High-level loss management that beginners must learn!
The first thing to do is to protect the safety of your principal.
When your trade starts to be profitable, adjust the stop-loss to the entry point (near the position price), so that even if the market reverses, you can avoid losing the principal, which can reduce psychological pressure.
2. Take profits and secure them in your pocket.
If the market continues to move in your favor, you can gradually move the stop-loss up to lock in some profits. A break-even stop-loss is the first step; it ensures that you at least won't leave empty-handed.
3. Always prioritize stop-loss,
Persistently setting a break-even stop-loss after making profits can help you develop good trading habits and avoid emotional decision-making (such as greed or fear leading to missed exit opportunities).
4. Avoid psychological burdens,
Once you set a break-even stop-loss, you don't need to constantly monitor the market, worrying about giving back profits.
5. The market fluctuates, profits must be made step by step.
The market changes rapidly, and a break-even stop-loss acts like a safety net, protecting you in the event of a sudden reversal.
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