Before opening a position, make sure to set a stop loss.

It is best to establish a set of rational, controllable, standardized, and executable stop loss principles for yourself,

aiming to avoid emotional and chaotic trading due to market fluctuations.

Rational Stop Loss

🚨 Fixed Stop Loss

For example: a maximum loss of 3% per trade, simple and direct.

🚨 Technical Stop Loss

Stop loss when breaking previous lows / breaking previous highs, a commonly used method in technical analysis.

🚨 Trailing Stop Loss

When there are unrealized profits, protect at least 10%, commonly seen in trend trading.

🚨 Volatility Stop Loss

Set stop loss based on the ATR indicator, relatively stable but requires calculation, suitable for advanced traders.

🚨 Time Stop Loss

For example: if the position does not increase after 1 hour / 5 minutes, exit, commonly used in intraday trading.

Irrational Stop Loss

⚠️ Emotional Stop Loss

Driven by emotions, such as panic, anxiety, or mental breakdown leading to chaotic trading.

⚠️ Fearful Stop Loss

Closing positions as soon as seeing paper losses, without giving enough space for fluctuations.

⚠️ Revenge Stop Loss

Due to a loss in the previous trade, impulsively entering and exiting in this trade, becoming entirely unstrategic.

Stop loss is not admitting defeat,

it is saying: "I am willing to pay a small price to control risk."

Trading is like doing business,

if you do not bear risks or invest capital, how can there be stable returns?