Let’s do the math. Under normal circumstances, we defend between 1000-1200 points (the recent fluctuations are quite large), and take profit above 1500. Even if our accuracy is fifty-fifty, overall we can at least ensure we don't lose money.

But if you don't cut losses on the wrong trades and hold onto them, while taking small profits on the right trades, even with a 70% win rate, you will still incur losses. This is why, even if I lose on one trade and win on another, the overall result is still profitable. Controlling the risk-reward ratio is extremely important.

This Monday, we publicly announced a long position at 96800 and today a short position at 93000, resulting in a total loss of 2200 points. However, the long position announced yesterday at 92500 directly achieved 2000 points, and the profit from one trade can even offset the losses from two trades, not to mention the 1700 points gained from the short position at 94200 yesterday. This simple math problem is understandable to everyone, and I have always emphasized the importance of strict defense. Losses are not scary; what’s scary is holding on when you are wrong.