Minimizing losses is the fundamental guarantee of long-term profit. So in order to minimize your losses, any order must have a stop loss.

Accept the failure and turn your attention to the next transaction as soon as possible. Dream weaving content management system

No one in this world can guarantee that every transaction is profitable, so when you lose money on one transaction, forget it as soon as possible and turn your attention to the next one. Otherwise, you will lose more and more. Dream weaving content management system

The scale of the transaction is controlled within the range of losses you can bear.

Although we all know that it is foolish to trade more than we can bear, this stupidity is still very common among us traders. The purpose of trading crude oil is to improve the quality of life, so don't use money that shouldn't be used, such as monthly living expenses and pension savings, and don't borrow money to trade crude oil. Because if you do this, your mentality will be the same as that of ordinary gamblers, and the final result is usually nothing.

4. When your transaction is profitable, protect the profits you have won.

Protecting your profits is another important factor for you to obtain stable long-term profits. When you are in a profitable position, it is very important to raise your stop loss point accordingly. In this way, although you want to hold this warehouse for a longer time and get more profits, at least your minimum profit is guaranteed.