The market fluctuated greatly from last night to today, and many people have their orders stuck. Let's talk about stop-loss in trading!
In trading, if you cannot correctly assess the stop-loss in your trades, you won't be able to trade well, let alone achieve stable profits!
This year marks my ninth year in trading, and I have never seen any big player who is always profitable without fail!
Since there are losses, how do we face losses and handle losing positions?
Technical skills + mindset + position management + trading system = 4 essential elements for stable profits.
On a technical level, technical analysis has never been 100%. If there were a technical signal or indicator that could be considered a 100% technical reference, then there would be no one who has lost in trading!
In trading, the only thing you can be certain of is your position, which is your principal!
What is your position size? 100k is 100k, 1 million is 1 million! When facing floating losses on your positions, whether to average down, which gives your price a better advantage, or to reduce your position while averaging down, or to take a complete stop-loss, the way you handle this involves your prediction of the upcoming trend and your tolerance for your position's capital!
If you stop-loss, then this part of your capital is definitely lost in this trade! Since you are stopping out, whether the market comes back or not, you must calmly accept your stop-loss. The only thing to fear is regretting this and regretting that! Immersed in regret can affect your subsequent trading!
If there is no stop-loss, there are two outcomes:
First, the market returns, and you may take a profit.
Second, the market does not return; can you accept this loss of capital?
If you continue holding without a stop-loss, be prepared for the possibility that the market may not return, and if it doesn't, you could end up losing more than before! Can you accept the amount of loss on your held positions without regret?
So, in trading, it ultimately comes down to your mindset: not being greedy and not being fearful is the mindset that needs to be cultivated on the trading journey!
Stop-loss is meant for better take-profit (not doing stop-loss well can lead to significant losses or liquidation in the end).
Profits cover losses, and what remains is profit! Don't let momentary gains or losses affect your subsequent trades; as long as the principal is still there, there will always be opportunities!
Small profits + small losses + occasional big profits + never large losses = stable profits.
Let's encourage each other! 😀
