The Art of Stopping Losses in Stock Trading

股海沉浮中的止损之道：当断则断，方得始终

The Art of Stopping Losses in Stock Trading: Resolve When Necessary, and Persevere to the End

“炒股如行船，暗礁常暗藏”，股海之中，涨跌如潮，盈亏似浪。有人因“一着不慎”而满盘皆输，有人因“当机立断”而转危为安。止损与割肉，这两个听起来带着血腥味的词汇，实则是股民手中的“罗盘”与“救生圈”——前者指引方向，后者守护底线。不懂止损，如同驾舟无舵；不敢割肉，恰似抱薪救火。二者看似相近，实则在主动性、时机与心态上有着天壤之别，唯有参透其中玄机，方能在红绿K线间游刃有余。
"Trading stocks is like sailing a boat, with hidden reefs always lurking." In the sea of stocks, rises and falls are like tides, profits and losses like waves. Some lose everything due to a single careless move, while others turn danger into safety with decisive action. Stop-loss and cutting losses, these terms that sound bloodstained, are actually the "compass" and "lifebuoy" in the hands of investors—the former guides the direction, the latter guards the bottom line. Not understanding stop-loss is like sailing without a rudder; daring not to cut losses is like carrying firewood to put out a fire. The two seem similar, but in reality, they differ vastly in initiative, timing, and mindset. Only by grasping their essence can one navigate the red and green K-lines with ease.

止损：主动预设的“防火墙”

Stop-Loss: A Proactively Set "Firewall"

止损不是怯懦，而是“防患于未然”的智慧，是投资者在硝烟未起时便筑好的“护城河”。股神巴菲特曾言：“投资的第一要义是保住本金，第二要义是永远记住第一要义。”这本金的守护者，正是止损。它要求投资者在买入前便根据风险承受能力、技术分析划定明确点位——或跌5%，或破关键均线，一旦股价触及，便如触发警报的消防系统，自动或手动执行卖出，将亏损锁在可控范围。
Stop-loss is not cowardice, but the wisdom of "preventing trouble before it arises"—a "moat" built by investors before the smoke of battle even starts. The stock god Warren Buffett once said: "The first rule of investing is to preserve capital; the second rule is never to forget the first rule." The guardian of this capital is precisely the stop-loss. It requires investors to set clear points based on risk tolerance and technical analysis before buying—whether a 5% drop or a break of a key moving average. Once the stock price hits that point, it acts like a triggered fire alarm system, automatically or manually executing a sale to lock losses within a controllable range.

三国时期，诸葛亮北伐中原，每逢粮草不济便果断撤军，从不恋战。他深知“兵马未动，粮草先行”，一旦后勤告急，再强的攻势也难以为继，及时止损方能保全元气，等待下次战机。这与炒股如出一辙：当某只股票跌破预设止损位，如同粮草耗尽，此时不撤，只会被“空头大军”围追堵截，落得“全军覆没”的下场。华尔街传奇操盘手保罗·都铎·琼斯有个铁律：“任何一笔交易，亏损绝不超过本金的1%。”上世纪80年代，他做空美元前夕，提前设定止损点，即便市场短期反弹也不为所动。最终，当美元如预期暴跌时，他狂赚数亿美元，而那道止损线，恰如“定海神针”，让他在惊涛骇浪中稳如泰山。这印证了那句老话：“凡事预则立，不预则废”，止损的本质，是给贪婪装上“刹车”，给侥幸戴上“枷锁”，尽显主动布局的从容。
During the Three Kingdoms period, Zhuge Liang, during his northern expeditions to the Central Plains, would resolutely withdraw his troops whenever supplies ran low, never lingering in battle. He knew well that "before troops move, supplies must go first"—once logistics are strained, even the strongest offensive cannot sustain itself. Timely stop-loss preserves vitality, waiting for the next opportunity. This is identical to stock trading: when a stock breaks through a preset stop-loss level, it is like running out of supplies. Not withdrawing at this point will only lead to being pursued and intercepted by the "bear army," ending in total defeat. Paul Tudor Jones, the legendary Wall Street trader, had an iron rule: "In any trade, losses must never exceed 1% of principal." In the 1980s, before shorting the U.S. dollar, he set a stop-loss in advance and remained unmoved even by short-term market rebounds. In the end, when the dollar plummeted as expected, he made hundreds of millions of dollars, and that stop-loss line, like a "needle that stabilizes the sea," kept him steady as a mountain amid stormy waves. This confirms the old saying: "Preparation ensures success; unpreparedness spells failure." The essence of stop-loss is installing a "brake" on greed and a "shackle" on fluke, fully embodying the calm of proactive planning.

割肉：被动应对的“无奈之举”

Cutting Losses: A Passive and Reluctant Measure

若说止损是“未雨绸缪”，割肉则更像“亡羊补牢”——当损失已然发生，且超出预设范围，投资者在亏损扩大后被迫挥刀，只为避免“伤口”化脓溃烂，拖垮整个账户。它往往因未提前设止损，或因侥幸心理搁置止损计划，直到股价跌得面目全非，才在懊悔与不甘中咬牙卖出，此时亏损早已如脱缰野马，动辄超过20%，甚至腰斩。
If stop-loss is "preparing for a rainy day," cutting losses is more like "mending the fold after the sheep are lost"—when losses have already occurred and exceeded the preset range, investors are forced to act as losses expand, only to prevent the "wound" from festering and dragging down the entire account. It often happens because no stop-loss was set in advance, or due to fluke psychology that delays the stop-loss plan. Only when the stock price has plummeted beyond recognition do investors grit their teeth and sell in regret and reluctance. By then, losses are already like a runaway horse, often exceeding 20% or even halving the principal.

明末清初，大臣吴三桂镇守山海关，面对李自成大军压境，他曾犹豫不决，既不愿降顺，又忌惮清军。直到北京城破、崇祯自缢，他才仓促“割肉”降清，虽保住一时兵权，却因错失最佳止损时机，最终落得“身败名裂”的结局。这像极了股民的通病：股价跌5%时舍不得割，盼着“明天就反弹”；跌10%时自我安慰“只是回调”；跌30%时彻底躺平，眼睁睁看着“小伤口”变成“致命伤”，正应了那句“小洞不补，大洞吃苦”。反观“红顶商人”胡雪岩，他在钱庄生意遇挫时，虽未提前布局止损，却能在亏空扩大前果断变卖田产、店铺填补，哪怕“壮士断腕”也要保住核心信用。虽最终未能挽回败局，却为家族留了后路。炒股亦是如此，割肉时的阵痛如同拔牙，短痛难忍，却能避免更持久的折磨。就像《孙子兵法》所言：“途有所不由，军有所不击”，明知是无底洞，何必把所有筹码都扔进去？只是这被动之举，终究不如止损来得从容。
At the end of the Ming and the start of the Qing Dynasty, Minister Wu Sangui guarded Shanhaiguan. Faced with the approaching army of Li Zicheng, he hesitated—unwilling to surrender to the Shun regime, yet fearing the Qing army. Only after Beijing fell and Emperor Chongzhen hanged himself did he hastily "cut losses" by surrendering to the Qing. Though he temporarily retained military power, missing the best stop-loss opportunity led to his eventual downfall in infamy. This mirrors a common flaw among investors: reluctant to sell when the stock drops 5%, hoping "it will rebound tomorrow"; self-comforting "it’s just a correction" when it drops 10%; completely giving up when it drops 30%, watching a "small wound" turn into a "fatal injury"—exactly as the saying goes: "A small hole left unrepaired leads to great suffering." In contrast, Hu Xueyan, the "red-capped merchant," when his bank business stumbled, though he had not set up a stop-loss in advance,decisively  sold land and shops to cover losses before they expanded, even "severing a warrior’s wrist" to protect his core credit. Though he ultimately couldn’t reverse the defeat, he left a way out for his family. Stock trading is no different: the pain of cutting losses is like pulling a tooth—intense but short-lived, avoiding longer torment. As The Art of War states: "There are roads not to be taken, armies not to be attacked." Knowing it’s a bottomless pit, why throw all your chips in? But this passive move is  eventually less composed than a stop-loss.

止损与割肉：股海生存的“辩证法”

Stop-Loss and Cutting Losses: The Dialectics of Surviving in the Stock Market

有人把止损比作“船帆”，能在风暴中调整方向；把割肉比作“锚链”，能在失控时稳住阵脚。止损是“防微杜渐”的主动防御，割肉是“悬崖勒马”的被动补救；止损是“运筹帷幄”的理性规划，割肉是“临机决断”的无奈应对。二者虽同为“舍”，却因时机不同，结局往往天差地别。
Some compare stop-loss to a "sail," adjusting direction amid storms; cutting losses to an "anchor chain," stabilizing the ship when out of control. Stop-loss is proactive defense to "stem the tide at its source"; cutting losses is passive remedy to "rein in at the edge of a cliff." Stop-loss is rational planning "mapping out strategies from a command tent"; cutting losses is reluctant response "making hasty decisions on the spot." Though both involve "letting go," their outcomes often differ vastly due to timing.

晚清名臣曾国藩打仗有个秘诀：“结硬寨，打呆仗”，从不贪功冒进，一旦战局不利便立刻收缩——这是止损的智慧。而那些总想着“抄底”“反弹”的股民，如同三国时的马谡，死守“居高临下”的教条，直到亏损失控才被迫割肉，最终在“街亭”一败涂地。记得2008年金融危机时，有位老股民因重仓某地产股被套，从盈利50%到亏损30%，他始终坚信“政府会救市”，拒绝执行最初的止损计划，最终等来股价退市，毕生积蓄付诸东流。而另一位年轻股民，在亏损10%时严格按止损规则离场，用剩余资金抄底新能源板块，不仅挽回损失，更在随后的牛市中翻倍。这正应了那句古诗：“沉舟侧畔千帆过，病树前头万木春”——懂得主动止损，才能抓住新的机遇；等到被动割肉，往往只剩残羹冷炙。
Zeng Guofan, a prominent minister in the late Qing Dynasty, had a secret to warfare: "Build strong forts, fight steady battles"—never greedy for merit or reckless advance, and immediately withdrawing when the battle turned unfavorable—this is the wisdom of stop-loss. Investors who always dream of "bottom-fishing" or "rebounds" are like Ma Su in the Three Kingdoms period, clinging rigidly to the doctrine of "holding high ground," only forced to cut losses when losses spiral out of control, ultimately suffering a crushing defeat at "Jieting." I remember during the 2008 financial crisis, an elderly investor was trapped by heavy holdings in a real estate stock, going from a 50% profit to a 30% loss. He firmly believed "the government would rescue the market," refused to execute his initial stop-loss plan, and ultimately watched the stock delist, losing his life savings. Meanwhile, a young investor strictly followed the stop-loss rule when down 10%, used the remaining funds to bottom-fish in the new energy sector, not only recouping losses but doubling his gains in the subsequent bull market. This echoes the ancient poem: "A thousand sails pass by the sunken ship; ten thousand flowers bloom before the diseased tree"—only by understanding active stop-loss can one seize new opportunities; waiting for passive loss-cutting often leaves only crumbs.

股海之中，没有永远的赢家，只有懂得“留得青山在”的智者。止损是“三思而后行”的谨慎，割肉是“破釜沉舟”的魄力；止损让你“不贰过”，割肉让你“东山再起”。正如古人云：“君子见几而作，不俟终日”，当K线图发出危险信号时，与其抱着“不见棺材不掉泪”的执念等到割肉，不如早早设好止损“防患未然”。如此，方能在股海沉浮中，既有“乘风破浪”的豪情，也有“急流勇退”的清醒，最终驶向财富的彼岸。
In the stock market, there are no eternal winners, only wise men who understand "as long as the green mountains remain." Stop-loss is the prudence of "thinking thrice before acting"; cutting losses is the courage of "burning one’s bridges." Stop-loss keeps you from "repeating mistakes"; cutting losses lets you "rise again from the ashes." As the ancients said: "A virtuous man acts when he sees the moment, not waiting for the day to end." When the K-line chart sends danger signals, rather than clinging to the obsession of "not shedding tears until seeing the coffin" and waiting to cut losses, it’s better to set a stop-loss early to "prevent trouble before it occurs." Only then can one, amid the ups and downs of the stock sea, have both the passion to "ride the wind and break the waves" and the clarity to "retreat bravely when the current is fierce," ultimately sailing to the shores of wealth.