Losses are inevitable. But here’s the thing – it’s not the small losses that pose the greatest threat to your trading capital; it’s the big ones. That’s why I make it a cardinal rule to never let a losing trade spiral out of control and turn into a big loss.

So, how do I avoid taking big losses? I set strict risk management rules and I stick to them religiously. Whether it’s using stop-loss orders, position sizing based on a predetermined percentage of my trading capital, or implementing other risk mitigation strategies, my goal is the same – to limit my downside and protect my capital from catastrophic losses.

But perhaps even more crucial than avoiding big losses is the mindset shift that accompanies it. It’s a proactive approach that prioritizes capital preservation above all else. Instead of chasing after unrealistic gains or letting emotions dictate my decisions, I remain disciplined and level-headed, knowing that preserving my capital today is the key to trading tomorrow.

So, fellow trader, remember this: never take a big loss. It’s not just about protecting your trading capital; it’s about safeguarding your financial well-being and ensuring that you live to trade another day. Don’t focus on how much you make – focus on how much you keep.

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