Stop using that stop loss.
It’s not for crypto!
Stop loss assumes everything will be the same as when you set the stop loss.
Every trade requires considering all factors. A stop loss only considers a price point without considering
When you do a stop loss, often, it gets triggered when the price bounces back up. So you sell at a loss when bullish. Makes no sense.
If you set a stop loss for a 5% drop in price, and it gets triggered to sell at market price due to a 30% drop in price from a whale selling, you’ll end up losing 31%!
Or if you set a stop limit order to force the sell order to trigger at exactly 5% loss, and the same whale sells you down 30% but a bigger whale buys up the entire order book and the price skyrockets 300%, you still sold at a 5% loss against bullish traffic.
This is like making a promise that you’ll dump your girlfriend if she’s late for dinner.
She’s late for dinner.
So you dump her.
Then you find out she was late because she was buying lingerie for tonight.
Stop losses are not for crypto.
So what do we do? We just don’t sleep.