2026-04-11 10:42:57

There's no such thing as the best stop-loss, only the most suitable one.

People with a personality that can withstand large fluctuations and prefer big trends are suited for large stop-losses; those who seek stable rhythm and don't want big ups and downs are better off with small stop-losses.
This is one of the most perplexing issues for many contract traders. In fact, there is no absolute standard, only what fits oneself.
The advantage of a large stop-loss is a bigger margin for error, allowing you to withstand normal market shakeouts and fluctuations, making it easier to capture the full trend. But the drawbacks are also obvious: once you misjudge the direction, a single trade can result in significant losses, causing psychological pressure and potentially affecting subsequent operations.
Small stop-losses are the opposite; each loss is limited, keeping the mindset relaxed. Even if you make a mistake, you can quickly cut losses and try again. But the biggest problem is being frequently stopped out by the market, only for the trend to resume immediately after, disrupting the rhythm, increasing frustration, and gradually eroding the capital.
Many people fantasize about using small stop-losses to chase big profits, thinking the risk is low and the reward high, but in reality, stop-losses are constantly triggered, and the capital slowly diminishes, causing the mindset to collapse first.

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PrincessQingyue

· 3h ago

Many people have fought hard in the bull market for a year, with their accounts soaring all the way, and even started dreaming of financial freedom. But when the bear market hits, profits are wiped out in three months, principal shrinks back, and some even go into debt. This is not bad luck, but rather the same trap most people fall into — losing control of their emotions.
I'm not an expert either; the reason I can stay in the market long-term is fundamentally because I stick to three "counter-human" things.
First, restrain greed. The better the market, the calmer you need to be. While others focus on doubling their money, I only focus on "locking in gains." The money you earn is only truly yours if you hold onto it. Those who want to eat a big meal in one bite often end up with nothing but bones.
Second, control your actions. There are many opportunities in the market, but not every time is the right time to act. Many people don't make wrong judgments; they just trade too frequently, driven by emotions. Stable people mostly spend their time "doing nothing."
Third, endure the cycle. The real difficulty isn't losing money, but the long periods of market indifference and stagnation. When there's no rhythm, no boost in returns, and doubts start to creep in. But it is precisely during these times that you decide whether you have bullets left or the right mindset for the next round.

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