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XAG’s pre-emptive call last night has already hit the first take-profit target; we’ve reduced the position and moved the stop to break-even for zero risk.
For those new traders who don’t understand why the stop-loss range is so wide, here’s a brief explanation.
A stop-loss is meant to ensure that the principal does not suffer a major drawdown under extreme market conditions.
You don’t open a position just to get stopped out; you open it to take profit.
Adding to a position doesn’t mean you must necessarily add; it provides an opportunity to add once and recover your losses if your directional judgment is wrong.
It’s all about risk control. Only after risk is properly controlled can we talk about returns.
Once the first take-profit target is hit, we immediately reduce the position and execute a break-even stop.
Your stop-loss will immediately be raised to the break-even price, so even if the price drops, our principal will not suffer any loss. If it doesn’t drop and the market makes another move, your remaining position can securely capture the subsequent take-profit targets.
If you still don’t quite understand, watch my livestreams more often. Basically, anyone who has watched my livestreams for a long time and pays attention will understand the meaning of take-profit and stop-loss.
$XAG