People often ask, "Should I cut losses when the price crashes?" This is a classic question, almost every trader has struggled with it.

To be honest, many people's thinking is completely backwards.

Stop-loss has nothing to do with current market news. Your stop-loss point should be set at the moment you buy—this is the insurance line you draw for yourself. Once triggered, turn around and walk away—not because you hear bad news suddenly, not because you think the market will weaken later, but because the stop-loss point has been reached and you must execute. If you can't understand this, you're still stuck in the trap of emotional trading.

Most people get stuck on this logic and can't get past it. But once you truly understand and can discipline yourself to execute, trading becomes immediately easier. With a steady mindset, decisions become clearer, and actions become more decisive.