Why Are Stable Profits and Stable Losses Both Hard?
It’s actually quite difficult to liquidate your position., today we pretend to be newbies and see how we can blow up an account. First of all, let’s talk about heavy positions. Novices will only place heavy positions when they think the opportunity is very good. Moreover, they are very timid and will run away after making a little profit. If they can’t hold on, they will not immediately liquidate the position. Moreover, because the position is very heavy, even if the position is liquidated, you can still keep a lot of margin. Let's talk about going against the trend. Everyone knows that 80% of the market is in the middle, which means that as long as you are 80% confident, you can get it back. Finally, let’s talk about stop loss. Most of the investors do not know what stop loss is. Some big-name trading software does not even have a stop loss function. Those people have not liquidated their positions. Eight years later, the bull market has restarted, and they are still good people.
So how can you blow up an account? You have to meet the following conditions.
First: Your luck must be bad enough that you lose money as soon as you enter and never rebound to the opening price. Otherwise, most people will unwind when they get their money back.
Second: Never stop the loss. If you stop the loss, the story will be over. It’s not fun.
Third: If you lose on the hourly line, go to the hotline for support. If the hotline support breaks, go to the weekly line for support.
Fourth: Cover up your position every time you reach a support level. If you cover up your position twice and rebound by half, you will get your money back. If Wuchang rebounds twice and it rebounds 30%, you will get your money back. The more you cover, the easier it will be to recover your money.
It feels like victory is right in front of you, but you have forgotten the first point. Your luck is bad enough. It is so bad that every time you cover your position, you fail, and then you can explode. How difficult it is. As the saying goes, short-term changes to medium-term and long-term, heavy positions are carried against the trend, floating losses are increased, and reversals become famous in the trading market. Therefore, stable profits are as difficult as stable losses.
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