The story of liquidation is often not caused by a single bad decision, but by multiple misjudgments accumulating into a disaster. Those accounts that eventually go to zero usually go through this process: the first loss of 5% is acceptable; the second loss of 8% starts to make you nervous; then a third loss of 10%... Under continuous hits, the principal is gradually exhausted.

One effective way to avoid this spiral decline is to strictly enforce the principle of "not exceeding 3% of the total position in a single loss." It sounds simple, but in practice, it is extremely powerful.

For example, with a $10,000 account. If you allocate $2,000 per trade (which is a standard 20% position size), and use 10x leverage on mainstream cryptocurrencies like BTC or ETH, then a 1.5% stop-loss corresponds exactly to a $300 loss—just 3% of the total funds. Once the stop-loss is triggered, exit immediately, and that’s it.

What is the actual effect? Suppose you fail three consecutive judgments, with a total loss of only 9%. You still have $9,100 of principal. This amount is enough to help you calm down, analyze the next market cycle, and wait for real profit opportunities. In contrast, traders without loss limits might lose 10%, 20% in a single mistake, and quickly run out of funds.

The essence of stop-loss is actually "controlling damage." In the crypto market, learning how to lose is actually more important than learning how to make money. The most practical way to implement stop-loss is to keep each loss within a controllable range. This is not conservatism; it is survival wisdom.