#交易思考

Today, I will specifically talk about the issue of stop-losses when training your trading system.
In my usual trading, I often mention that stop-losses should be within your acceptable risk range, because some people dislike using stop-losses, some set them too close, and some hit their stop-losses only to see the market rally afterward...
For example, if you practice with $1,000, risking 5% per trade, with 100x leverage, and a 2-point stop-loss, you can approximately have 10 stop-losses in total. Although you're only risking 2% of the price fluctuation, using 100x leverage means this 2% price movement actually results in a 10% loss of your total capital ($100 ÷ $1,000). In other words, each stop-loss reduces your account by 10%.
10 times may sound like a lot, but in actual leveraged trading, five consecutive losses can cut your account in half; seven consecutive losses can leave you with less than half. After your capital shrinks, the 50-dollar margin for the next trade will automatically represent a larger proportion of your total funds, increasing the risk gradually. This doesn't even include trading fees.
Based on my experience, my advice is to practice with a 5% position size and 20x leverage. With $1,000, you can afford 50 stop-losses, meaning you can complete 50 practice trades. After 50 trades, review all your trades, analyze the profit and loss ratio, and then make adjustments to improve your short-term strategy and increase your win rate. After practicing for a while, you'll develop a basic sense of market trends and find your own comfortable trading zone.