Holding Crypto Swings Through Volatility: When Do You Hold vs Cut?

Crypto swing trading requires a different pain tolerance than forex or equities — 20–30% corrections happen mid-bull market, and holding through them vs cutting is one of the hardest decisions. Here's the scenario that plays out constantly: You enter a swing long at $3,100 on ETH with a stop at $2,850 and a target at $3,800. ETH then drops to $2,920 — within your stop, but only barely. Do you: **A) Hold your original stop.** The setup is still valid. Your stop is placed at a structural level. **B) Cut for a small loss.** The market has shown weakness. Better to re-enter later if the thesis is still intact. **C) Average down.** ETH is even cheaper now — add to the position at $2,920. My approach: If my stop placement was structural (not arbitrary), I hold until the stop is actually hit. If I entered poorly or if the macro environment has materially changed, I'll consider cutting before the stop. Averaging down in crypto is the most dangerous option — it turns a bad trade into an even larger bad trade. How do you handle a swing trade that's moving against you but hasn't hit your stop?