The reason for setting up stop-profit and stop-loss is to control risks and avoid unnecessary losses. For example: If the United States fails to cut interest rates and you are in the country during the day, the market seems calm at night, but by 2-3 o'clock, you may fall asleep due to exhaustion. Suppose news of an interest rate hike is suddenly announced at 4 a.m. and you are still asleep. When you wake up at 6 a.m., you have already lost 50%. If you set a stop loss in advance, you can reduce the magnitude of the loss.
Likewise, setting a take profit allows you to profit from market moves while you sleep. If the market has multiple short-term rises while you sleep, and one of the rises reaches your take-profit level, you will not only avoid losses but also achieve a small profit. Developing the habit of setting a stop-profit and stop-loss will help prevent you from being "stolen" by market fluctuations when you are unable to monitor the market in real time.
I am Brother Gang, and I share various investment strategies for free. The bull market has arrived, don’t let yourself be just a bystander! Welcome to pay attention and let us seize wealth opportunities together.
