Do not cut losses even by mistake; do not hold the position in the red by mistake

There is no single correct answer in the market,

so these concepts are quite important.

This contradiction-like idea is crucial when trading in the market,

and you would understand it if you have experienced past markets many times.

The market is full of traps and deceptions.

Because technical analysis is not being prioritized

Technical analysis is

a tool to more easily identify market shapes that are likely to be emphasized.

In other words, technical analysis does not actually create the market.

What creates it is fundamentally driven by fundamentals, after all.

Whether it is large institutions or individual traders, that is what it comes down to.

And the market can change at any time, you know.

Therefore,

there are markets where you must never cut losses

(cases where stopping out or reversing leads to the opposite outcome)

there are markets you must never hold through with a losing position

(patterns where a position remains salted and continues to move against you)

The final criterion becomes fundamental analysis.

That is the market.

Whether in AI-driven markets or human-driven markets,

in either case, “not much changes.”

Because regardless of which algorithm is driving it,

it remains “extremely fundamental and an indirect technical analysis.”

That state or phenomenon does not change.

Therefore, we must understand the contradiction-like concepts of cutting losses and holding through as part of our knowledge—in a theoretical and systematic way.

That is what yields daily capital increases.

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