#比特币与黄金战争 How should you play stop-loss and take-profit? Many people fall into the trap of "small stop-loss, high take-profit."

This idea is everywhere in the industry—set a tight stop-loss line, then wait for the coin to skyrocket before selling. Sounds sexy, right? But what’s the result? Newcomers’ accounts shrink with each cycle under this logic.

Where does the problem lie?

First, let’s talk about small stop-loss. The volatility in the crypto market is inherently high, especially for small and mid-cap coins, where fluctuations are common. If your stop-loss is too tight, a market correction will trigger it immediately. Then what? You watch helplessly as the price rebounds. Repeated small losses like this gradually deplete your account.

Next, look at high take-profit. Setting a target too far away means what? Most likely, you won’t reach it. You miss short-term small gains, fixate on distant dreams, and end up letting opportunities slip through your fingers. You don’t make money, and prolonging your holding period increases risk.

What is the correct approach?

Stop-loss should be based on actual conditions. Consider recent market volatility, the specific characteristics of the project, and your risk tolerance—these factors should inform your stop-loss level. Don’t blindly chase "small" losses.

Take-profit should be realistic. Which price levels are actually achievable? Based on recent market trends and technical analysis, find a practical target. Gradually accumulate profits step by step, rather than always aiming for a sky-high leap.

Ultimately, risk management is about this—it's not just about whether to tighten stop-losses or set distant take-profits, but about adapting flexibly to the current market environment. When the market is good, you can be more aggressive; during choppy times, be more conservative. Always stay rational and avoid being bound by a fixed formula.