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There is a famous saying on Wall Street that "cut losses and let profits run." How should this sentence be realized in the stock market?

Buying is based on the judgment that the price will rise at a certain position and it is a profit expectation.

When the price starts to rise as expected after buying, you should hold the stock and let the profits expand with the growth. The greater the increase, the higher the profits. After buying, the price did not start to rise as expected, but turned down, indicating that there was a problem with the expected rise. The purchase failed. At this time, you should stop the loss and leave the market, and the loss will be controlled to a very small range. Within, and will not cause large losses to the principal.

Profits will increase on a rolling basis when the price rises, but only a small loss will occur when the price falls, so that the final compound profit will be a positive number.

So, sometimes the accuracy is not the most important, but learning to hold positions and stop losses is the most important. However, reasonable stop loss and take profit require a long period of technical exploration.