Core Principles of Trading:
1. Stop Loss: The key to stop loss is to control the losses caused by directional errors, ensuring they are within a range you can bear. The purpose of a stop loss is not to resist losses, but to cut losses in a timely manner to avoid larger losses.
2. Take Profit: Take profit should be seen as a protection of floating profits, not a blind pursuit of a specific "highest" or "lowest" point for closing positions. Remember, market trends are complex, and you cannot accurately predict every fluctuation!
3. Increasing Position/Rolling Position: Follow the trend, and be cautious with counter-trend operations. When there are existing profits, you can appropriately increase your position and move the stop loss of the original position up to ensure that the profits already obtained are not given back. The new position also needs to set a stop loss, with specific points determined by personal judgment. In short, follow the big trend and be cautious with the small trend.
