$AIA

In trading, earning small profits and incurring large losses, where does it originate from???

1. Not cutting losses, small losses drag into deep positions, one mistake wipes out multiple profits.

2. Not taking profits in batches, running away at small gains, missing out on big market movements, and never fully understanding the profits.

Stop-loss is the bottom line; cutting losses can preserve the principal. Taking profits in batches can lock in some gains without missing out on the trend. By doing these two things well, you can reverse the imbalance between profits and losses, allowing gains to outpace losses!