Profit retracement protection strategy for currency trading:

After you buy a certain currency, in order to effectively manage profits and reduce risks, you can follow the following retracement principles:

1. Once your investment profit reaches more than 10%, you should start considering implementing a principal protection strategy. This means that if the currency price subsequently falls back to your purchase price, you should immediately and unconditionally sell it to protect your principal from loss.

2. If the profit reaches about 20%, you should set a minimum profit target. In this example, you can stipulate that at least 10% of the profit must be retained before considering selling. This means that unless the currency price falls back and causes your profit to drop to only 10%, you should continue to hold it in order to pursue higher returns. Of course, if you have a deep understanding of the technical trend of the market and are sure that you have reached a stage high, you can sell it in advance without this restriction.

3. If profits continue to grow and reach 30% or more, you should further adjust your selling strategy. At this level, you can set a higher profit protection line, such as retaining at least 15% of the profit. In this way, even if the market pulls back, you can ensure that most of the profits are retained.

The core of this principle is to protect your profits by setting reasonable profit retracement points when there is not enough technical judgment to accurately predict the market highs. It allows your profits to roll over and grow in market fluctuations while reducing the risk of losses caused by sudden market reversals.