Making small profits and big losses in trading, where is the root cause? ? ?
1. Not cutting losses, small losses lead to deep entrapment, a single mistake wipes out multiple profits.
2. Not taking profits in batches, running away at small gains, missing out on big trends, profits always seem elusive.
Cutting losses is the bottom line; stopping losses can preserve capital; taking profits in batches can lock in part of the gains without missing out on the trend. Doing well in these two aspects can reverse the imbalance between profits and losses, allowing profits to outpace losses!
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