Hello everyone, today I would like to talk to you about the most important thing about investment trading? Personally, I think the answer is stop loss, which is what Warren Buffett said about keeping the principal, and only by keeping the principal and staying at the table can it be successful. Many successful traders, for the most part, go from failure to success. Before becoming good traders, they almost all had to liquidate their positions and even had to leave the market temporarily, so what made them succeed in the end? The answer is stop loss, and only by learning to stop loss will you have a chance of success. Don't worry about losing opportunities at any time, there are opportunities in the market all the time, and don't try to seize every opportunity. The essence of investment trading is risk management in the face of uncertainty.
Why are we reluctant to stop losses? I will briefly talk about two points, one is that we are afraid that after we cut our own meat, the market will be ** or even reversed; the second is the wishful thinking that if you don't sell, you won't realize the real loss; Unwilling to take the initiative to stop losses and unwilling to admit our mistakes is the biggest mistake we make in investment, and it is also a manifestation of our irresponsibility to ourselves.
For a successful trader who wants to be a good one, investing in trading is not about proving yourself right, but about making money. Only by learning to stop loss without hesitation can we make our investment trading road go on for a long time, instead of being forced to get off halfway.