Instead of focusing on basic theories or principles, I'm going to write about practical techniques.

Today, I'll start with what I personally consider the most important and difficult aspect of trading in real-world scenarios.

What do you think is the most important thing in actual trading?

In stock trading, the ideal way to make money is to buy high and sell higher, minimizing losses.

Conversely, if you trade by buying, going up 1% and then cutting your losses at 3%, you'll end up losing money in the long run.

This is a common situation for those who have some knowledge of stocks and are considered intermediate traders.

You might be able to read charts somewhat and understand supply and demand, but still face this challenge.

This applies to a significant portion of stock traders.

You might feel like you're on the right track, but you're not getting anywhere, or perhaps you're winning twice and losing once, yet still not making a profit.

This suggests that your trading methods are flawed.

Most of those who make profits do so by maximizing profits while minimizing losses.

Even experts and seasoned traders can't avoid losses altogether.

The difference lies in their ability to understand and master the art of minimizing losses.

Personally, I believe the most crucial aspect is trading method skills.

While everyone understands the importance of stop-loss orders, few actually teach you how and in what ways to use them.

Though everyone has their own unique criteria, this is the trading method I've found most efficient in real-world trading.

Therefore, today, I'll discuss stop-loss and averaging down methods.

Generally, a stop-loss line of 3-4% is recommended for scalping and 1% scalping, while 10% is suggested for long-term trading.

However, these methods don't work in real-world trading.

Do you believe the people manipulating the stock prices are unaware of these commonly known strategies?

The reason why they manipulate prices up and down before a significant price increase is precisely because of these stop-loss orders.

Stock prices typically rise after short-term traders exit positions due to stop-loss orders.

During these price fluctuations, you need to have the courage and patience to endure even when prices hit new lows to fully reap the profits.

So, what's the ideal stop-loss range? The answer is, it should be a level you can comfortably handle.

It's about finding a price range where you can overcome your fear and maintain your patience.

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This means the stop-loss range varies depending on your individual investment proportion and amount.

I'm not sure how other experts manage their stop-loss orders, but here's my method.

Let's assume you're buying 10 million won worth of a particular stock. You'll initially invest 50% of that amount through the opening price or your first purchase.

Now, let's say the price goes up.

You'll buy more when you see a 2% profit.

(You can adjust this slightly based on intraday dips or the buy order strength on the order book, but make sure to buy additional shares only after you've made a profit.)

This way, even if you buy more, your account's profit rate might drop, but you'll always be in a position to sell and make a profit.

After this additional purchase, the price increase potential doubles.

It maximizes your profit potential.

If the price drops after you buy more, your #stoploss #line should be at a point where you're still making a profit.

You can either sell everything or sell 75% and keep the remaining 25% to continue #averagingdown and #buyingthedip.

Now, let's talk about what happens when the price goes down after your initial purchase.

After your initial 50% purchase, if the price drops by 1-2% (adjust this based on the specific stock and your risk tolerance), you'll cut your losses on 25% of your holdings.

Most stocks that are going to rise experience a correction within 2%.

After observing a double bottom pattern, wait for the price to break above the previous high of the double bottom and for a dip.

While you can buy during corrections if the price is rising, stocks that have fallen below their opening price often experience further declines after a double bottom.

When the price dips again, you can #average down by buying another 25%.

If the price falls by more than 3-5%, it's unlikely to be a temporary shakeout and could indicate a real downtrend.

In this case, avoid buying that day.

Wait a day or two until the trend reverses.

After successfully averaging down, if the price rebounds and you see a profit-making opportunity, determine if it's just a technical rebound or a sign of further growth.

You can then decide to sell everything, sell 25%, or buy another 50%.

It's generally advisable to sell everything after a rebound from a 3-5% decline.

If you successfully averaged down after a smaller correction, you can buy another 50% using the same method as when the price was going up.

If the price continues to fall after your initial averaging down, your stop-loss should be at the averaging down purchase price.

There's a low probability of a rebound on the same day or the next day.

If you see a clear rebound after that, your #averagingdown ratio should be 50%.

If this fails as well, it means you need to study more if you've failed three times.

Even if you succeed only once out of three attempts, you won't lose money. If you can't even achieve that, you need to #practice more with #papertrading.

Lastly, if the price falls by more than 10%, keep 25% of your holdings and avoid averaging down.

Instead, use the remaining 75% to make profits in other stocks, and then use those profits to buy back some of the 25% you're holding.

For instance, if you're down 25% and make a 3% profit on another stock, use that profit to cover some of the loss on the stock that's down.

If you're down 12%, you can fully sell your holdings after making a 4% profit on another stock, resulting in no overall loss.

In most cases, once you succeed with one or two stocks, you can sell the remaining ones even if they're down.

Avoid thinking that a stock will rise just because it has fallen significantly. While #averagingdown might seem like a good idea, it's common to not get your initial investment back.

It's like trying to revive a dead man; it's useless.

It's faster to recover your losses by giving up on such stocks and making profits on other ones.

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I hope you understood what I've been explaining all this time.

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If you're worried about the commission on 25% or the 2% stop-loss on 25%, consider long-term investments.

A 2% stop-loss on 25% can be offset by a 0.5% increase after you've successfully averaged down and invested 100%.

If you're currently making and losing money (excluding those who consistently lose, as they need to study more),

mastering this method can lead to profits even without advanced trading techniques.

This method allows you to minimize losses and maximize profits if successful. While it might not generate large profits, it helps prevent losses.

You won't be afraid even if the price goes down.

Of course, you still need to figure out if the price has reached the bottom. But if you're unsure, you can buy when the price reaches a new low after the initial rise and then dips.

Those who haven't established their investment proportions or stop-loss methods should refrain from buying and focus on solidifying these fundamentals.

This applies to long-term investors and those investing large amounts as well.

Long-term investors only need to focus on consistently buying in portions. You don't need any special techniques.

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There are always opportunities if you don't lose money.

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In actual trading, making a daily limit up isn't the priority; it's about knowing how to avoid losses and how to recover from them. It's important to build these habits first.

The methods I've discussed are tailored for my style of trading, focusing on short-term strategies.

This doesn't mean everyone should follow them blindly. You need to find your own methods based on your investment proportion and trading style and practice them until they become second nature.

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It might seem simple, but it's not at all easy.

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It was more challenging for me than developing trading strategies.

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You'll realize how difficult it is when you actually try it.