2026-01-19 19:24:36

I recently encountered a trader whose account shrank by half in half a year. After a deep conversation, I realized that he’s not bad at judging the market direction, but he just can’t cut losses or hold onto profits. This problem is very common in the crypto world. Today, I’ll share the pitfalls I’ve stepped into and the strategies I’ve summarized, all in one go.

**1. Stop-loss is insurance for your account, not a burden**

Many people frown when it comes to stop-loss, always thinking "Maybe if I hold on a bit longer, I’ll break even." But how crazy is the crypto market? One news event or a big red candle can cause a leveraged account to be liquidated instantly. Data shows that 90% of beginners lose money in their first year, and 80% of them are forced to liquidate eventually, mainly due to poor risk control.

My principles are strict:

**Single trade loss should not exceed 2% of total funds.** For example, with a 100,000 USD capital, lose no more than 2,000 USD per trade, and close immediately at the stop-loss. This is not regret; it’s the prerequisite for survival.

**Place stop-loss below the actual support level.** Don’t just set a 5% stop-loss and call it a day. Market volatility can wipe out your order. For instance, Bitcoin has clear support at 60,000; set your stop-loss below 59,500 to leave room for market fluctuations.

**Don’t rely on "feelings" to hold positions.** The market won’t reverse just because you insist. Holding stubbornly usually ends with liquidation. Stop-loss is risk management; a seatbelt is more valuable than the accelerator when crashing.

**2. Think the opposite about adding positions: profit first, cut losses**

Another mistake this trader made was trying to make up for losses by adding more positions, increasing losses, and sinking deeper. The real profitable logic is completely opposite—use profits to add positions, never add when losing.

How to do it practically:

**Only consider adding when there’s unrealized profit.** For example, if a long position has a 10% unrealized gain, add to the position when it retraces to a support level, but do not leverage up. Even if the market moves against you, you’re just holding more coins, not risking liquidation.

**Pyramid adding method.** The first addition is the largest proportion, and subsequent additions are smaller. This way, you lock in previous profits, and even if the market reverses later, you won’t wipe out all your gains.

In simple terms, controlling risk and expanding profits are two different strategies—defense relies on strict stop-loss, offense relies on adding after profits. Master both, and your account can last longer and grow bigger.

BTC-0.25%

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ruggedSoBadLMAO

· 4h ago

Honestly, the idea of cutting losses really weighs on my mind, but your theory definitely makes sense. Where are those people who stubbornly hold now? Liquidated and cleared out, probably. I've memorized the 2% stop-loss; it's indeed a prerequisite for survival. The strategy of adding to losing positions, I used to play that way before. Thinking back, it was really stupid. Adding to winning positions sounds simple, but in practice, it's easy to get nervous and hesitate. Setting a stop-loss below the support level is a good detail; it's much better than blindly setting 5%. The crypto world is a psychological game; technical analysis is secondary.

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YieldChaser

· 8h ago

Cutting losses is really an art; it sounds simple but it's deadly to execute. --- It's that same set of position-adding logic. Tried it, and it's indeed not as easy to lose everything. --- Adding on floating profits sounds right, but I still tend to be greedy. --- A 2% stop loss sounds too conservative, but... after a big loss once, you'll know if it’s worth it. --- Pyramid adding—I'll have to try it. It's much better than adding randomly as usual. --- The biggest fear is the mindset of "Hold on a bit longer, maybe it will break even." I've fallen into that trap too. --- Risk control, honestly, is about living longer than making quick money. --- Everything seems logical, but why is it so hard to follow through? --- A single trade with a 2% loss limit—must remind myself of this point.

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SellLowExpert

· 8h ago

Listen, I’ve experienced countless painful lessons from cutting losses, and I’m really not cowardly. Only when there’s unrealized profit do I dare to think about adding positions; when there’s a loss, you must obediently cut losses. Most people who think the opposite end up blowing up their accounts. I’ve set a 2% stop-loss line long ago; staying alive is more important than making money. Seeing that brother keep adding as he loses more, I knew he was close to a margin call. This routine is all too familiar. So, really, seat belts are worth more than the accelerator. I have deep personal experience with this.

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MissedAirdropAgain

· 8h ago

This is exactly the mistake I often make—watching unrealized losses deepen while stubbornly holding on, eventually getting liquidated. Cutting losses can really save your life; it's not something to be ashamed of. That's right, many people get stuck on the phrase "wait a little longer, it'll come back," and end up losing everything. I need to strictly follow the 2% stop-loss rule; I used to set it arbitrarily, which caused me to get wiped out too many times. The pyramid adding position strategy is pretty good; I need to study how to implement it properly. Honestly, increasing profits while adding positions and shrinking losses sounds simple, but actually doing it is damn hard—mindset is always the biggest enemy. Having a long-lasting account is indeed more important than going all-in in one shot; too many people in the crypto world lose everything overnight due to greed. I experienced the same problem as this trader a year ago, and only later did I realize that those who cut losses are the real earners.

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LiquidatorFlash

· 8h ago

90% of beginners lose money in their first year, 80% eventually liquidate everything... These statistics are really heartbreaking, it's not an alarmist statement.

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rekt_but_resilient

· 9h ago

Really, cutting losses is the hardest. Exactly right, I am that fool who stubbornly holds on. Honestly, stop-loss is just giving yourself a way out, otherwise you'll be washed out sooner or later. Adding to losing positions is truly deadly; I've seen too many people commit suicide this way. The saying "add more when profitable" hit me hard; I used to do the opposite. The 2% rule is indeed ruthless, but staying alive is way more important than making quick money. I hadn't thought through the detail of using support levels for stop-loss before, I’ve learned now. Holding onto a position feels like gambling; if you can't win the gamble, your account is gone. The pyramid adding method sounds simple, but executing it really requires discipline. The hardest part in the crypto world isn't seeing the right direction, but being able to hold on once you've seen it.

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airdrop_whisperer

· 9h ago

Cutting losses is really too difficult, I always want to hold on a bit longer --- Set stop-loss and go to sleep, much better than staring at the screen every day --- The more you lose and try to make up, the more you get, I've seen too many buddies like this --- I've tried increasing positions on floating profits, it does improve my mindset --- The 2% principle sounds low, but having your account still intact after half a year is really satisfying --- It feels like holding a position is gambling, I don't do that anymore --- Learning the pyramid adding strategy, slowly trying it out --- 90% of beginners lose money in their first year, I am that 90% haha --- I really regretted it at the moment of liquidation, now I strictly set stop-losses --- I didn't think about setting stop-loss below the support level --- Add to positions only when profitable, cut losses quickly, simple, brutal, and effective --- Seat belts are more valuable than the accelerator, that analogy is brilliant

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