Why do we need to step on the brakes during trading?

Today, let's talk about how to cut losses and preserve our principal.
Whether you're a veteran or a beginner, no investment will always go up 100%. So, to navigate this uncertain game, always remember: protect your principal. Without it, everything else is meaningless.
The first step to preserving your principal is not to act blindly. Every trade must be carefully considered. The best entry point is actually your stop-loss point. Because when we buy in, we are judging that the price will go up afterward; otherwise, why buy? If the price hasn't broken your buy point, then just hold it. If it breaks your buy point, it means your judgment was wrong. Don't overthink—stop loss immediately. The earlier you cut losses, the more principal you can save.
Some people say, "If I stop loss, it will rebound." Isn't that a loss? Let me use a car analogy to explain why you won't lose.
When the tail lights of a car on the street turn on, there is definitely a potential risk. We all hit the brakes immediately when driving, but in trading, we often let go and do nothing. A good driver avoids accidents, and the same goes for trading—good traders do not lose their principal. Every stop-loss is like stepping on the brakes; a rebound is just luck—someone might let you off. You can be lucky many times, but one accident could be fatal.
So, trading is never about who runs faster, but about who survives longer. $ETH ‌$BTC ‌