Regarding capital preservation, liquidation, and losses:

Capital preservation is the core bottom line of trading. If you can't even protect your principal, all profits are just empty talk. Liquidation is a common misconception among beginners who lack risk control.

The core logic of trading is very clear: first determine the trend direction, then enter based on key support and resistance levels, strictly set stop-losses, and fundamentally eliminate the risk of liquidation.

Choosing the right entry points at key positions allows for both offensive and defensive strategies. Even if the market moves against expectations, only a small, controllable stop-loss will be triggered, preventing large-scale liquidation.

Therefore, precise trend direction and reasonable entry points complement each other and are indispensable. This is not only the key to controlling risk but also the foundation for stable trading.