Effective Money Management: Stop Loss and Take Profit

Niti998

Put simply, here's an example:

You enter with 5 chips every day and bet 1 chip flat.

Your stop loss is set at 5 chips.

There's no stop win, but there's a profit-locking mechanism.

The minimum profit to lock is 1 chip, but the first 1 chip of profit is not locked. Starting from the second 1 chip of profit, you lock it and exit when your profit drops back to 1 chip.

However, if you initially win 2 chips and then lose 1 chip, you lock in the 1 chip profit and exit. If you win 3 chips, you lock in 1 chip profit, and so on. For example, if you win 4 chips, you lock in 2 chips and exit. If you win 5 chips, you lock in 3 chips and exit. If you win 6 chips, you lock in 4, and so on.

You can keep your profits when you win, and you won't risk losing what you've already won. With this kind of money management, if you set a limit on how many rounds to play each day, I believe you'll never face a depleted bankroll problem.

Jiger955

"Makes sense; let's hope we can all implement stop loss and take profit strategies."

Kamal531

"Proper money management is still very necessary; it can make a world of difference when done right."

Kahn332

"That's true, but many people struggle with it. Let's learn it gradually."

Kalkin995

"Yes, it's important to know when to lock in profits and, even more crucial, when to stop losses in a timely manner. By doing this consistently over the long term, you won't encounter unfavorable outcomes, and you won't deplete your capital."

Pooja193

"Setting stop loss and take profit isn't as easy as it sounds."