In this market, many so-called 'expert traders' always emphasize their high win rate, which leads beginners to mistakenly think that stop loss is admitting their failure. But in reality, stop loss is never wrong, but a respect for risk. Truly excellent traders always know when to decisively use stop loss. Think about it, if every stop loss results in a loss of 100U, but every take profit earns 500U, even if you make mistakes in eight out of ten trades, you can still make a profit of 200U. This is the essence of trading: risk-reward ratio, not win rate. And even if the direction is still correct and you know that the market is just a simple pullback, stop loss can still allow you to go long at a lower position and go short at a higher position.
In this market, we are all like crossing a river by feeling the stones. No one can guarantee that every decision is correct. If you make a mistake, it doesn't mean you can't do it, it means you are learning. And the real fatal thing is to resist the order. Resisting the order will only lead you step by step into the abyss, and eventually return to before liberation. Position control and mentality are the cornerstones of success.
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In this market, many so-called 'expert traders' always emphasize their high win rate, which leads beginners to mistakenly think that stop loss is admitting their failure. But in reality, stop loss is never wrong, but a respect for risk. Truly excellent traders always know when to decisively use stop loss. Think about it, if every stop loss results in a loss of 100U, but every take profit earns 500U, even if you make mistakes in eight out of ten trades, you can still make a profit of 200U. This is the essence of trading: risk-reward ratio, not win rate. And even if the direction is still correct and you know that the market is just a simple pullback, stop loss can still allow you to go long at a lower position and go short at a higher position.
In this market, we are all like crossing a river by feeling the stones. No one can guarantee that every decision is correct. If you make a mistake, it doesn't mean you can't do it, it means you are learning. And the real fatal thing is to resist the order. Resisting the order will only lead you step by step into the abyss, and eventually return to before liberation. Position control and mentality are the cornerstones of success.