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1. Don't rush to cut losses
When investments are stuck, don’t rush to sell. As long as the funds allow, it’s okay to temporarily observe the market changes. Market trends are cyclical and there may be opportunities for reversal. Remember, the losses before selling are only on paper and have not actually occurred.
2. Set stop-loss and take-profit
Set a stop-loss bottom line for yourself. When the losses reach this bottom line, decisively sell to stop the losses. This can prevent further losses from expanding. After stopping losses, you can wait for the market to pull back to a better position, then re-enter the market, using new trades to make up for previous losses, or even achieve profits.
First, many do not grasp the basic trading skills. It is emphasized repeatedly that trading must come with take-profit and stop-loss orders; the vast majority of investors do not have this habit. Investment is not speculation; it should be rational investment under the premise of controllable risks.
3. Every morning, open major financial websites to see the trading suggestions from Jin or Zhang or Li. If you follow Jin's suggestion today and it’s wrong, you switch to Zhang's tomorrow, and if you follow Zhang's suggestion, it will be wrong too. The day after tomorrow, you start to hesitate, and the result of hesitation has only two outcomes: one is wrong,
4. the other is missing out! It's true that following a teacher's trades is not a problem, but the problem is you need to know why each trade is made?
The timing of entry is crucial, but the timing of exit is even more exquisite. Choosing the right entry point is only the beginning; when to exit to harvest profits and timely stop losses is the key point that determines success or failure.
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