Set a stop loss order before going to bed at night; this habit has saved me more than once. Really, letting the system make decisions for you is much better than letting fear make decisions for you.

Do you remember that feeling? Staring at the red positions, one thought in your mind: "Just hold on a little longer, if it rebounds a few points, I'll run." And then? It turned an even deeper green. Eventually, I didn't even want to open the app, wishing I could delete the trading software from my phone forever.

I have experienced it too. I once used "hope" as a reason and "recovering losses" as a goal, only to have the market teach me a harsh lesson — the profits I earned in three months were all wiped out overnight. At that moment, I truly understood: traders who do not understand stop loss are like racing cars without brakes, no matter how fast they go, they cannot escape the fate of crashing into a wall.

**Stop loss is never giving up, but rather a means to survive**

The first rule of survival in the cryptocurrency world is simple: only by staying alive can you have a chance to turn things around; those who remain are the ones who win.

I have seen too many people (including myself in the past) treat stop loss as a disgrace, preferring to stubbornly hold on rather than "cut their losses." Look at how it turned out in the end? Small losses turn into big losses, and big losses turn into total liquidation. In the crypto world, one day is like a year in the real world; this is not an exaggeration, but a true reflection. The saddest part is not the stop loss, but those who are clearly about to be liquidated yet still show off in the group.

Since then, I have set a strict rule for myself: for every trade, the stop loss position must be determined at the moment the position is opened. This is not only discipline but also a demonstration of being responsible for oneself.

**Several Practical Stop Loss Methods**

After countless trial and error over the years, I have finally summarized a few effective methods:

**Moving Average Positioning Method** —— When going long, set the stop loss a little below the 5-day or 10-day line. It sounds basic, but these positions are effective because they often represent key support for the trend. The positions are not chosen randomly; they reflect the consensus of market participants.

**Percentage Fixed Method** — This is the lazy person's solution and also the most straightforward. Once the position is opened, a stop loss is triggered when the loss reaches 2% or 3%, with no room for negotiation. It may seem easy to get swept away, but in the long run, this mechanical execution can actually protect your principal.

**Support Level Method** — For cryptocurrencies with obvious technical patterns (such as mainstream coins like ETH), look for previous highs or clear support areas as references. Breaking through these positions is a signal; when to leave, just leave.

**Psychological Stop Loss** — This is the most difficult and the most critical. Set a maximum drawdown percentage that you can accept, and once this line is reached, you must execute it no matter what. No matter how tempting the rebound expectation may be, it cannot change this decision.

**Why is stop loss so difficult**

To be honest, executing a stop loss is a hundred times harder than writing it down. When you see a small loss, your mind is always playing a game: "Maybe the next candlestick will bounce back." This psychological trap is like the self-deception of a gambler.

The volatility of the crypto market is already significant, which makes it easier for us to believe that "this time is different." But the market will not change its trend because of your reasoning. Instead of gambling there, it's better to strictly follow the plan and control the risks.

I trade less now, but the success rate of my trades is actually higher. It's not because my predictive ability has improved, but because I have finally let go of those unrealistic expectations and let stop loss protect me. Sometimes breaking even is a profit, and staying alive is a win.