1. Active profit-taking, active profit-taking means left-side trading, which is when I feel the price is about to peak, so I reduce my position or close it. For example, if the K-line trend deviates too far from the moving average, or if the sentiment is too heated, there is a high probability of a pullback or a peak. The advantage of active profit-taking is that if you make the right judgment, you can capture all the profits; the disadvantage is that if your judgment is wrong, you may miss out.

2. Passive profit-taking, passive profit-taking is right-side trading, which is waiting for the market to break the upward trend before taking profits. How exactly do you determine that the upward trend has been broken? For example, if it breaks below a certain moving average, you might feel that the rise has ended and a downward trend is about to begin, or it could break below the neckline (as mentioned in price pattern analysis); the advantage of passive profit-taking is that if the market is significant, you won’t miss out, but the downside is that most markets are not that significant, and often you will only be slightly late.

There is no absolute distinction between active and passive profit-taking; each has its advantages and disadvantages. There is also a pretty amazing profit-taking method called 'not taking profits.' Any logic for determining tops and bottoms has its flaws; whether it’s left-side trading or right-side trading, it’s really all about probability. You might think the market has peaked, but it actually hasn’t. For example, did you think Bitcoin would rise to 100,000 ten years ago? Or Dogecoin, SOL, etc., which have risen hundreds of times? Only by never taking profits can you capture this kind of increase. Although not taking profits can be incredible when encountering a super strong market, allowing you to achieve the maximum and most unimaginable profits—as long as you get it right, you won't have to work for years—the downside is also very obvious: 99% of the time, the market isn't that big, and most of the time, you won’t make money.