Trading is about playing by the rules; stopping losses is more important than making profits.
When trading, don't just set a stop-loss on the software and think you're done; you need to truly have that mindset.
Before placing an order, think: "What is the maximum I can lose on this trade?" When the price hits that level, act decisively; don’t fall in love with the market.
There’s a powerful strategy when looking at candlesticks—triple bottom: when the price hits the same level three times and fails to drop further, with the lower shadow resembling a golden hoop stick firmly in place, and the last large bullish candle engulfs the bearish candles, this signals that the bulls are ready to counterattack.
But remember, no matter how beautiful the formation, it must come with a stop-loss.
The truth can be summed up in two sentences:
All liquidations start with "let's hold on a bit longer"; a stop-loss is not giving up, it’s preserving your capital.
What truly allows you to turn your situation around is not the perfect entry but having the courage to cut losses when wrong and to hold on when right.
The market is like a river; those who drown are often those who can swim but overestimate themselves.
