No 1 is your target
No 2 is your defined stop loss
There is a third option which you find… that is Trailing stop loss.
It helps you protect your gains.
(if you bought at 100 and price went upto 110 and in a minutes madness, the price fell to 92:
if you had kept an sl of 3 points and a tsl of 1 point…)
you would have lost only 1 rupee/ trade ie… from a potential 10 rupees profit, you end up with 9.
if you had no tsl but only sl… then you would have seen your 10 rupees profit turn into 3 rupee loss in a minutes rush.
I hope this clarifies.