Many traders have encountered this problem. After finally making the right trade, they either regret having a light position or regret closing the position too early. After experiencing such situations, we should review our entire process to understand what mindset or reasons led to this outcome, and then seek solutions.

Trading → Feedback → Adjustment → Re-trading → ... This is a continuous iterative process. Every trader will lose money, but you need to find the reasons behind your losses, and then address them. If you can't even identify the reasons for your losses, how can you expect to improve and progress?

If a person is mentally confused and hasn't thought things through, their trading will definitely be random, making it easy to not hold onto positions. However, if you have clarity in your thinking and clear goals, execution will be easier and more decisive.

For example, when entering this trade, you need to determine whether you want to go for a big win or just take a small profit. You need to think clearly. If you want to go for a big win, then you need to find a very favorable position. Once you capture a good entry point and it gives you some floating profit protection, you can move the stop loss to the breakeven point to ensure this trade remains undefeated. You don't have to worry about subsequent pullbacks as long as the stop loss is not triggered; you should hold firmly, because you are going for a big win, not just to make a small profit. If the market pulls back, you shouldn't run away.

On the contrary, if you aim to make a little profit and then stop, you can choose to actively take profits. However, it is important to note that your take profit should be at least 1 times the distance of your stop loss to consider taking profits; otherwise, if the risk-reward ratio of the trade you enter is less than 1:1, that trade is not appropriate. Even if you specifically conduct trades with fixed risk-reward ratios, it is best to have a 1:2 active profit-taking strategy. If the distance to take profit is greater than that of the stop loss, then that trade itself should not be participated in.

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