This situation is very common; almost everyone who trades short-term has encountered it — just after selling with a stop-loss, turning around to see it shooting up, feeling incredibly frustrated, even questioning oneself: 'Am I stupid? Was the stop-loss wrong?'

Actually, there's no need to get too tangled up; let's clarify the reasoning first.

First, you need to understand: the essence of a stop-loss is not 'guessing price movements', but 'controlling risk'. You set a stop-loss because it fell below your expectations — for example, hitting your preset 3% stop-loss line, or the pattern deteriorated, or the hot spots dispersed. At that moment, following the rules to set a stop-loss is to avoid it continuing to fall by 10% or 20%, trapping you. It’s like wearing a seatbelt when driving; it doesn’t mean an accident will definitely happen, but it can save your life in case something does. You can't think wearing a seatbelt is unnecessary just because nothing happened this time.

As for the price rising after a stop-loss, at its core, it’s a 'probability issue'. Short-term trading is essentially betting on high-probability events; there's no 100% accuracy. By following the rules to set stop-losses, you aim to seize opportunities to 'make small profits at the right time and lose less when wrong', profiting over the long term through win rates. Occasionally, experiencing a rise after a stop-loss is like occasionally missing the target when shooting; it’s perfectly normal.

What should we do when we encounter this situation?

First, accept the 'missed opportunity'. Short-term trading emphasizes 'detachment'; one trade is over, and that’s it. When you set a stop-loss, you have already cut off the risk, and the subsequent rise has nothing to do with you. Getting hung up on 'how much I could have earned' is just adding to your own frustration. Consider it a 'tuition fee' paid for following the rules; it's better than holding on and eventually losing a lot of money.

Second, review the situation, but don’t get into a contest. Check if this stop-loss level was set reasonably; for instance, was it too sensitive? Did you mistake normal fluctuations for a breakdown? Or was the selling point influenced by emotions? For example, panicking and stopping out too early. Reviewing is to optimize the rules, not to regret 'I shouldn’t have sold back then'.

Third, I really think you can get back in, but you have to follow the new rules. If it goes up and the pattern looks better, the hot spots are clearer, and it meets your entry conditions, then buy in again. But remember, this is a 'new trade', not to make up for regrets from the previous one; you should still set stop-losses. Don't blindly chase high prices just because you 'missed out last time'.

What’s most frightening is giving up on stop-losses after a few such situations. I've seen people who, because 'it rose after the last stop-loss', stubbornly hold on when it drops next time, resulting in losses growing from 3% to 30%, completely trapped. The core of short-term trading is 'being alive gives you opportunities'; stop-losses are the baseline that keeps you alive.

Simply put, short-term trading is like guerrilla warfare; if you can win, then fight, but if you can’t, then run. After running away, if you find the enemy counterattacked successfully, don’t look back to fight; just regroup and prepare for the next battle. Fixating on past missed opportunities will only affect your judgment next time.