Win the War, Not the Battle
By cutting out “emotion” of the equation. The Stop Loss and Profit Target is extremely easy - as long as you have significant self control.
Whenever you trade, invest and everything in between, have a fixed, rational cut-off. Sell/stop the moment you hit that point. It is truly that easy.
E.g.
![]()
An active trader : > 5% level
![]()
Long-term investor : 15-20% or more (depending on your risk appetite)
The only reason to not stop - is purely driven by emotions.
Knowing when to cut your losses literally means overriding the irrational part of your brain.![]()
Profit Target is equally easy. When I invest, I have a target in mind - if I exceed that special number, I will take out my profit which I wanted to make. And, let the profits run it’s course. Will it continue to soar to the Moon![]()
...? Awesome if it does, but no problem, I got what I wanted anyway.
It's not about how to program an automated trading algorithm. The phrase is more about psychology. Traders are more likely to be tempted to realize profits earlier than it’s optimal or to hold onto losing stocks in the hope they bounce back. This has more to do with how people think than technical details. Don't overthink it.
A Profit Target or an Exit Strategy? YES, you do need to take profits eventually. While profit-taking should not be concluded by staring at your account's unrealized gains column, you ought to have some sense of where and when momentum's dried up or sentiment's changed. That's when you need to re-assess or get out.
I am up 200% on $NVIDIA(NVDA.US$ stock.![]()
Should I take profits?![]()
What’s my pick?![]()
Should I go long, into 2022?![]()
$NVIDIA(NVDA.US$ seem to have a bright outlook and profits are really growing.
However, that’s how trend trading works in principle, and yes - I could hypothetically hold a profit forever (if the market stayed green forever). NO - cancel that; at some point, I would![]()
to cash out and buy myself an island - maybe Tasmania… ( totally kidding, I don’t have that much Nvidia ![]()
)
![]()
Do remember, Stop Loss or Profit Target - It is not about winning every battle. It is about winning the War.
Whenever you trade, invest and everything in between, have a fixed, rational cut-off. Sell/stop the moment you hit that point. It is truly that easy.
E.g.
The only reason to not stop - is purely driven by emotions.
Knowing when to cut your losses literally means overriding the irrational part of your brain.
Profit Target is equally easy. When I invest, I have a target in mind - if I exceed that special number, I will take out my profit which I wanted to make. And, let the profits run it’s course. Will it continue to soar to the Moon
It's not about how to program an automated trading algorithm. The phrase is more about psychology. Traders are more likely to be tempted to realize profits earlier than it’s optimal or to hold onto losing stocks in the hope they bounce back. This has more to do with how people think than technical details. Don't overthink it.
A Profit Target or an Exit Strategy? YES, you do need to take profits eventually. While profit-taking should not be concluded by staring at your account's unrealized gains column, you ought to have some sense of where and when momentum's dried up or sentiment's changed. That's when you need to re-assess or get out.
I am up 200% on $NVIDIA(NVDA.US$ stock.
What’s my pick?
However, that’s how trend trading works in principle, and yes - I could hypothetically hold a profit forever (if the market stayed green forever). NO - cancel that; at some point, I would
$Dow Jones Industrial Average(.DJI.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Hang Seng Index(800000.HK$ $Apple(AAPL.US$ $Starbucks(SBUX.US$ $Fiverr International(FVRR.US$ $QuidelOrtho(QDEL.US$ $Tesla(TSLA.US$ $American Express(AXP.US$ $Paychex(PAYX.US$ $Fortinet(FTNT.US$ $Futu Holdings Ltd(FUTU.US$ $Microsoft(MSFT.US$ $Ford Motor(F.US$ $Stitch Fix(SFIX.US$ $Lennar Corp(LEN.US$ $Salesforce(CRM.US$
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KT88 : Impressive! Thanks for sharing. Very inspiring and TRUE
HopeAlways : Let's all win the war like how you have described so well.
dwarrior : Always have a plan. Be it enter or exit
HuatLady : Yes, self control is an extremely vital element in gainful trading.
HuatEver : It is a master strategy to “win the war rather than a battle”. A practical and useful sharing.
SyueeOP HopeAlways: Definitely. Sometimes, we have to lose the battle (stop loss), in order to win the war. Let’s go forth and conquer (With our hard work, wit, grit and wisdom)!
SyueeOP dwarrior: Agree, always have a solid trading plan which suits your personal style and financial goals. Knowing when to exit a trade is just as important as knowing when to enter the position.
SyueeOP KT88: Thank you. Having a Stop Loss and Profit Target plan is indeed essential for achieving trading success. Best wishes to you.
SyueeOP HuatLady: Indeed. Self-control and Discipline are indeed the key ingredients to trading success. Best of Luck to you and Happy Investing.
GratefulPanda : Very wise words!
Indeed always keep the big picture in mind, may all of us win the war 
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