not excessive. Hoping for the best is basically asking for death. I feel this deeply. In simple terms, it's about execution. Once you've set it, don't change it. Making impulsive adjustments often leads to bigger losses. Newbies should learn the fixed ratio method; don't start with complicated tricks. Living through it and then making a profit—that's what hits home.

View OriginalReply0

GasFeeTherapist

· 01-16 04:51

That's right, living is the true way. I've seen too many people hold positions and end up with nothing. --- A stop loss of ≤1% is a bit harsh, but playing with high leverage indeed leaves no other choice. --- The phrase "capital is 1" is perfect; many people die because they can't bear to lose that tiny bit. --- Setting stop points at the support and resistance levels is the most annoying, but it's indeed reliable. However, during execution, it's still easy to waver. --- The fixed ratio method of 2%-3% sounds simple, but in reality, few can persistently follow through. --- I never thought before that double currency also needs a stop loss. It feels like many people die slowly this way. --- It looks simple, but in practice, there are only two words: uncomfortable. If you can't get past the mindset, all rules are just blank paper. --- High leverage sounds like quick profit, but it's actually dancing on the edge of a knife. A small mistake and the game is over.

View OriginalReply0