don't understand stop loss.

When a trader takes an entry, they set a measurement for both high and low, as well as the middle. For example, if they buy an item at $1, they might buy again at $0.97 with double the quantity, and then again at $0.95 with double the quantity again. They create 5-6 steps like this and double their buy quantity each time.

If the market drops by 10% and then recovers by 2%, the trader will still be in profit. They might sell 60% of their holdings and take a 40% chance. If the market drops again, they'll buy more, following the same pattern. When they finally close their position, they'll be in profit. This is called having a strong mind and trading strategy.

This trading strategy is known as *averaging down* or *martingale strategy*, where the trader increases their position size as the price moves against them, aiming to reduce their average entry price and increase potential profits