There are two red lines that you must never cross in trading:
The first one: Never let a small loss turn into a big loss. Small losses are the cost of trading, and it is normal to make mistakes, but big losses are fatal. You have to learn to control losses and avoid a transaction that directly destroys your account, so that you have no chance to turn over.
The second one: Never let a big profit turn into a loss. In simple terms, don't let the cooked duck fly away. How many opportunities are there to make a big profit? Maybe once a month. If you make a big profit but don't protect it well, and the profit drawdown is big, then you have worked in vain. Assuming that your winning rate is 50%, and the other four times are small profits or break-even, you have to rely on this wave of big profits to make up for the losses. Only by protecting the profits can your account curve spiral upward and slowly recover from the losses. Do you understand?
