Yes, you read that right—whale watchers say stop losses (SLs) are wrong! Maybe you are wrong, or maybe you have been misinformed by people who want your money! You know what I'm talking about!

Let’s dig deeper into this. We all place stop loss (SL) orders to protect our overall assets or minimize losses. But now, tell me what is isolated leverage and cross leverage?

When setting up leverage, you will see that it defaults to “cross” mode, you can switch to “isolated” mode. Cross mode means that your entire futures wallet balance will be used for the position. Isolated mode, on the other hand, only uses the margin you choose for that particular position.

Now, let’s take a closer look at isolation mode—it works just like a stop loss, right? If you accept a loss of $30, you can set the SL at $30, which is similar to having a margin of $30 with isolation leverage. They both achieve the same result! If the SL loses $30 or if the trade fails and you lose $30 in isolation mode, they essentially do the same thing.

So, you might be wondering, why use SL when isolated amplitude achieves the same result? Read that again—seriously, read that again!

There is a big psychological game going on here! SL is described as a loss-cutting tool, giving you a sense of security. You trade confidently, believing that SL will save you if things go wrong. But if you use isolation mode and suffer the same loss, you will feel like you have failed at the trade itself, maybe even hate it. It is a subtle trick to make losses seem normal and manageable!

So, what is SL and what is its real purpose? SL is a 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 place SL at that point. It is part of technical analysis; if the market direction changes, SL will exit the trade accordingly.

To minimize losses, we should consider leverage trading separately—they signal when our trade or strategy fails. But when using SL, we feel relieved that our assets are “saved”. Don’t close your eyes! They show you what they want you to see. Open your eyes and understand: the whole market works in such a way that someone’s loss becomes someone else’s gain.

Always be learning—even losing a penny feeds the people who control the game. Open your eyes and understand the basics!