When there is a floating profit in the position, should you choose to lock in the profit or continue to hold it? This is a question that everyone often asks.
If you continue to hold it, you may miss the opportunity to stop profit, or even the floating profit order will be swept out at a loss.
If this kind of mistake happens frequently, it will greatly destroy the confidence in trading.
Or after the profit is stopped, the market continues to rise/fall, and later it is found that the profit should have been a big one, but in the end only a little profit was obtained, which is a pity!
After several such mental fluctuations, the subsequent mentality will also change, resulting in the inability to hold the floating profit order, so that the order that should have made a big profit is often only a little.
Tracing its root cause, this is caused by not finding your own way of stopping profit, that is, not formulating the profit-stopping rules.
Let me first talk about my personal point of view on profit-stopping:
The essence of profit-stopping is actually to pursue the maximization of single profit and the minimization of risk.
So what is the point of profit-stopping?
Once the order is done right, see if it breaks the current trend. If the trend is always there, keep holding it and expand the profit.
It is difficult to guess the future market changes. You can only see whether the current trend is broken. Grasp what you can grasp and don't think about what you can't grasp.
Most of the profits from trading are made from a small number of orders. When you encounter such opportunities, you must be good at grabbing them.
Or support or pressure, as long as it is still effective, what you need to do is to be patient, continue to hold positions, and expand single profits.
Knowing the essence and key points, and then formulating a basis suitable for your own positions, it is relatively easy to hold floating profit orders.
Stop profit is to use trend indicators to track the short-term trend of the market.
If the short-term trend is not broken, continue to hold. If it is broken, stop profit and clear the position.
Don't think that every order can make a lot of profit. Whether you can get more profit is determined by the market.
What you can do is to formulate reasonable rules. If the market is unfavorable, the loss is small, and if the market is favorable, the profit is the largest, which is enough!
If you do more floating profit first and then don't stop profit, continue to hold, and continue to hold when the market falls later, then there is a high probability that you will lose a lot of money.
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