🔖 The Rule of Stop-Loss What’s hardest to endure after a stop-loss isn’t the loss itself—it’s watching the price rise again above where you sold. While holding a losing position, you can tell yourself, “It’s not over yet.” But after a stop-loss, a rebound makes you feel, “I was wrong.” That’s why you want to buy back in. But buying again at that moment isn’t about recovering your loss—it’s about avoiding regret. Buying high, selling in pain, and then buying again because you can’t stand watching it rise— This is the most typical path by which an account without rules gets wiped out. The purpose of a stop-loss isn’t to sell exactly at the bottom. It’s to cut off the possibility of even greater losses and to stick to your predetermined rules. A rebound after a stop-loss isn’t proof that your stop-loss was wrong. It’s simply the most predictable temptation designed to make you abandon your rules.