#我的Gate交易时刻 Let's talk again about the importance of take profit and stop loss — starting from the "1011" incident

1. Introduction: The historic "Black Friday"
October 10-11, 2024, the global cryptocurrency market experienced an unprecedented "bloodbath." In just 24 hours, the total liquidation amount across the network reached $19.2 billion, setting a record in cryptocurrency history. Bitcoin's price plummeted from about $115,000 to around $86,000, with a maximum drop of over 25%. This event, called "1011 Black Friday," caused countless investors to go from profit to loss overnight, even wiping out their accounts.
Markets are always forgetful, but the liquidation figures are eternal. This disaster has taught us a costly lesson: in the high-volatility, high-leverage world of cryptocurrencies, without the protection of take profit and stop loss, even substantial unrealized gains can vanish in an instant.

2. Deep insights from the "1011" incident
1. Macro risks have surpassed internal industry risks
Reviewing the top ten historical liquidation events, two of the top four are directly related to macro-political factors. The market crisis after 2024 shows that macro factors such as the Bank of Japan's monetary policy, U.S. presidential diplomatic and trade policies, and global interest rate decisions are enough to trigger market disasters. The cryptocurrency market has become deeply intertwined with traditional financial markets, making risk sources highly dispersed and difficult to predict.
2. Liquidation amounts are not proportional to price drops
Notably, the "312 disaster," which caused Bitcoin's largest single-day decline (-51.9%), involved only about $3 billion in liquidations. Meanwhile, the $19.2 billion liquidation during the "1011" event resulted in a "mere" 13.5% drop. This indicates that:
Market panic levels, liquidity depth, and leverage structure jointly determine the impact on prices.
High leverage amplifies volatility and makes stop loss even more critical.
3. High leverage is the direct culprit of liquidations
In the "1011" event, many altcoins fell far more than Bitcoin, with just 2x leverage enough to wipe out positions. This warns us: contract trading must strictly control leverage multiples and keep risks within manageable limits. In extreme market conditions, survival is more important than chasing huge profits.

3. Take profit and stop loss: the trader's "safety cushion"
What are take profit and stop loss?
Take profit / Stop loss (TP/SL) are conditional order types. When the market price reaches the preset trigger price, the system automatically executes a close position, helping traders lock in profits or limit losses.
Take profit: automatically close when target profit is reached, avoiding greed-driven profit reversal
Stop loss: automatically exit when losses reach an acceptable level, preventing small losses from becoming large ones

Gate platform's take profit and stop loss setup
Spot trading take profit and stop loss:
1. Enter the trading page, click "Take Profit/Stop Loss" order in the order area
2. Set the trigger price (TP for take profit / SL for stop loss)
3. Set the order price and quantity
4. Confirm and place the order

4. How to scientifically set take profit and stop loss?
1. Prioritize stop loss
Always consider "how much loss can be tolerated" first, then consider "how much to earn." Generally, it is recommended that risk per trade does not exceed 2%-5% of total funds.
2. Adjust based on volatility
Cryptocurrency markets are highly volatile. Setting stop loss too tight risks being "swept out," while too wide loses protective value. Refer to the ATR (Average True Range) indicator, and set the stop loss distance at 1.5-2 times ATR.
3. Moving stop loss strategy
When holding a profitable position, gradually move the stop loss closer to the cost price to achieve "break-even exit"; if profits continue, follow the trend to move the stop loss, letting profits run.
4. Avoid common mistakes
Frequent modification of stop loss: once set, it should be strictly followed, not expanded due to "waiting and watching"
Not setting a stop loss: this is the most dangerous behavior, as the "1011" event has shown
Too close take profit and stop loss distances: easily triggered by normal fluctuations, leading to frequent trades

5. Risk management advice for investors based on lessons from the "1011" event
1. Strictly control leverage multiples
High leverage is the direct cause of liquidation. Be sure to keep contract leverage within your risk tolerance to avoid forced liquidation in extreme conditions.
Always remember: survival is more important than chasing huge profits.
2. Broaden information sources
Focusing only on crypto news is far from enough. Macro information such as global central bank interest rate decisions, elections, diplomatic policies of major countries, and international trade disputes must be included in your investment information sources.
3. Use take profit and stop loss wisely and diversify
Whether spot or contract trading, preset take profit and stop loss points are basic insurance. Also, avoid putting all funds into a single asset; proper diversification can effectively resist single-point risks.
4. Stay calm and avoid FOMO
Market surges and crashes can trigger "fear of missing out" emotions. Before making any trading decision, calmly evaluate, and do not let emotions dominate judgment.
Investing is like cultivating immortality; immortals do not panic.

6. Conclusion: Respect the market to last long
The catastrophic "1011" liquidation event painfully proves:
In today’s financial environment, no market is immune from the enormous influence of global politics and economics.
The high leverage characteristic of cryptocurrencies, when faced with macro shocks, amplifies volatility dramatically, increasing both risks and opportunities exponentially.

Take profit and stop loss are not about surrender, but about wisdom; not about conservatism, but about protection. They are the trader’s "safety airbags" in the market, and a talisman for navigating bull and bear markets. As the old saying goes: "Those who buy are apprentices, those who sell are masters, and those who stop loss are the ancestors."
May every investor learn from the "1011" event, establish disciplined trading habits, and go further and steadier in the world of cryptocurrencies full of opportunities and risks.