The entry point is inaccurate; no matter how much you set your stop loss, it won't help.
To be honest: many people think the fundamental reason for their losses is "the stop loss wasn't set properly."
But the truth is: an inaccurate entry point is the source of your losses.
The direction isn't wrong, but entering too early causes you to get shaken out; the trend hasn't formed, and you rush in, getting harvested back and forth; the signal hasn't appeared, and you trade based on feelings, hitting stop losses everywhere.
The root cause isn't an incorrect stop loss, but rather: you simply lack the patience to wait for the real "entry signal!"
So what counts as an "entry signal"? It's not feelings, not emotions, not random guessing,
but three confirmations given by the market:
First, a strong volume at key levels; opening a position without volume? That's just giving away money.
Second, the K-line pattern shows a valid reversal or breakout structure; if there's not even a solid breakthrough, why rush to enter? It won't hold.
Third, confirmation of a pullback in line with the trend direction.
Going long? At least there should be a valid pullback stabilization.
Going short? At the very least, you need to see a break that doesn’t bounce back up.
My iron rule: without a signal, let the account stay dead, eyes open, hands still.
If the signal isn't strong enough, it's better to miss out than to trade recklessly.
Wait until the signal is clear enough before opening a position, and increase the position gradually.
To put it simply, the precision of the entry point is the core determinant of whether your account is stable.
Sometimes, it's not your technique that causes losses; it's your lack of patience.
What do I usually use to judge signals?
How do I set key points?
What positions allow for "increasing positions," and which ones can only handle small trials?
