Why do people hold onto losing trades but can't hold onto profits? 🔥🔥
The key is that trading often goes against human nature. To make money, one must do the opposite; do you understand?
Many people show patience and the ability to 'hold their position' only when they are stuck in losing trades, but the cost of this is high. In reality, they should decisively cut losses and quickly close their positions to minimize losses.
If the trend is truly your friend, why operate against it? Imagine that operating against the trend is like standing in front of a speeding train! Therefore, when you consider establishing or holding a position, hesitating on whether to close or increase your position, think from a different perspective: going with the trend is a friend; operating against it is like facing a train! How would you choose?
Trading experts can find relatively certain and graspable opportunities from seemingly uncertain and random market fluctuations. They know when the success rate of trading is the highest, when the risk-reward ratio is optimal, and when to retreat and wait for changes.
In trading, it is important to clarify what kind of market can make big money, what kind can only make small profits, and what kind will incur small losses. These seem simple, but many people have not figured them out. Otherwise, they wouldn’t trade blindly every day. When you clearly define your profit and loss boundaries, after going through several rounds of practice, you will understand the essence of trading. What you can do is actually limited; more often, you need to patiently wait.
Recently, I've been focusing on the potential coin puppies in the Ethereum chain, friends who are interested can continue to follow.
