#数字资产市场动态 # The Truth Behind Contract Liquidations

Losing 100,000 to zero, then starting over—over these years of trading, I’ve developed a survival strategy through countless liquidations. Honestly, 90% of contract traders end up losing everything, and the core reason is only one: **They simply don’t know how to cut losses**.

Have you ever met someone who—earns 1 million in a day, then loses it all because of one bad hold? I’ve seen it too many times. Today, I’ll lay out the pitfalls I’ve stepped into over the years, one by one.

## The Blood and Tears of Two Liquidations

**Case 1: March 2023, the BTC Lesson**

At that time, BTC soared from 26,000 to 32,000. I got greedy and shorted with 5x leverage. I thought, “It will just pull back after a little more rise.” But what happened? The coin kept climbing to 35,000, and my position was instantly liquidated. That moment made me realize: **Holding a position once might keep you alive, but doing it 10 times guarantees a loss**.

**Case 2: January 2024, the SOL Nightmare**

When SOL broke 120, I chased the high with 10x leverage long. My plan was “Sell when it breaks the previous high.” But the market doesn’t follow logic—price dipped to 90, and my account was wiped out instantly.

What’s the most heartbreaking feeling? It’s not losing money itself, but the illusion of “just wait a bit, and I’ll get back to break-even.” I kept fooling myself like that, and the last time was deadly.

## Survival Stop-Loss Rules

Want to survive longer? Stop-loss is your protective charm.

### 1. Rapid Stop-Loss (Beginner’s Guide)

It boils down to three numbers:
- **Set a stop-loss within 4 seconds after opening a position**
- **Stop-loss distance = 1 ÷ leverage**

For example, with 20x leverage, set a 5% stop-loss. For a $10,000 position, $500 stop-loss. Sounds conservative? Exactly, it must be that cautious. As long as your capital is safe, the game can go on.

### 2. The Dance of Trailing Stop-Loss (Advanced Technique)

This is the most effective method I’ve used—**gradually moving the stop-loss as profits grow**:
- **When floating profit hits 5%** → move stop-loss to break-even (lock in no loss)
- **When floating profit hits 10%** → move stop-loss to 5% in profit
- **When floating profit hits 20%** → move stop-loss to 15% in profit

Think of it like saving your game progress. Once the gains are wiped out, it’s not worth it. This method allows you to ride the entire trend while never falling back into loss territory from profit.

### 3. Emotional Stop-Loss (Psychological Defense)

This is the most overlooked but crucial:
- **Lose 3 trades in a row? Close the app, go for a run or workout for 1 hour**
- **Just made money and feel euphoric? Withdraw 50% immediately**

Decisions made in a state of euphoria are 99% wrong. I’ve seen too many people open another position out of “itchy hands,” only to have their dreams shattered.

## Real Cases of Profitable Stop-Loss

**ETH Trade in May 2024**

Open position: Long at 3600, 20x leverage, initial stop-loss at 3520 (only 2.2% risk)

When ETH rose to 3700: Immediately move stop-loss to 3520, locking in 3% profit

Final market: ETH surged to 4100

**Result?** Captured the full rise from 3600 to 4100, risking only 2% initially. That’s the power of stop-loss—fixed risk, unlimited reward.

## Final Words

**Stop-loss isn’t surrender, it’s tactical retreat.**

All the big players you admire have been liquidated before. What’s the difference? They cut losses fast enough. The crypto market isn’t short of opportunities; what’s truly lacking is your capital to survive until the next one.

The only reason you can sit at the poker table and play is because you still have chips. Once your capital is gone, you can only watch others play. That feeling is truly uncomfortable.