$ETH "No one likes losses, but we must learn how to stay calm in the face of losses."
This is a truth I have deeply realized after experiencing countless ups and downs.
People who trade must understand that losses are a part of trading; stop-losses are not to be feared, but what truly causes you to lose control is a mistake in position management.
$BNB The key is: how to manage losses.
1. Stop-loss is the norm in trading.
No one can avoid losses; the key is how to reduce them through stop-losses and maintain psychological balance.
A stop-loss itself does not make you panic, but when your position is too heavy and losses exceed expectations, that is when you will experience emotional fluctuations and make wrong decisions.
$SOL 2. Clarify your strategy before opening a position.
Before opening a position, you must determine a clear strategy and expectations, including:
Basis for opening: When choosing technical signals, there must be a basis, not just a guess.
Stop-loss line: Set key support or resistance levels, and control the maximum loss range.
Expected target: Set a profit-taking interval and clarify the target.
Worst-case scenario: Ensure that position management is reasonable and set the worst-case scenario you can accept.
3. Execution: Once you open a position, you must execute mechanically.
Once you enter a trade, your inner expectations will affect your judgment.
You may consciously or unconsciously ignore counter-signals and overly focus on positive signals.
Therefore, after opening a position, do not focus too much on the holding; remain calm and analyze, acting according to established rules.
4. The wisdom of profit-taking.
Many people prefer "open profit-taking," meaning holding a position until the last moment, but this does not suit all positions.
Every market trend has an end, and each person can only earn money within their cognitive range.
Many times, we miss the opportunity to take profits due to greed, turning profits into losses; this double blow makes it hard to recover.
I recommend adopting phased profit-taking or keeping a base position to ensure execution according to the expectations set when opening a position, with any excess seen as unexpected gain, not worth being greedy.
Summary: How much you can earn is determined by your plan, position management, and execution ability.
As long as you can control your emotions and strictly implement your strategy, you can stand firm in any market.
The market is always there, but the rhythm waits for no one.
