Newcomers to crypto trading are often hijacked by a seemingly professional piece of advice—"Set small stop-losses, large take-profits." It sounds rigorous and scientific, almost like a golden rule of risk control, but honestly, this logic has trapped too many people and can be considered a silent killer of accounts.

Why is this statement so dangerous? The answer lies in the details.

Setting very narrow stop-losses means that a market fluctuation of just 1%~2% can wipe you out. Extending the take-profit target too far makes the probability of reaching that profit level frighteningly low. The result is a vicious cycle—small daily losses, never making big gains.

You might think you're precisely controlling risk and waiting for big opportunities, but in reality, you're using the worst odds to fail frequently. This strategy is even more harmful in the crypto world. Market volatility here is daily; those 1%~2% oscillations are normal noise. Using this as your stop-loss level is essentially handing your chips directly to the market.

Even more painfully, smart capital doesn't bother to predict the market direction. They focus on one thing—the areas where stop-loss orders are most concentrated. Small stop-losses? That’s an ideal hunting ground.

Now, look at high take-profit targets. Many traders believe that setting a higher take-profit means earning more, but the truth is quite the opposite. The higher the take-profit, the lower your actual win rate. You're not waiting for a big trend but for low-probability events. A common scenario is this: within a day, your -2%, -3% stop-losses get hit multiple times, while the +10%, +20% take-profit orders never get triggered all month.

If you also take on a moderate position size, your account won't blow up instantly but will be gradually worn down over time.

So, how do traders who last longer actually do it? They go against the grain. Stop-losses are not about being as small as possible but about placing them where there is logical support. Take-profits are not about gambling on luck but about setting levels that can be repeatedly realized.

Trading is never about single trades turning the tide but about the overall odds system. Obsessing over tiny stop-losses and dreaming of a big market reversal will only make your emotions more chaotic and your operations more error-prone, ultimately trapping you in parameter settings destined for losses.