Yes, you read that right—whale trackers say stop-loss (SL) is wrong! Maybe you’re wrong, or maybe you’ve been misinformed by those who want your money! You know what I’m talking about!
Let’s understand this deeper. We’re all placing stop-loss (SL) to protect our total assets or minimize our losses. But now, tell me, what is isolated leverage and cross leverage?
When setting up leverage, you’ll notice it defaults to “cross” mode, which you can switch to “isolated.” Cross mode means all of your futures wallet balance will be used for the position. Isolated mode, on the other hand, uses only the margin you select for that specific position.
Now, look closer at isolated mode—it acts like a stop-loss, right? If you’re okay with a $30 loss, you can set an SL at $30, which is the same as having a $30 margin with isolated leverage. Both achieve the same outcome! If SL is hit at a $30 loss, or if the trade fails and you lose $30 in isolated mode, they essentially serve the same function.
So, you might wonder, why use SL when isolating margin achieves the same result? Read this again—seriously, read it again!
There’s a huge psychological game at play here! SL is portrayed as a loss reducer, giving you a sense of security. You trade confidently, believing SL will save you if things go south. But if you used isolated mode and suffered the same loss, you’d feel like you failed in the trade itself, maybe even hate it. It’s a subtle trick to make losses feel normal and manageable!
So, what is SL, and what’s its actual purpose? SL is technical analysis tool. We use SL when we predict an uptrend; if the market breaks a certain level, it indicates a further downturn, so we set SL at that point. It’s part of technical analysis; if the market direction shifts, SL exits the trade accordingly.
To minimize losses, we should consider isolated leverage trades—they signal when our trades or strategies are failing. But when SL is used, we feel relieved that our asset is “saved.” Don’t close your eyes to this! They show you what they want you to see. Open your eyes and understand: the whole market works on someone’s loss becoming someone else’s gain.
Stay educated—even one penny lost feeds those controlling the game. Open your eyes and understand the basics!
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