Share why it's essential to learn how to set a breakeven stop-loss in profitable situations:
1. Protect capital and reduce risk
When your trade starts to profit, adjusting the stop-loss to the entry point (near the position price) ensures that you won't lose your capital even if the market reverses. This greatly reduces psychological pressure, allowing you to face market fluctuations more calmly.
2. Lock in some profits
If the market continues to move in your favor, you can gradually raise the stop-loss to lock in some profits. A breakeven stop-loss is the first step; it ensures that you at least won't leave empty-handed.
3. Cultivate discipline
Consistently setting a breakeven stop-loss after making a profit helps you develop good trading habits and avoid emotional decisions (such as greed or fear leading to missing exit opportunities).
4. Reduce psychological burden
Once you set a breakeven stop-loss, you don't need to constantly monitor the market worrying about profit retracement.
5. Adapt to market uncertainty
The market is ever-changing, and a breakeven stop-loss acts like a safety net, protecting you in case of sudden reversals.
