Should Stop Loss Be Wide or Tight?

Wide Stop Loss
Provides more room, can withstand fluctuations, and is less likely to be easily shaken out.
But if you misjudge the direction, the cost can be heavy.

Tight Stop Loss
Limits individual losses, reducing psychological burden.
However, even slight market movements can lead to frequent stop-outs, continuously eroding the principal.

Many people are always looking for the secret to "small stop loss for big market moves"—
But that’s not a strategy; it’s more like a gamble.

Imagine you have ten chances to make mistakes:
One approach is to spread out the mistakes, allowing yourself to err more times.
The other is to go all-in on one or two critical trades.
In the end, both might survive, but the suffering experienced is vastly different.

There is no optimal solution, only the most suitable one.
Some can tolerate large drawdowns, while others must proceed step by step.
The important thing isn’t what others do, but how well you understand yourself: your risk tolerance, trading habits, and emotional bottom line—what path is truly right for you?

I ultimately choose a way that makes me feel at ease: narrow stop loss, fewer overnight positions.
Your answer may be different.
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