Big stop loss vs small stop loss: There is no "magic solution", only options that fit your trading choices.

There has never been a perfect answer of "wanting both" when it comes to setting stop losses in trading—large stop losses have high tolerance but incur greater losses in a single trade, while small stop losses minimize losses but are easily triggered. As for "small stop losses making big money," it is essentially akin to a binary lottery winning 5 million, more like a low-probability miracle rather than a replicable trading logic.

With a total stop loss amount of 1 million (with consistent margin), the core differences are clear at a glance:

1. Major Stop Loss: The "Withstanding Volatility" Logic Behind High Win Rate

1. Core settings: Single stop loss directly set to 1,000,000
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2. Core Advantages: Maximum fault tolerance, able to withstand short-term market fluctuations, with a remarkably high win rate (for example, 9 wins and 1 loss), without frequently facing the frustration of stop loss triggers.
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3. Core Shortcoming: Once the stop loss is triggered, it results in a full loss, which requires a high level of psychological resilience and financial strength, with a significant impact from a single hit.

2. Small stop loss: the "high-frequency trial and error" logic for stable risk control

1. Core Settings: Single stop loss is controlled at 100,000.
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2. Core Advantages: The amount of loss per transaction is small, the psychological threshold is low and easy to accept, and one can quickly adjust their state from losses, resulting in more diversified risks.
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3. Core Shortcomings: High trigger frequency with relatively low win rate (for example, 6 wins and 4 losses), requires accepting the trading rhythm of "frequent small losses," which tests execution ability.

Key Conclusion

Both methods resulted in a total stop loss of 1 million after 10 trades, there is no absolute "better".

1. Choose a large stop loss, suitable for traders who can withstand significant single losses and are adept at capturing high-certainty trends.
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2. Choose a small stop loss, suitable for traders who pursue risk stability and cannot accept large single losses;
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3. Don't cling to the fantasy of "small stop loss, big profits"; the core of trading is to adapt to one's own risk tolerance, rather than pursuing an unrealistic perfect balance.
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