Happy New Year
#2026 , wishing you all the best !!!! 🥂
The market reminds us that every trader should set proper stop-losses. Capital is your only resource to survive; here are some tips for everyone:
01 Profits only truly belong to you once they are in your pocket
I’ve seen too many people, including myself, fixate on the “highest point” on the chart, as if not selling at the top is a failure. And what’s the result? During market fluctuations, unrealized gains vanish like bubbles, turning into nothing in the blink of an eye.
Remember, the market’s greatest skill is punishing greed. I now strictly follow three rules:
A 10% increase should tighten your nerves. When the price falls back to your cost line, don’t fantasize, don’t hesitate—liquidate immediately. If you don’t lose on this trade, it’s a win; preserving your capital is the key to the next round.
A 20% increase requires quick thinking. You must force yourself to realize at least half of your profits. For the remaining position, raise your stop-loss to the cost price, letting profits run freely. Even if it doubles again later, don’t be envious—you're already a winner. Making more or less is just the market’s reward.
A 30% increase demands “clenching” your resolve. At this point, at least half of the profits should be solidly realized. Don’t guess where the top is; the top is created by exiting, not guessed. Opening a position is just the threshold; closing it is true mastery.
Real experts are not those who earn the most on a single trade, but those who can steadily pocket every bit of profit.
02 Cutting losses quickly; stop-loss is your lifeline
This has saved me at least three times. Holding onto hope during losses is the beginning of account death. I’ve seen a friend lose from 500,000 to zero, desperately trying to recover by adding more, only to see the hole grow bigger, and finally, over three million evaporated overnight. That silent calm over the phone was more suffocating than any scream.
My bottom line is: any trade that drops 15% must be stopped out unconditionally. Someone might ask, “What if it rebounds right after I cut?” I tell you, that only shows your timing was wrong. The market is never short of opportunities; what’s lacking is the ability to preserve your capital. A deep loss that isn’t cut often takes ten successful trades to recover. Holding on blindly usually results in liquidation, not a rebound.
Remember, trading without a stop-loss isn’t investing—it’s gambling with your life. Set your stop-loss as a muscle memory, as natural as buckling your seatbelt when driving.
03 Selling too early isn’t shameful; not daring to buy back is foolish
This is an advanced lesson against human nature. When you take profits as planned, but the price continues to rise, everyone has experienced the regret of “selling too early.” But the difference between experts and ordinary traders is in what they do next.
If the price pulls back to your original sell point, and your logic for buying remains unchanged, then buy back boldly. Don’t worry about losing face—this way, your cost basis stays the same, but your account gains more flexible cash flow.
More importantly, even if you hesitate and the price rebounds to your sell price, you should grit your teeth and buy back. Many people feel distressed about the small transaction fee or spread, but compared to the loss of missing out on a trend entirely, this cost is negligible. The value of discipline far exceeds the difference in one or two trades.
In this market, those who survive are not the smartest, but those who understand “fear” best. Don’t always dream of perfectly bottoming out or topping out—that’s the work of gods. We ordinary people can only engrain discipline into our bones and turn risk control into an instinct.
Markets are always there, but your capital isn’t necessarily. I hope these three heartfelt truths, earned through blood and tears, can serve as a small lamp on your trading journey. If you find them useful, feel free to follow me, and we’ll talk more about how to survive longer and longer in this brutal market. Lastly, I wish everyone a prosperous new year in the trading market ✌✌✌✌✌✌✌✌✌✌✌
