With contracts, out of ten people playing, nine lose money, and the one left? Most likely, they're on their way to losing too. If you ask why, the answer is frighteningly simple—they simply have no idea what stop-loss means.

I've seen too many stories like this: an account grows from 100,000 to 1,000,000, seemingly on the verge of financial freedom, and then one market move wipes it all out, back to square one overnight. Even worse are those who added leverage or borrowed money to enter the market—after liquidation, not only is their principal gone, but they're also saddled with debt.

Just today, a friend who follows me blew up his account because he didn't set a stop-loss, losing 2,000,000 in one go. This made me think of the pitfalls I encountered back in the day, and I can't help but want to talk about just how important stop-losses really are.

# My Two Heartbreaking Liquidation Stories

**First Time: BTC Short in March 2023**
BTC soared from 28,000 all the way to 31,000. I impulsively opened a 5x leveraged short, thinking, "I'll close the position when it pulls back." The result? The price surged crazily toward 35,000, and I watched my margin go to zero.

**Second Time: SOL Long in January 2024**
When SOL broke through 120, I thought it was my chance. I went all-in long with 10x leverage, thinking, "I'll run once it breaks the previous high." Who knew the price would suddenly drop to 98—another liquidation, account wiped out.

These two lessons taught me one thing: you might survive holding a losing position nine times, but the tenth will ruin you. Every liquidation story starts with, "Let's wait and see."

# How to Set a Stop-Loss? Three Life-Saving Tips

# # Must-learn for Beginners: The Three-Second Rule
Within three seconds of opening a position, your stop-loss must be set. How to set it? Use your leverage multiple—20x leverage, set stop-loss at 5%; 10x leverage, set stop-loss at 10%.

For example: you have 10,000 USDT, open a 20x long position. Set your stop-loss at a 500 USDT loss—that’s 5%. Don’t hesitate. Set it as soon as you enter. This is a hard rule.

# # Advanced Move: Trailing Stop-Loss
Once you have floating profit, your stop-loss should move with it:
- Made 5% profit? Move stop-loss to entry price, at least break even.
- Made 10% profit? Move stop-loss up, lock in 5% profit.
- Made 20% profit? Move stop-loss higher, secure 15% profit.

It's like saving your game progress—you can't let the market take back what you’ve earned.

# Practical Example: How to Use Stop-Loss to Capture a Full Market Move

Using the ETH move in May 2024 as an example:

I opened a long at 3,600, with 20x leverage. Initially, stop-loss was set at 3,520 (cut at a 2.2% drop). When the price hit 3,700, I moved stop-loss up to 3,620, so I wouldn't lose. At 3,800, I moved stop-loss up to 3,720, locking in 3% profit.

Eventually, ETH surged to 4,100. By constantly adjusting the stop-loss, I captured the entire move. Throughout, the real risk I took was only the initial 2%.

# A Few Heartfelt Words to End

Setting a stop-loss isn't admitting defeat; it's giving yourself a way out. Everyone who’s lasted in the market has been liquidated at some point. The difference between them and the average trader is decisiveness with stop-losses.

The crypto space never lacks opportunities; what’s scarce is the capital to survive until the next one. Remember this: as long as the green hills remain, there will always be wood to burn.