"Which is more regrettable, a stop loss or a missed opportunity?" This question is similar to regrets in relationships, whether it's never obtaining (missing out) or the result not meeting expectations (stop loss), both stem from the anticipation of unachieved goals. In trading, when a missed opportunity or stop loss occurs, people often feel down because they represent lost profits or incurred losses. However, it’s important to realize that both are normal in trading; all we can do is say no to these regrets, try to avoid them, and strive to move forward.
How can you minimize regrets about stop losses and missed opportunities in trading?
The key is to establish and follow a trading plan. You need to think in advance about what to do if the trade meets or does not meet expectations. Whether it's taking profits or stopping losses, it should be executed based on the trading system you adhere to.
Compared to feedback in relationships or work, the immediate feedback in trading makes investors easily influenced by emotions, leading to anxiety and struggles in the decision-making process—overcoming this requires learning to place oneself in a wartime state, adhering to a pre-established battle plan, and not changing strategies due to short-term market fluctuations. The worst is to be indecisive, choosing a moving average system today, an ICT&SMC tomorrow, and traditional PA the day after... Always swaying, never consistent, and it's strange to expect to make money.
Even when faced with an impending explosive bull market, even when market sentiment is high, and everyone is strongly recommending buying and selling cryptocurrencies from exchanges, family, or even friends, as a trader, one should stick to their take profit and stop loss strategies. All trades should be based on a pre-established plan and logic, such as positioning or adjusting positions at specific, critical spots, not blindly chasing highs or stopping losses. Ensure that every trade is well thought out and planned before hitting the open position button. Traders should make detailed plans before trading and execute according to that plan, rather than being affected by short-term market fluctuations.
For example, if the market keeps falling and you plan to wait for a suitable entry during the pullback because there are many unpredictable external factors, once there is a deviation in your plan (like a bearish candle appearing in the hourly frame after entering), don't panic and change your strategy, as this might lead to stop losses or missed opportunities. Maintain your original profit and loss ratio plan and defensive position, and do not be frightened by short-term noise. "What if it's a second false break?" "What if the price just pauses without showing the expected reversal?" Opening a position requires planning each step in advance, clarifying the response strategies after placing an order, including specific action plans for various scenarios such as rising, falling, or sideways movements; do not fight unprepared battles.
When the position arrives, definitely execute the operation according to plan.
(The alert system often locks in the lowest points, but these lowest points occur during sharp declines.)
Even if you suffer a 'defeat', it's just accepting a stop loss; a defeat in a battle is nothing in a war. If you're all-in betting on a single outcome, then forget I said anything. Even in the face of a sharp decline, one should maintain the principle of planning first, and once a plan is made, execute it decisively without being swayed by the negative voices of outsiders.
