In real trading, if we stop the loss every time, after the stop loss, the market will verify that our stop loss is correct. For example, when the market is rising and the market falls, we stop the loss. After the stop loss, the market is indeed correct. If it falls further, it can at least provide us with a lower entry cost, or even change the trend. Every time we avoid a large loss or retracement, we will form self-strengthening and pay more attention to stop loss. and improvement. Naturally speaking, we will be very decisive every time we stop the loss, because the stop loss situation in recent times shows that not stopping the loss means a large loss or a profit retracement. Of course, we will choose to stop the loss if we seek profits and avoid losses. Damage, and extremely determined.

The cruel reality is that most of our stop losses are wrong, that is, after the price reaches the stop loss price, the market will most likely go back, including two situations: the first situation is that the stop loss price is The pain after loss, that is, after the stop loss, the market goes back, and we unconsciously think "if we stop losing, we will not lose", which leads us to false stop loss, especially if this happens several times in a row, it will make us If you want to slap yourself, the pressure will double, and you will scold yourself for being stupid, so you will easily "stop loss" behavior on the next order; the second situation is the sweetness brought by not stopping loss, and the price reaches the stop loss price. Finally, we did not stop the loss, but the market went back. We tasted the sweetness and were secretly happy. Fortunately, we did not stop the loss and lost some money. This happened several times in particular and strengthened ourselves. Under the temptation of this sweetness, we easily This will result in non-loss behavior.

However, in real trading, the ending of our stop loss is often not like this. For example, during the rise, the market falls and the stop loss is hit. The common thing is: we stopped the stop loss correctly. After the loss, the market fell a lot. This stop loss was wrong. After the stop loss, the market quickly went back up. Once there was some stop loss, judging from the results, it was wrong. The market trend We can all go back, which will provide room for our luck, because since there are some stop losses, if they are not executed, the market can go back, so naturally, under the human weakness of people who are prone to become ostriches when encountering danger, naturally , you will unconsciously think in your heart: "This transaction is not guaranteed. If the loss is not stopped, the market will rise back. If you don't execute the stop loss first...", then you become hesitant to stop the loss. The stop loss is wrong; sometimes the stop loss is right; just like a random event, the execution is not very good.

In real trading, the cruel reality is: most of our stop losses are wrong. Because in the long term, the prices of both stocks and futures fluctuate within a wide range. After all, unilateral major trends rarely occur, and the market is destined to remain in the range most of the time, or even most of the time. It fluctuates up and down in a large range, but within this large fluctuation range, there will be a band-like trend market. We can find this problem by reviewing the market; even if we don’t look at the long cycle, looking at the medium cycle, most of the The market also fluctuates up and down, and there are relatively few trending markets. After all, two-thirds of the market is fluctuating. This means that most of the time, unless we are unfortunate enough to be long near the top or short near the bottom, otherwise, if we are in the middle of the market, no matter whether we are long or short, most of the time, even if our order is trapped, we can resist it. , and still get some profits. This means that if we hold on to a light position and hold on to a light position, most of the market trends will be able to resist, which will easily give us evidence of "not stopping the loss" and a psychological shadow, making it difficult for us to execute the stop loss. a cruel reality. To sum up, since there are relatively few unilateral big market trends, most of the markets are volatile. From a long-term perspective, most of the time the market fluctuates up and down within a large range. Even if there is a trend, it is in a band. Trends, there are relatively few unilateral big market movements, which means that after the market reaches the stop loss price, there is a high probability that it can go back again, and the time may be long or short, which means that you do not execute the stop loss, or stop the loss. Hesitant behavior brings fertile soil and historical evidence. Of course, it also brings strong luck. This is a cruel reality.

(Selected from the Master’s Trading Guide)