Why do we have to set stop loss and take profit?
Stop loss
If the US does not cut interest rates, you are in China during the day, and you have nothing to do at night. You stay up until 2-3 o'clock and fall asleep in a daze. Suddenly, at 4 o'clock, a news of an interest rate hike is released, and you are still sleeping. When you get up, it is already 6 o'clock, and you have lost 50%. At this time, if you set a stop loss, you can lose less.
Stop profit
While you are asleep, the market here is still fluctuating, and there are several short-term pull-ups. It just happens that one time it is pulled up to your take profit position. Not only do you not lose, but you also make a small profit.
Setting stop loss and take profit is to control the risk within an acceptable range!