No one can escape losing money in trading, the key is how to lose with dignity. $COMMON holders should all understand this principle.

Stop-loss, to put it simply, is the basic skill of trading. What really breaks people down is never the stop-loss itself, but rather a complete mess in position management. When losses exceed your expected range, that sense of panic sets in.

So what's the main point? You must think things through and make a plan before entering a trade, and then stick to it—don’t change your mind at the last minute. If the market hasn’t deviated significantly from your initial judgment, just follow the plan, because once you have a position, you’re no longer objective.

Put it this way: when you’re holding a position, your mindset naturally becomes biased. At this point, you may ignore signals that go against your position, while signals in your favor become amplified tenfold. This is the psychological trap of holding a position.

Do your homework thoroughly before opening a position, and make sure your reasoning is clear and strong. After entering the trade, instead of staring at the candlestick chart all the time, it’s better to periodically check for new signals.

There are four iron rules for entering a trade:
1. Enter strictly based on technical signals.
2. Set stop-losses at key support or resistance levels.
3. Define your take-profit target range in advance.
4. Calculate the worst-case scenario and allocate your position size rationally.

Now, regarding taking profits, don’t do open-ended, full-position take-profits. The market will eventually turn, and you can only earn the part of the profit that you understand.

All too often, the price reaches your set target, but you don’t take profit, getting trapped by greed. Once the market reverses, your previous gains vanish instantly, and you might even end up losing. This is a double blow.

A wiser approach is to take profits in stages or keep a small position. The expectations set before entering the trade must be executed—anything beyond that is just a bonus. Don’t get greedy.