The Truth About Losses: 99% of people don't die because they can't read indicators, but because they lack their own trading system and casually open orders.

How to establish one? The sequence is very important.

**Step 1: Determine the Market Type**
Is the market currently ranging or trending? You need to think this through clearly. Many people are vague and ambiguous, opening orders without clarity, which is definitely noise. The structure must be clear.

**Step 2: Confirm the Trading Direction**
Abandon all hedging orders. After confirming whether the market is trending or ranging, decisively go short when bearish and long when bullish. Don't hesitate.

**Step 3: Wait for Key Levels**
Don't rush. Not every price level is worth trading based on its cost-effectiveness. In a trending market, wait for a breakout; in a reversal, act at key reversal structures.

**Step 4: Calculate Position Size Scientifically**
Use the stop-loss distance to back-calculate your position size. For example, if you set a 5% stop-loss and can accept a maximum loss of $100, then the position size is 100 ÷ 5% = $2000. This way, you won't act recklessly.

**Step 5: Execute the Stop-Loss**
Loss aversion is the hardest psychological barrier for traders to overcome. But you must understand this fact: resisting a stop-loss equals liquidation. Surviving in the market is more important than anything else.

My advice to yourself is: start practicing with small amounts and small stop-losses. Those who can't stop losses at small amounts will affect their mindset, life, and even family when trading larger amounts. Because you haven't yet developed the ability to achieve consistent profits.