take profit，stop loss

In the world of investment trading, take profit and stop loss are two unavoidable topics, which one is more difficult, take profit or stop loss?

Stop loss, in plain terms, is to cut loss. When the market trend does not match our expectations, it is very important to stop loss in time. But it is really difficult to do this. First of all, stop loss means admitting one's judgment error, which is psychologically difficult for many people to accept. Secondly, stop loss involves actual losses, and the feeling of watching one's money decrease little by little is real. Finally, the uncertainty of market fluctuations also makes stop loss difficult to grasp. Sometimes, just as you stop loss, the market reverses, and the feeling of being slapped in the face is really uncomfortable.

Take profit, it sounds like a happy thing, but it's not that easy. When making a profit on investment, many people are greedy and hope to earn a little more, often missing the best take profit opportunity. In addition, when the market trend approaches the expected take profit point, many people worry about a sudden market reversal, leading to profit loss. This fear also makes it difficult for people to decisively take profit. Finally, the uncertainty of market trends also makes take profit difficult to grasp. Sometimes, you think the market will continue to rise, but it suddenly falls, which also causes a feeling of being caught off guard and is very distressing.

I believe many people, especially novice investors, have encountered the same problem, so what should we do?

1. Develop a trading plan: Before each trade, be sure to develop a detailed trading plan. This plan should include key elements such as the buying price, selling price, stop loss point, and take profit point.
2. Reasonably set stop loss and take profit: The setting of stop loss and take profit should be based on your risk tolerance and market conditions. There are many specific methods, such as fixed ratio method, dynamic stop loss (take profit) method, technical indicator stop loss (take profit) method, etc. Regardless of the method used, the generally accepted maximum stop loss point is 10%. The take profit point can be set slightly higher, but it should also be reasonable to avoid being too greedy.
3. Keep calm and rational: The most important thing in investment trading is to stay calm and rational. Do not be swayed by short-term market fluctuations or influenced by your own emotions.

In this Internet age, it is easy to learn various investment techniques and trading models. However, I believe that the most important are discipline and mindset. There may be an opportunity to specifically discuss this. Whether it's take profit or stop loss, investors need to have good psychological qualities. It is recommended to start with aspects such as developing a trading plan, setting stop loss and take profit reasonably, staying calm and rational, and flexibly responding to market changes to gradually improve their trading abilities.

The above are some superficial suggestions shared with everyone, welcome all "leek friends" to leave comments in the discussion area
‍#止盈 #止损  #交易心理 #交易技巧