The bloodsucking effect of the altcoin market is becoming increasingly apparent, especially during periods of extreme volatility. Looking back at the flow of funds in the meme sector, it’s like a new script every day; the speed at which funds rotate is astonishing.

Recently, many friends who have privately messaged me have been asking, "What should I do if I’m stuck with XX coin?" In fact, many people didn’t set a stop-loss when opening positions. Once the market reverses, they are instantly trapped, and they may even be forced to liquidate. The stop-loss price is essentially the liquidation price; if you’re lucky, you might barely hold on and see a rebound, but if you’re unlucky, you will indeed have to face the consequences of liquidation.

The real problem is that many people do not understand the risks of contracts and are unwilling to set stop-loss orders.

Everyone always thinks that if they are trapped, perhaps holding on a bit longer might allow them to break even. Once or twice they may escape by luck, but sooner or later, there will be a time when it completely backfires; this is a lesson I have personally experienced.

So, here’s a piece of advice for all friends trading contracts: open positions within your capacity, and never ignore the setting of stop-loss orders!

Set stop-loss orders, set stop-loss orders, set stop-loss orders; this is the most basic form of risk management.