Three-step stop loss method: Cure the trading ailment of "short-term turning into long term"!

1. Core Principle: Trend as Shield, Stop Loss as Life
The first second you open the trading chart, you must clarify one answer: is the current trend bullish or bearish?
- Long position logic: The 1-hour chart anchors to the "last clear low point + high point", where the low point is the "ultimate defense level", which is an insurmountable key point;
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- Short-selling logic: Lock in the "last clear high point + low point" on the 1-hour chart, with the high point being the "death line"; if broken, exit is necessary.
Core principle: counter-trend trading = actively seeking death, always looking for opportunities in the direction of the trend.
2. Precise Strikes: Capturing the "Optimal Entry Point" at a Small Scale
Set the trend and never rush to enter the market! Most losses stem from impulsively chasing orders, and the first gap between experts and novices is patience.
- Long-term strategy: Wait for the price on the 10-minute chart to retrace, and after the appearance of a clear bottom structure such as a double bottom or bullish engulfing, then choose the right moment to intervene;
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- Short-term strategy: Wait for a price rebound on the 10-minute chart, and after a weak top structure such as a double top or bearish engulfing appears, take decisive action.
Core logic: Use small-level structures to filter out market noise, allowing entry timing to carry its own "win rate buff."
3. Ironclad Discipline: Stop loss is like breathing, execute unconditionally.
This is the essence of the entire method and the key to 90% of traders failing.
- Long-term stop loss: Strictly set below the "critical point" (the last clear low) on the 1-hour chart, leaving no buffer space;
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- Short-term stop loss: firmly set the level above the "death line" (the last clear high point) on the 1-hour chart, rejecting any wishful thinking.
Core Military Regulations
When the price reaches the stop loss line, do not ask why, do not look for excuses, cut the position unconditionally, as hesitation for a second could lead to disaster.
The essence of trading is never about being "right every time," but rather about "minimizing losses during the wrong times"—by preserving the principal, there lies the potential for infinite recovery.
Because it condenses the three core aspects of trading: following the trend (increasing win rate), waiting for structure (filtering noise), and maintaining discipline (protecting capital).
The method is summed up in these three sentences, but traders who can achieve "unity of knowledge and action" are few and far between. If you are unwilling to face the test of discipline, no strategy, no matter how good, will be more than empty talk. $BTC