Trading Philosophy: No one likes to lose, but we must learn how to lose.
Those who trade must understand: losses cannot be completely avoided, but you can control how you lose.
Stop-loss is not the problem; uncontrolled positions are.
What causes your emotional collapse is never the stop-loss itself, but rather **unexpected losses.
Set a strategy before entering a trade, and mechanically execute after entering.**
Unless the market shows an absolute deviation signal, decisions made while holding positions are often less rational than when not holding.
Why do we lose rationality after entering a position?
- You will weaken the reverse signals and strengthen the forward signals.
- Internal expectations skew your stance, leading to incorrect judgments.
Four Major Principles of Entering a Trade:
1️⃣ Basis for entering (clear technical/fundamental signals)
2️⃣ Stop-loss line (key support/resistance levels)
3️⃣ Expected target (profit-taking range)
4️⃣ Worst-case scenario (position management, the loss you can tolerate)
Regarding profit-taking: Don't let greed destroy your profits.
Many people like 'open profit-taking', but the market will eventually end, and you can only earn the money within your understanding.
- Stage profit-taking (partial closures)
- Retain a core position (let profits run but protect most of your gains)
- Profits exceeding expectations are surprises, not the norm.
💥 Execute strategy > make ad-hoc decisions.
The market will not always move according to your expectations, but discipline can help you survive in the long run.