What is the most common phrase among beginner contract traders?n

"I know I should set stop-loss and take-profit, but as soon as I do, I get hit."n
It sounds like self-deprecation, but it’s a stage that most people have gone through.n
You’ve probably encountered this situation too: you open a long position, the price fluctuates slightly, and your stop-loss is hit instantly, then the market suddenly surges upward; or you hold a short position comfortably, but don’t set a take-profit, wanting to earn a bit more, only to watch your profits shrink or get trapped.n
It seems like a technical issue, but the real problem lies elsewhere — you treat stop-loss and take-profit as mechanical buttons to press casually.n
Wrong.n
Stop-loss and take-profit are actually the most critical steps in the trading cycle. They are not just technical issues but also trading logic issues.n
**The true significance of stop-loss is not to lose less money**n
Many people dislike stop-loss, mainly due to psychological reasons — they think setting a stop-loss means admitting defeat.n
But in the world of contracts, there is only one true game over: when you have no stop-loss mechanism.n
Let’s look at a real scenario.n
You find a very standard breakout pattern on the 15-minute chart of Bitcoin and decide to go long.n
What is your psychological expectation?n
"Once it breaks out, it should at least rise 3%."n
But there’s another question you haven’t seriously considered:n
"If it’s a false breakout, how much am I willing to lose?"n
What’s the result? Many traders set a random stop-loss, maybe below the recent low, 0.3%, 0.5%, appearing cautious on the surface.n
Then the market drops first, taking out your stop-loss, and then suddenly pulls up.n
What conclusion do you draw?n
"See, I got stopped out again, stop-loss is just a decoration."n
It’s not really about the stop-loss. The real issue is that you’ve never clearly defined what constitutes a failed trade.