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 In trading, the stage where you consistently avoid large losses is often referred to as disciplined risk management. This involves implementing strategies and techniques to limit potential losses on each trade, such as using stop-loss orders, position sizing, and adhering to a strict trading plan. It's not about avoiding losses altogether, but rather minimizing their impact on your overall capital. 

Here's a more detailed look at how traders achieve this:

1. Risk Management Techniques:

• Stop-loss orders:

  These orders automatically sell your position when it reaches a predetermined price, limiting your potential loss. 
• Position sizing:

  This involves calculating the appropriate amount of capital to allocate to each trade based on your risk tolerance and the size of your account. 
• The 1% rule:

  A common guideline is to risk no more than 1% of your total trading capital on any single trade. 
• The 2% rule:

  Another popular risk management strategy, limiting risk to 2% of capital. 
• Maximum daily loss:

  Setting a limit on how much you're willing to lose in a single day can prevent large drawdowns. 

2. Trading Plan Discipline:

• Clear trading strategy:

  Having a well-defined strategy with specific entry and exit rules helps reduce impulsive decisions. 
• Following the plan:

  Adhering to your trading plan, even when faced with losses, is crucial for consistent performance. 
• Reviewing and adjusting:

  Regularly reviewing your trading performance and making necessary adjustments to your plan helps optimize your approach. 

3. Psychology and Mindset:

• Accepting losses:

  Losses are inevitable in trading, and accepting this fact helps prevent emotional decision-making.
• Controlling emotions:

  Staying calm and rational during trading is essential for executing your plan effectively.
• Focusing on process:

  Shifting focus from short-term profits to the long-term process of risk management and strategy implementation can improve overall results. 

4. Understanding the Market:

• Market knowledge:

  A deep understanding of the markets you're trading in can help you make more informed decisions.
• Technical analysis:

  Using technical indicators and chart patterns can help identify potential entry and exit points.
• Fundamental analysis:

  Analyzing a company's financial statements and industry trends can provide valuable insights. 

By implementing these strategies and maintaining a disciplined approach, traders can significantly reduce their risk of large losses and improve their overall trading performance.