In the crypto world, the pain brought by stop loss in Futures Trading is a common experience shared by many traders. This pain often involves not just financial loss, but also psychological struggles and self-doubt. Here are some key points and coping suggestions that may help you better face this predicament:



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### **1. Why is stop loss so painful?**
- **Loss Aversion**: Humans are inherently more sensitive to losses than to gains. For the same amount of money, the pain from a loss may be more than twice the pleasure from a gain.
- **The illusion of "just wait a bit longer to break even"**: When the market is highly volatile, many people will doubt that their stop loss was too early, fantasizing about a market reversal, which ultimately leads to greater losses.
- **Self-Denial**: A stop loss means acknowledging a judgment error, which can be a significant blow to confidence, especially after consecutive stop losses, making one prone to emotional trading.

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### **2. Typical Scenarios of Stop Loss Pain**
- **Just stopped loss and then rebounded**: The price quickly reversed after the stop loss, feeling "targeted" by the market.
- **Frequent stop loss**: Continuously swept out in a volatile market, the principal is being worn down little by little.
- **Excessive Leverage Amplification**: Small fluctuations under high leverage trigger stop loss, leaving no breathing room.

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### **3. How to alleviate the pain of stop loss?**
#### **(1) Reshaping the Understanding of Stop Loss**
- Stop loss is the cost of trading, just like opening a store requires paying rent. No one can predict the market 100%, and stop loss is an essential tool for survival.
- A good trader is not "always right", but rather "cut losses and let profits run".

#### **(2) Optimize Stop Loss Strategy**
- **Technical stop loss**: Set based on support/resistance, moving averages, ATR, and other indicators, rather than randomly guessing.
- **Partial Stop Loss**: Avoid a full position stop loss at once; you can exit in steps (for example, close half at a break and set a wider stop loss for the remaining portion).
- **Dynamic Stop Loss**: Move the stop loss up after making a profit to protect the principal and avoid turning profits into losses.

#### **(3) Control Position and Leverage**
- **Single loss does not exceed 1-2% of the principal**: This way, even if you have a consecutive stop loss 10 times, the loss of the principal is controlled within 20%.
- **Reduce Leverage**: High leverage significantly compresses your margin for error; 3-5 times leverage is easier to hold positions than 20 times.

#### **(4) Psychological Training**
- **Write a Trading Journal**: Record the reasons for each stop loss, distinguishing between "reasonable stop loss" and "emotional stop loss".
- **Simulated Backtesting**: Backtest historical data to verify whether your stop loss strategy is effective in the long term.
- **Accept Imperfection**: The market is random, and even correct decisions may be stopped out due to short-term fluctuations.

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### **4. Beware of these dangerous mindsets**
- **"Holding a Position" Instead of Stop Loss**: The crypto world often experiences extreme market conditions, and holding a position once may lead to liquidation.
- **Frequent modifications of stop loss**: Constantly widening the stop loss out of fear of being stopped out, ultimately leading to loss of control.
- **Revenge Trading**: Eager to recover losses after a stop loss, which instead expands the losses.

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### **5. The last suggestion**
If stop loss keeps you awake at night and anxious for a long time, it might be that your position exceeds your psychological tolerance. It may be wise to pause trading and reassess your risk preference. Remember: **surviving is more important than making money**, there are always opportunities in the crypto world, but you only have one capital.

The essence of trading is a probability game, and stop loss is part of the rules. When you can calmly execute a stop loss, you have already surpassed 80% of Futures Trading players.
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