In trading, when we enter a stock, we place both a stop-loss order and a target order. However, most of the time, the stop-loss gets triggered easily, while the target is rarely hit. Do you know why? After buying any stock, the target is set above the entry price, typically a few percentage points or based on the risk-to-reward ratio. The target is often much farther away than the stop-loss.The stop-loss, being set at a lower price, is more easily triggered because it's at a discounted value. From that point, the stock often bounces back. The target, on the other hand, represents a higher value, which will only be reached when someone considers it a fair price to buy.This is why, instead of waiting for the target to be hit, it’s better to book profits when the price comes close to the target. You'll never go broke by taking profits