Key Response Strategies After Entering a Trade

1. Control Trial and Error Costs

After entering a trade, the primary task is to minimize trial and error costs, which means setting a reasonable stop-loss level.

Once faced with a reverse market trend, the preset stop-loss level can effectively limit the range of losses, reducing the cost of trial and error to a minimum.

2. Ensure Principal Safety

When the overall market trend reverses, even if the individual trade itself shows no abnormalities, one must decisively exit to protect the principal.

When the market environment changes significantly, individuals may find it difficult to fully withstand the risks; protecting the principal is paramount, and one can re-enter when the market warms up again.

3. Lock in Reasonable Profits

If there are no drastic changes in the market, follow your own trading logic to hold the position, until the trend reverses before exiting, in order to achieve reasonable profits.

This approach not only allows for continuous profit accumulation but also enables timely exit.

After entering a trade, repeatedly practicing these three measures is essential for maintaining a steady trading path.