Don’t bet everything at once
A person who exits after a single stop-out cannot win
If your funds are significantly shaved off by just one loss,
that is not trading but a gamble of luck, a one-shot bet.
that is not trading but a gamble of luck, a one-shot bet.
“I lost my funds all at once when I cut my losses,” “One loss makes it impossible to recover” — if you have experienced this, the problem is not the act of cutting losses itself.The issue is that you are overbetting on a single trade.
Trading is a game of probabilities. No matter how excellent your method, losses will occur. If you trade 100 times, you will have several losses in a row. This cannot be avoided. The problem is whether you exit due to those consecutive losses in a row.
If you are trading in a way that loses most of your funds with a single stop-out, you will inevitably exit at some point. Moreover, this has nothing to do with the quality of your method; it isa mathematical inevitabilitythat you exit.