How to prevent invalid stop loss?

If a stop loss is set when going long, and the market loses money downwards, and then continues to rise, this kind of stop loss is an invalid stop loss.

I believe many friends have had this experience, so how do you deal with this situation?

First of all, we need to understand why we need to set a stop loss?

The purpose of stop loss is to avoid suffering a devastating blow when going in the wrong direction.

In other words, stop loss is to treat possible losses as real losses, and use small losses to avoid destruction. To simply understand, it is to buy insurance.

Going back to the original question, how to prevent invalid stop loss?

I personally feel that there is no need to take precautions. As long as it is within the tolerance of your own system, you should dare to embrace stop loss.

What do you think? #交易策略