2026-01-12 16:26:34

Many people consider "small stop-loss with high take-profit" as a standard for professional traders, but this logic is actually a hidden trap in the crypto market.

On the surface, it appears to be about risk control and pursuing excess returns, but in reality, it conceals a mechanism that gradually erodes your account.

**Where is the core issue?**

Small stop-losses are easily triggered frequently, while high take-profits are often out of reach. The ultimate result is small losses that keep happening and no chance for big gains, using extremely unfavorable odds on trades doomed to fail.

Why is a small stop-loss particularly deadly in the crypto world? Because the volatility of cryptocurrencies is inherently high. Daily fluctuations of 1% to 2% are common. If you set your stop-loss within this emotional fluctuation range, you're essentially giving your principal away to market noise. Even more painfully, big players have their eyes on retail traders' tight stop-loss levels, and your small stop-loss just becomes the "harvest" for the big fish.

High take-profit targets are not much better—they don't guarantee big profits, only a low win rate. To achieve +10% or +20% profits, you need to bet on a trending market, but most of the time, the market simply doesn't reach those levels.

**What is a common outcome for beginners?**

Stop-losses of -2% to -3% triggered multiple times a day; take-profits of +10% to +20% rarely hit in a month. Coupled with heavy position sizes, your account either explodes in a quick loss or gets slowly drained.

Experienced traders who survive long in the crypto market do the opposite: they understand that a stop-loss isn't better the smaller it is—there must be logical support; likewise, a take-profit isn't better the larger it is—it must be repeatable. Success depends on stable odds, not on a single miracle.

If you still cling to small stop-losses to gamble on a big market rebound, you'll only fall into emotional chaos and position confusion, ultimately standing on the edge of an inevitable loss.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

6 Likes

Reward
6
3
Repost
Share

Comment

0/400

MerkleTreeHugger

· 9h ago

Damn, really, I used to play and die like this, with small stop-losses being hit so frequently. --- So, not everyone is suited for this strategy. Big players have been waiting for our stop-loss levels for a long time. --- That's why I now prefer to lose 5% rather than be triggered frequently. It really hurts. --- High take-profit targets are really a joke. I waited three months and still didn't hit +20%. --- You're so right. The biggest enemy of small investors is their own panic and those "professional" stop-loss settings.

View OriginalReply0

MidnightGenesis

· 13h ago

On-chain data shows that the tight stop-loss levels are indeed being frequently targeted by large investors, as expected.

View OriginalReply0

SchrodingerWallet

· 13h ago

I've seen this kind of explanation again, honestly the feeling of being wiped out by big players is really deep. Oh my god, every time I just stop loss at -2%, then watch the coin suddenly rally, it's so frustrating. That's why I don't set take profits much now; betting on odds is pointless. Every day I hit stop loss several times, profits can never reach, and the account is slowly being eaten away. Small stop losses sound professional but are actually just giving free gains to the whales, exploiting retail traders' psychology. So my current strategy is to have a very wide stop loss, but it must have a core logic, not just reckless gambling. This is the way to survive long-term—focusing on compound interest rather than single double-ups.

View OriginalReply0