Trading earns small profits and incurs large losses, where is the root cause? ? ?
1. Not setting stop losses, small losses drag into deep traps, a single mistake wipes out multiple profits.
2. Not taking partial profits, running at small gains, missing out on big trends, profits are always elusive.
Stop loss is the bottom line; cutting losses can preserve capital; taking partial profits can lock in some gains without missing the trend. Doing these two things well can reverse the imbalance between profits and losses, allowing profits to outpace losses!
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