On the day my account was wiped out, I finally understood one thing — contract traders who don’t set stop-losses are essentially just cash machines giving money to the market makers.

Look at those friends around me who got liquidated; their reasons for losing vary, but the core logic is the same: lack of risk awareness. A simple "wait a bit longer" can send your entire account to zero.

I’m no exception. During the 2023 downturn, I shorted BTC with 5x leverage, thinking "it will bounce back," but the opposite trend led to a direct liquidation. In 2024, when SOL broke out, I fell into the same trap—chasing a 10x short, and my account was gone in an instant. That moment made me realize: compared to win rate, stop-loss is what truly determines life or death.

Now, my trading rules have been simplified into three principles:

**The first principle is: Stay alive**

For beginners entering the market, the primary task is not to die. Set a stop-loss the moment you open a position — don’t wait until after the fact.

My algorithm is straightforward — the stop-loss ratio equals the inverse of leverage. For 20x leverage, set a 5% stop-loss; for 10x, 10%. For example, with 10,000U, using 20x leverage, the maximum loss is 500U. Even if you lose, it’s not enough to wipe you out. This isn’t cowardice; it’s the only way to stay alive and see the next market move.

**The second principle is: Dynamic protection**

Profits are not for dreaming; they’re for protecting what you already have.

If floating profits reach 5%, move your stop-loss to break even. If profits hit 10%, lock in at least 5%. If it rises to 20%, keep at least 15% of the profit as a stop-loss. It’s like saving your game — every win is saved, so you’re not afraid of a crash later.

I’ve traded ETH with over 20x leverage in real accounts, controlling initial stop-loss at 2%. With each upward move, I adjust the stop-loss higher, eventually locking in profits while keeping risk under control. Many people see their floating profits multiply and start dreaming, only to be brought back to reality by a sudden correction — I’ve seen this happen too many times.

**The third principle is: Emotional management**

After losing several trades in a row, close the app and calm down. Otherwise, you’ll get more anxious and go all-in. Even when profits are especially satisfying, take some out — don’t put everything in. Emotional trading is no different from giving away your money directly.

The contract market is never about who is braver or luckier; it’s about who follows discipline and manages risk meticulously. Stop-loss is not shameful; it’s your strongest weapon for survival in the market.

Opportunities in crypto markets are never lacking. What’s missing? The capital to stay alive and seize the next opportunity. Those who get wiped out are either lacking skills or simply haven’t mastered this fundamental principle.