Earn small profits and incur big losses in trading, where is the root cause???
1. Not cutting losses, small losses drag into deep traps, one mistake wipes out multiple profits.
2. Not taking profits in batches, running away at small gains, missing out on major trends, and never fully realizing profits.
Cutting losses is the bottom line; stopping losses can preserve capital; taking profits in batches can lock in some gains without missing the trend. If you can do these two things well, you can reverse the imbalance of gains and losses, allowing profits to outperform losses!