Let's talk about the old but crucial aspects in trading: take profit and stop loss. It's not just a strategy, but also a discipline.
About stop loss: it is the "brake" and "insurance policy" of trading. Before entering any trade, a clear stop loss point must be preset. This point should not be set arbitrarily, but should be scientifically determined based on technical structure and your maximum acceptable loss per trade (for example, 1-2% of total funds). Triggering the stop loss must mean leaving without conditions; avoid moving the stop loss or holding onto a sense of luck. As long as you are alive, there are infinite possibilities.
About take profit: Take profit tests the "greed" in human nature. The insight is: take profit in batches and let the profits run. After reaching key resistance levels or the initial risk-reward ratio target (such as 1:2 or 1:3), you can partially close positions to lock in profits and reduce the cost to zero. The remaining positions can then adopt a trailing take profit method (such as trend lines or moving averages), using floating profits to seek larger trend movements until a trend reversal signal appears to completely exit.
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Let's talk about the old but crucial aspects in trading: take profit and stop loss. It's not just a strategy, but also a discipline.
About stop loss: it is the "brake" and "insurance policy" of trading. Before entering any trade, a clear stop loss point must be preset. This point should not be set arbitrarily, but should be scientifically determined based on technical structure and your maximum acceptable loss per trade (for example, 1-2% of total funds). Triggering the stop loss must mean leaving without conditions; avoid moving the stop loss or holding onto a sense of luck. As long as you are alive, there are infinite possibilities.
About take profit: Take profit tests the "greed" in human nature. The insight is: take profit in batches and let the profits run. After reaching key resistance levels or the initial risk-reward ratio target (such as 1:2 or 1:3), you can partially close positions to lock in profits and reduce the cost to zero. The remaining positions can then adopt a trailing take profit method (such as trend lines or moving averages), using floating profits to seek larger trend movements until a trend reversal signal appears to completely exit.