What truly kills retail investors is not the market, but the inability to cut losses.
In this extremely volatile market with a very low tolerance for error, those who can last are not the "frequent traders", but those who can decisively cut losses and remain calm. Most losses are not technical issues, but rather a mindset out of control, a refusal to admit mistakes fueled by emotions.
Many people do not lack the ability to cut losses; rather, they are trapped by three kinds of obsessions.
They want to wait for a rebound, want to wait to break even, want to wait for a fantasy of "maybe it will rise".
In the end, small losses turn into large losses, and large losses simply explode.
The reason I have been able to walk out of chaos over the years is not because of how strong my skills are, but because of strict trading discipline:
If I don't see familiar structures, I don't act; if I don't see resonance signals, I don't act; if my emotions are offline, I absolutely do not act.
The market does not reward diligence; it rewards restraint.
The following are fundamental principles that have been repeatedly verified:
1. Prioritize night trading, be cautious during the day.
There is a lot of noise during the day and frequent false moves; night trading has more realistic volume, making it easier to see the main force's rhythm.
2. Trading should be based on signals, not on feelings.
At least two indicators must resonate, such as MACD trend + breakout of the middle Bollinger band;
Without signals, maintain a cash position.
3. Stop-loss must be "preemptive" and resolute enough.
Move stop-loss up when locking in profits, set hard stop-loss before entering, keep losses controllable, and prevent profits from being given back.
4. The level of the chart must switch.
For short-term trades, look at the 1-hour chart to grasp rhythm; if the market is stagnant, switch to the 4-hour chart to confirm the trend.
Do not bottom fish unless at support, do not chase highs unless breaking resistance.
Stop-loss is not failure; it is the protection of the qualification to continue making the next trade.
In this market, surviving is the primary logic.
Whether you can go further depends on one thing:
Can you subtract from your obsessions at critical moments and remain loyal to the rules?
When you can achieve "controllable losses and orderly gains", the market will truly become predictable.
The rest is just a matter of compounding over time.
