In the trading process, strategies for dealing with losses: if it is a small single loss, generally speaking, its impact on daily life is minimal. Choosing to cut losses at this point does not mean that the trading decision was a mistake, but rather to effectively prevent the loss from continuing to expand, especially to avoid falling into an uncontrollable situation. It is important to understand that the risks brought by blind operations due to emotional high are far greater than the risks of timely loss cutting.

If you have already suffered a large loss, what is most indispensable at this moment is patience, and the key to patience lies in reasonable planning. At this point, a difficulty comparison is necessary: on one hand, striving for a quick recovery; on the other hand, being willing to spend more time to steadily achieve the goal. Consider carefully which method is more difficult to achieve, or think about whether the statistical probabilities of achieving these two methods are the same. Once you understand these issues, you will naturally have the answer in your mind.

Please believe that this is merely a bad day, not a bad life. Through reasonable planning, things can become easier to achieve, just as the ancients often said, 'Preparation leads to success, while lack of preparation leads to failure.' Upholding a long-term trading philosophy does not mean pursuing geometric growth of funds in a short period of time, but rather choosing to demonstrate one’s advantages fully in probabilities through repeated victories over a longer time span.

You will find that the norm in trading is often small losses and small gains, with occasional large profits, and significant losses will not occur. In this way, the sustainability of trading is stronger and has a high degree of repeatability. Once you clearly understand the principles behind all this, you will be able to act decisively and without hesitation when opening positions, and maintain your positions firmly and without cowardice.