How to Achieve Long-term Profit in Trading. When trading, many people cannot hold onto their positions when they are making money. Whenever they gain a little profit, they are eager to take it, while when they are losing, they cannot stop the loss in time, watching helplessly as their positions decline sharply. This back-and-forth leads to a situation where they earn little and lose much over the long term, resulting in a scenario of 'always on the road to breaking even.' The reason traders encounter this problem is that novice traders often have a short-sighted perspective—they tend to place too much weight on immediate trading results, unwilling to accept failure during losses, while being eager to prove their success during profits, resulting in the formation of two bad habits: 'holding onto positions' and 'taking profits.' However, a trader's success does not come merely from the results of one or two trades but from the cumulative results over a long period, even a lifetime. When dealing with money, it is always difficult for people to consider their trading results in the long term, which causes most people to earn little and lose much, making it challenging to achieve long-term, stable profits.

Before entering the market for trading, we must plan the range of this trade in advance and decide on the positions for taking profit and stopping loss beforehand, rather than making last-minute decisions during the holding period about when to exit. The setting of profit and loss ranges usually needs to follow certain market logic. We can use technical analysis, fundamental analysis, and other methods to speculate on the final movement distance of the trend and use this as the basis for setting profit and loss ranges. At the same time, the setting of profit and loss ratios must also adhere to certain mathematical principles. Only by ensuring that the profit expectations in each trade are greater than the loss expectations can we avoid the situation of earning little and losing much over the long term—therefore, the profit and loss ratio of each trade must, in principle, be greater than 1:1. In a market with a clear trend, traders often choose a larger profit and loss ratio to expand profits, such as 2 to 1 or 3 to 1, while in a generally poor market environment, traders will choose to compress the profit range, using a smaller profit and loss ratio, such as 1 to 1 or 1.5 to 1. The setting of profit and loss ratios is closely linked to trading strategies and market conditions, so there is no optimal profit and loss ratio or golden profit and loss ratio.