No Stop Loss – The Shortest Path to Account Burnout

In trading, what kills many investors is not the wrong market trend prediction, but the habit of not setting stop loss. No one can avoid mistakes; misjudgment is inevitable on the trading journey. But the most dangerous thing is when we treat "gritting our teeth and enduring" as a truth. Initially, a few times of stop loss make us feel like we are wasting opportunities, then gradually we completely drop that protective layer. A few lucky times of holding onto profits to break even make us mistakenly believe that we have skills, when in reality it is just random survival. This habit is like a double-edged sword. You may get through nine times, but on the tenth time, if you encounter a price gap (gap) or if the exchange locks the orders, you won't have time to stop loss. At that moment, all the profits accumulated before can be wiped out in an instant. The most frightening thing about compound interest is not missing out on opportunities or suffering a few minor scratches from stop loss orders, but rather a "fatal mistake." Missing out only means you earn less, stop loss is just losing a small part, but burning out your account under high leverage means being kicked out of the game. Even if you trade correctly a hundred times, with an account that looks like a straight line going up, just one wrong all-in can send everything back to square one. The profits you build are like castles on sand; without a stop loss, a single market wave is enough to destroy the entire foundation. In 10 rounds of the market, even if you miss 5, have a stop loss on 2, as long as you catch the right 3 major trends, it is still enough for the account to grow multiple times. However, most investors get stuck in the vortex: small profits are taken, large losses are held. As a result, the account keeps doubling and then losing half, doubling again and then losing half, the profit curve resembles an unstable heartbeat on an electrocardiogram. It is important to understand: compound interest never loses to the market, but only loses to oneself when repeating major mistakes. Stop loss is not a cost, but rather the oxygen that allows us to survive for a long time. Leverage is not the wings that lift us up, but a stick of dynamite that must be used with caution. 👉 To go the distance, learn how to protect your capital. In trading, preserving your capital is the greatest victory.