In trading, we often face a question: which is more critical, stop-profit or stop-loss? Although some people believe that both are crucial, this view often lacks specific guidance.

For short-term traders, I believe that the importance of stop-profit exceeds that of stop-loss. This is not to encourage greed or delay in taking profits, but to emphasize the importance of taking action quickly after making profits. By exiting quickly, we can ensure that profits fall into our pockets and avoid being eroded by market fluctuations.

Traders should wait patiently for market trends and then gradually enter the market. Once in the market, small losses should be accepted as part of the transaction. If the market fluctuations do not break through the preset limits, you can continue to hold. However, once the market trend is clear and profits begin to grow, you should pay close attention to the gains and take profit measures immediately when the target profit point is reached or the gains begin to retrace.

This practice may prevent us from selling at the highest point, but it has helped avoid a large retracement of gains, and there has never been a situation where profits turn into losses. By giving up the pursuit of the highest gains, more stable gains are obtained.

Confidence in trading is built up gradually. By focusing on improving the winning rate of transactions rather than short-term gains and losses, a stable trading mentality can be cultivated. A high winning rate can enhance self-confidence, and self-confidence can help maintain a high winning rate, forming a virtuous circle.

On the contrary, continuous losses can lead to psychological collapse, loss of confidence, and make investors hesitant, which ultimately leads to ineffective trading decisions.