Understand the transaction from a story.
A prostitute went to PC and often gave tips to the prostitute. It is natural for PC to pay. But the prostitute thought the prostitute was generous, so she liked to play with him. Even if the prostitute owed money occasionally, she was willing to do so, because most of the time the prostitute paid even though he owed money. Maybe he would give the prostitute an unexpected surprise and tip her. The prostitute thought the prostitute was so nice.
The ultimate goal of the prostitute is to have sex for free, and it is best to have feelings for him and get money for free. Generally speaking, the more familiar the prostitute is with the prostitute, the more likely she is to be freed.
After all, one time, the prostitute owed money again, and the prostitute was still waiting for the kind-hearted prostitute foolishly, waiting like a big boss. But this time the prostitute was so cruel! He owed more and more! He never came back after owing money! The little money that the prostitute had worked so hard to save was actually swindled away by the prostitute at one time, and it was not enough!
The prostitute's nature as a liar will not change. He pays money just to cheat the prostitute more! And the market is this prostitute.
Used in trading:
People who do not set stop loss to trade have the mentality of prostitutes - every time they hold a losing order and wait for the return of the capital, it is like saying to the prostitute who owes money: "Uncle, come and pamper me!"
Such people are often "freeloaders", holding the losing order for a long time, and may run away as soon as the capital is returned. Usually, the winning rate of placing orders seems to be very high, but it is not profitable. Generally, they run away when they make a little profit, and they keep holding on when they lose. The money they earn for a long time may be reduced to the original state in one order, which is not enough.
Wall Street motto: The initial stop loss is the cheapest.
There must be a stop loss when trading, because we don't know which time the market will never look back, and we can't bet on it. This is a way to go bankrupt. Many times, you may not encounter it, but if you encounter it once, it will be enough for you. And I can say for sure: as long as you don't set a stop loss, you will eventually encounter a time when the market will never turn back, it's just a matter of time.
No one is 100% correct. Stop loss is an integral part of successful trading. Trading without stop loss is definitely unsuccessful.
Taking the initiative to bear limited risks is the basis for the existence of traders. Traders who don't set stop loss are not prepared to take risks. Do you think he can succeed?Not to mention becoming a master!