Because the purpose of trading is to increase your capital based on your invested capital on stock market, and capital is your product for capital business, the protection of your capital is the most important thing In trading.

Before trading of stock, every investor or speculator must take into serious consideration of protection of his capital against any possible worst situation of market.

After establishing of his own concept or philosophy for protection of his product which is called capital,

any investor can afford to participate in stock market, which is the most risky market in the world.

What is the method for protection of your capltal?

It is to have your own trading algorithm for entry into market and exit from market before you start  to trade

and to practice your algorithmic displine disregarding any rumour or news from market after you join in market.

To have your own algorithm for trading may take your time depending on your effort or experience or talent.

Before trading, if you don't have algorithm to be executed  optimally in a real time responding to any market movement, you are not prepared to trade  and you are prohibited to trade.

If you participate in stock market with naive desire to become rich in a short time without ample preparation, your capital will be attacked by professional trader or institutional trader and you shall be a loser in the long run.