Chen Guilin's trading notes: October 16, 2026 Case: Why do we need to stop losses when we know it's the floor price? LITE ： 1. Transaction process: Old Mantou is only counted for this transaction. The first wave is 925 people getting on the train and 1100 people getting off the train (regular stock in stock); Then 980 took over the contract, 830 suffered losses; The overall loss is 1000U, which is approximately equivalent to playing for nothing; 2. Technical analysis: The red line and the green line in the figure are the judgments and assumptions of the two different middle line routes of the old Mantou. The red line represents a major level adjustment, while the green line represents a new upward trend; The reason for receiving the dish at 980 (really a bit urgent): ① The urine of old Mantou has dropped by more than 10% in the past, so the probability of backdraft is very high; ② It is to continue the previous transaction (which has already earned nearly 20% of T), continue to rise, and continue with Green 3. The red line is ABC, and the green line is 12345. So, if I have eaten all the black 1 in the three waves inside the green line, and then buy black 345 when black 2 rebounds, and even expand to green 345, then this trade has a hard stop loss point, which is the starting point of the black line, which is 830. If it is a 2-wave, then it cannot fall below the starting point of the 1-wave. So, why did I take orders at 980 (because all orders above 830 are covered by my profits), why did I stop losses, because it has already gone bad and the green line has been falsified. So, since the green line has been falsified and is following the red line, there are actually infinite possibilities for red C: 1. It is highly likely that if Red B is strong, then Red C will be weak; 2. However, it is not impossible for Red B to break through the top 5 waves for you, and Red C to break through the bottom 4 waves for you; 3. In short, he can be vertical or horizontal, which we cannot predict. However, what we can predict is that he is indeed in the C wave, which is the same level of adjustment as the A wave that was adjusted from May to the end of July. So, since it's at the same level, since it's an adjustment, and since the expected intention of this transaction (to drive the rise) is different after placing the order, stop loss is only divided into timing, but it is certain that it must be executed. After all, if you don't execute, if you hold a position, you will have a bottom, which will determine your mind and make you fantasize. Winning is luck, and losing more is the norm. Besides, just because I ran away doesn't mean I won't reopen (that's just a new transaction), it doesn't mean I won't open anything else. 15000U, not much money, can accept losses, but the mentality (worth tens of thousands of gold) cannot be chaotic.