The Stop-Loss Iron Rule for Trading Experts:

Avoiding the Core Principle of Liquidation: "Why do I make countless profits but lose everything once?"

The answer is hard to hear: Most people lose because they don't know how to cut losses, while experts win by treating stop-losses as a lifeline.

Trading is a game of probability; stop-losses are a necessary cost of participating in the market—accepting small losses allows you to avoid large losses and survive to see opportunities for profit.

The consensus among top traders is: "Stop-loss is not about cutting meat; it’s a talisman for preserving strength."

Many fall into the trap: looking at daily trading but setting very small stop-losses, which essentially uses long-term logic for short-term operations, ultimately getting shaken out by volatility.

There is no unified standard for stop-loss; the key is to match the trading level, market targets, and risk preferences, with the core being to keep losses controllable.

Here are 5 common stop-loss methods used by experts:

1. Maximum Amount Stop-Loss (Beginner's First Choice) A single loss should not exceed 1%-2% of total capital, for example, for a 100,000 account, a single stop-loss ≤ 1,000 yuan, locking in risk from the source to avoid substantial damage.

2. ATR Dynamic Stop-Loss (Essential for Professionals) Adjust stop-loss based on the average volatility of the asset; if volatility is high, increase stop-loss and reduce position size; if volatility is low, decrease stop-loss and increase position size, aligning with market rhythm and reducing the risk of being swept out by false breakouts.

3. Technical Stop-Loss (Use with Caution) Set stop-loss just outside support/resistance levels, but support and resistance are highly subjective, so beginners should not rely solely on this method and are advised to combine it with other methods.

4. Tiered Stop-Loss (Applicable in Volatile Markets) When falling to a preset range, first reduce the position by 30%-50%; if it continues to fall, close the position entirely, balancing risk and reversal opportunities.

5. Trailing Stop-Loss (Key to Big Profits) Gradually move the stop-loss up after making profits to lock in existing gains, avoiding "making money and then losing it back," achieving small losses with big gains. Ultimately, the core of stop-loss is "daring to execute." In the end, trading is about controlling human nature; strictly adhering to stop-loss discipline is essential for long-term survival in the market.