Why are stop-profit and stop-loss so important in trading?

I have always emphasized that you must always remember stop-profit and stop-loss, because this is the cornerstone of risk management and can protect capital from major losses.

Only by setting a reasonable stop-profit point can you lock in profits and avoid missing out on existing gains due to greed; while the stop-loss point limits the maximum loss of a single transaction and prevents an unfavorable transaction from having a serious impact on the entire account.

In addition to improving trading efficiency, stop-profit and stop-loss also enable people to adapt to market changes and adjust strategies in a timely manner.

Most importantly, stop-profit and stop-loss help traders survive long-term market fluctuations and achieve steady capital growth, rather than pursuing short-term, high-risk profits.

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