2026-01-11 07:21:58

I often hear this question—when encountering a bearish market, should I cut losses?

In fact, this reflects a fundamental cognitive bias among many traders. Many people tie their stop-losses to market news, feeling that they should consider cutting losses only when the situation seems unfavorable. But this logic itself is flawed.

The true stop-loss point should be set at the moment you make the purchase. It is a risk defense line, a protection for yourself, not something decided impulsively based on news or feelings. Once the stop-loss condition is triggered, you should execute it—don't hesitate, don't wait, and don't regret just because recent market conditions feel weak.

This shift may seem simple, but in reality, many people get stuck here. Once you understand it thoroughly and truly implement it, your trading mindset will become much more relaxed. No more frequent doubts, no more emotional manipulation, and your trading logic becomes clearer. The difference is quite significant.

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LiquidatedThrice

· 5h ago

You should have thought out your exit strategy from the beginning instead of regretting it when you're getting liquidated. To put it bluntly, it's an execution problem. Set your plan and stick to it, don't argue with yourself. Seriously, I've tried this approach, and it really does help you avoid getting cut a lot.

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GweiObserver

· 01-11 07:50

That's right, stop-loss is something you should think about when you buy, not something to scramble for based on news at the last minute. --- That's why I never trust those shouting "wait a bit longer," they're all driven by emotions. --- People who understand have already set their stop-loss points; those who don't are still struggling, serving them right for being trapped. --- Pre-setting the stop-loss point truly changed my mindset. I used to hesitate frequently, but now I feel like it's nothing. --- Too many people are stuck, thinking they're gambling on the future, but in reality, they're betting on their own psychological resilience. --- The analogy of risk defense lines is excellent; many are still dismantling their defenses...

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UnluckyValidator

· 01-11 07:49

That's so true. I used to be the kind of person who only stops losses based on news, cutting losses until I doubted my life. Following discipline is really much harder than predicting the market trend, I have to admit. Still the same advice: plan ahead before the market opens, and don't regret it later; otherwise, you'll be stuck in daily indecision.

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ZKProofster

· 01-11 07:30

tbh this is just risk management 101 dressed up in motivational language. the math doesn't care about your feelings when you set the stop loss... it cares even less when you ignore it lmao

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FlashLoanLarry

· 01-11 07:29

ngl the whole "should i cut losses on bad news" question is basically asking me to do their risk math for them. pre-set stops aren't revolutionary, they're just... capital preservation 101? the real leak here is that most traders confuse portfolio management with emotional decision-making. opportunity cost keeps compounding while they're sitting there wondering if they should exit lol

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