Btc

The Art of Stop-Loss: Not Failure, but Victory of Discipline

To most traders, stop-loss means "wrong direction," "failure," "getting hit by the market."

But to seasoned traders, stop-loss has only one meaning: the execution of risk control.

1. Why Do People Reluctant to Use Stop-Loss?

Because stop-loss brings threefold pain:

Financial loss;
Self-doubt;
Psychological cost of admitting mistakes.

Thus, people tend to "hold on," hoping the market gives them an exit. Unfortunately, the market never pays for emotions.

2. Stop-Loss Must Be Set Before Entry

Any trade where stop-loss is decided after entry is essentially gambling.

Practical Principles:

Before entering, clearly define "where this trade goes wrong";
Once the price hits the point where the logic breaks down, exit immediately.
Stop-loss is not a technical issue—it's an execution issue.

3. Fixed Stop-Loss vs. Logical Stop-Loss

Fixed stop-loss: Suitable for beginners, simple and direct;
Logical stop-loss: Based on structure, trend, and key levels.
Regardless of the method, the core principle remains the same: stop-loss must be objective, not driven by emotion.

4. Treat Stop-Loss as a Cost

Top traders have long regarded stop-loss as an operational cost. Just as a business must pay rent and salaries, stop-loss is a necessary expense in trading. Only when you no longer equate stop-loss with failure can your account truly stabilize.

Stop-loss is not surrender to the market—it's commitment to discipline. Only those who can stop-loss are qualified to talk about long-term profitability. Good night, may every stop-loss you make protect your future self.

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