12.22 Review of Taking Orders "Must Watch for Fans"
I am a trader who pursues a high reward-to-risk ratio, with a win rate of only 20%-30%. When the market is good, it may reach 40%-50%, and I often use small stop losses to experiment; stop losses have become "my trading habit," just like eating, it's essential.
However, for instance, the probability of a direct drop after my bearish stop loss is relatively low, and the probability of a direct rise after my bullish stop loss is also relatively low.
When I trade, I am not afraid of stop losses, but today I found that "I am somewhat afraid of stop losses when I take orders."
The main reason is that after a stop loss, there will be many questions from everyone, and for example, the trades over the past couple of days have also continually hit stop losses, but in reality, the actual stop loss orders = 3 orders because I entered at two critical levels, such as today’s bullish view near 3360 and near 3310. The first level at 3360 is not very critical and can be attempted for trial and error, while the second is the formation position of the rising channel, which is also the key position for bulls to counterattack. "Although I didn't hit the stop loss, some fans asked why I entered at this position when the MACD had a death cross."
Although our direction was wrong earlier, our drawdown was not significant = "9%", it should have been 5%. However, I took a somewhat casual bearish position at the breakout on the right side and got stopped out.
So if everyone cannot accept trading with a high reward-to-risk ratio and low win rate, then you can exit the follow-up trades. Otherwise, every time I hit a stop loss, I have to face a lot of information. I only follow my trading system, and my trading system has been refined through countless trials.