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Both taking profit and stopping loss are equally important.

Both taking profit and stopping loss are equally important.

SENS is a medical technology company that focuses on developing and manufacturing long-term, implantable continuous blood glucose monitoring systems for diabetes patients. I have been holding SENS since June 2021, and I am also bullish on SENS' products. Regardless of its ups and downs, I hope to make a profit when its next-generation product is approved.

On February 11, 2022, SENS received approval from the U.S. Food and Drug Administration for its next-generation Eversense E3CGM system. However, the stock price plummeted on that day, turning a stock that had been profitable for a long time into a loss, which is really ironic. Reflecting on my trading strategy, I realize that I have not established a profitable trading system for stocks, nor have I developed a pre-determined profit-making plan, nor have I established a plan for taking profit and cutting loss, which resulted in the originally profitable stock turning into a loss. SENS has also made me realize that being bullish on a company does not mean blindly holding onto it without considering costs, and a good company may not necessarily be a good investment target. Of course, I should also not rely on news to speculate on stock prices and fantasize about the stock price soaring after approval. The stock market has changed a lot recently, so I will continue to follow my mentor's reading notes channel and repeatedly study and learn from Jesse Livermore, the stock market master of Wall Street, to understand the classic trading techniques, learn how to formulate trading plans, why to hold, where to set stop-loss, where to take profit, and strictly execute the established plans to avoid being wronged by the market. In general, cutting loss is relatively easy for us to do, but taking profit is more difficult. In order to consistently profit in the stock market, both taking profit and cutting loss are equally important.
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