The crypto assets market has once again entered a period of turmoil, with the longer defense lines facing severe tests. Although the first defense line has temporarily received support, the decline has become more intense after today's rebound, threatening the second defense line. The third defense line is in jeopardy, as mainstream tokens represented by Bitcoin have already fallen below the expected trend line.

In the face of this situation, investors can't help but worry: will this round of decline continue? If the third line of defense is breached and there is no rebound, even small positions need to consider stop-loss. Although there isn't much capital currently trapped, continuing to hold on stubbornly is not a wise move. If we indeed enter a downtrend, the consequences could be even more severe.

It is common to have profits and losses in trading, and the key lies in setting a reasonable stop-loss point. Taking the current market situation as an example, if entering the market at the 4030 position, one should consider a stop-loss exit around 3980. Although there may be cases of temporary price piercing followed by a rebound, based on personal trading strategies, the position usually cannot withstand such drastic fluctuations. If it rebounds back, that would be good, but if it does not rebound, according to the usual position of 1000-2000 USDT, a single piercing could lead to losses of thousands or even tens of thousands of USDT.

Not setting stop-loss may lead to escalating losses, from 2000 USDT to 5000 USDT, then to 10000 USDT or even 20000 USDT. Recently, an investor was trapped from 4680 all the way down to 4300 before setting a stop-loss, ultimately incurring a loss of about 30000 USDT, wiping out a month's profit in just a few days.

Therefore, it is crucial to remain rational during trading. When it's time to stop loss, one must decisively cut losses; small losses can be recovered in the future, but a significant loss will put immense pressure on subsequent operations. Whether it's spot or contract trading, risk management is always the key to victory.