When trading, you should be rational and purposeful.
You trade when you think there will be a reversal at a certain point
1. If the trend does not reverse, it means that you will continue to suffer losses.
1-1. After a certain level of loss, the value will reverse sharply -> This means that the transaction will most likely end at a tie or with a slight profit.
1-2. After the loss, the value consolidated at a low level without any signs of rising -> This means that this transaction will cause funds to stay on the target, or withdraw funds and cause losses.
1.3. After a loss, the value returns directly to zero -> that means the funds disappear directly into the hands of others.
2. Assuming that the market reverses as you expect, it means that you will have a certain degree of floating profit.
2-1. After rising to a certain extent, the value reverses violently -> This means that the transaction will return to the cycle of 1.
2-2. After the value rises, the market continues to be at a high level -> It means that you will have a certain degree of floating profit. At this time, you can choose to take profit and leave the market or wait for follow-up actions.
2-2-1. After consolidation->2-1
2-2-2. After consolidation->2-2 etc...
2-3. The price rises sharply and a large amount of floating profit is obtained -> 2-2
At this time, you will find that if there is no stop-profit and stop-loss, the probability of loss will be much greater than the profit. This shows the importance of stop profit and stop loss.