During lunch, I chat with friends again about stop-loss strategies. He said that recently, because he didn’t set a stop-loss, one order got stuck at 20%. Now it’s “frozen” for good.
When I first started out, I was like that too. I thought that setting a stop-loss really meant losing money. As long as you don’t sell, there’s still hope that the price will turn around and rise again. So what happened in the end? Usually, a small loss keeps dragging on, becoming a bigger loss; then a big loss turns into a deep deadlock. Finally, you don’t even want to look anymore. I gave that behavior a name: “value investing.”
Later, after suffering enough losses, I finally understood: stop-loss isn’t surrender—it’s to keep yourself alive.
Think about it: if you make ten trades—being wrong five times and right five times—then as long as every time you’re wrong the loss is small, and every time you’re right the profit is large, the overall result can still be profitable. But if you don’t use stop-loss, then just one time you’re wrong could wipe out everything you gained from the previous nine times.
In trading, survival matters more than anything else.
Many people like to see how many times other people can make money, and think that’s what being good means. But that’s not true. The truly great ones are the people who are still here after ten years, after eight years. They may not make money as fast as that, and it’s also very rare for there to be overnight legend-level “turnaround” stories—but they move steadily, and they go far.
Fast and steady—forever—is a question of choice.
Choose fast, and you might be dazzling for a moment;
Choose steady, and that’s how you reach the end.
$BTC #BinanceSquare #BTC #TradingMindsetSharing
When I first started out, I was like that too. I thought that setting a stop-loss really meant losing money. As long as you don’t sell, there’s still hope that the price will turn around and rise again. So what happened in the end? Usually, a small loss keeps dragging on, becoming a bigger loss; then a big loss turns into a deep deadlock. Finally, you don’t even want to look anymore. I gave that behavior a name: “value investing.”
Later, after suffering enough losses, I finally understood: stop-loss isn’t surrender—it’s to keep yourself alive.
Think about it: if you make ten trades—being wrong five times and right five times—then as long as every time you’re wrong the loss is small, and every time you’re right the profit is large, the overall result can still be profitable. But if you don’t use stop-loss, then just one time you’re wrong could wipe out everything you gained from the previous nine times.
In trading, survival matters more than anything else.
Many people like to see how many times other people can make money, and think that’s what being good means. But that’s not true. The truly great ones are the people who are still here after ten years, after eight years. They may not make money as fast as that, and it’s also very rare for there to be overnight legend-level “turnaround” stories—but they move steadily, and they go far.
Fast and steady—forever—is a question of choice.
Choose fast, and you might be dazzling for a moment;
Choose steady, and that’s how you reach the end.
$BTC #BinanceSquare #BTC #TradingMindsetSharing
