Record why to take profit half of the earnings, and set the remaining to stop loss at breakeven. My explanation is that there are two types of trades: one is ultra-short, where you take profit and run when you hit the profit point, and the later market trends can lead to big losses. The other is to reach the target level, but in the meantime, if the market reverses before reaching the target, profits are not locked in and ultimately lead to losses at stop loss. The solution is to combine these two approaches: first take profit half to lock in profits, and for the remaining, aim for the target level; if the target level is not reached, then set to stop loss at breakeven.
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Record why to take profit half of the earnings, and set the remaining to stop loss at breakeven. My explanation is that there are two types of trades: one is ultra-short, where you take profit and run when you hit the profit point, and the later market trends can lead to big losses. The other is to reach the target level, but in the meantime, if the market reverses before reaching the target, profits are not locked in and ultimately lead to losses at stop loss. The solution is to combine these two approaches: first take profit half to lock in profits, and for the remaining, aim for the target level; if the target level is not reached, then set to stop loss at breakeven.