A harsh reality: the most common thing new traders say in the contract world is "Hold through this wave of losses and you'll turn things around," then they go all-in in one shot and get wiped out. The crypto space doesn't show mercy; preserving your account always comes before making quick money. Stop-loss might sound like old advice, but it's like a seatbelt—really lifesaving at critical moments.

**Why must you set a stop-loss?**

Black swan events, market crashes, sudden dips—no one can predict these surprises. Instead of gambling on luck, it's better to insure yourself in advance. What's more heartbreaking is human nature—when in floating losses, it's easiest to "lie flat," and small losses turn into huge ones. A stop-loss forces you to calmly exit the position—that's your discipline. There's also a mathematical point to understand: losing 50% requires a 100% gain to break even. The more your principal drops, the harder it is to bounce back. Preserving your capital is the key to the next opportunity.

**Three practical stop-loss methods**

Technical support levels are the most straightforward—identify previous lows, trendlines, or support zones, or simply set a rule that a single loss won't exceed 2%-5% of your total funds. A break below the 20/30-day moving average is also a signal.

Volatility-based stop-loss suits those seeking precision. Use the ATR (Average True Range) indicator, setting "entry position - 1.5 times ATR" as the stop-loss. This helps avoid being swept out by normal market fluctuations.

Time-based stop-loss is a self-imposed constraint—if the price doesn't move as expected after opening a position, even before hitting the stop-loss point, exit. Don't waste opportunity costs on trades with no hope.

**Three common pitfalls**

Pitfall 1: Setting the stop-loss too close, getting shaken out by oscillations. The solution is simple: refer to recent highs and lows, leaving enough room for normal volatility.

Pitfall 2: Moving the stop-loss after being triggered, hoping for a rebound. Don't do that. The stop-loss line is like a high-voltage line—enforce it without negotiation. Lucky thinking will ruin you.

Pitfall 3: Frequent small stop-losses—seems harmless, but adds up to bloodshed. Reflect on your entry quality; in choppy markets, avoid overtrading and reduce ineffective trial and error.

At the end of the day, staying alive is more important than making money. Treat stop-loss as an iron law, choose the right methods to avoid pitfalls, and your account can stand firm in this market.