It is still the column "Do not let the knife fall", today I share the reasons why I advise you like that.
Many brothers and sisters participate in the market with the mindset of wanting quick profits, gambling, and certainly 80% of them lose more than they gain; some go completely broke, while others hold onto losses without ever seeing a return.
The problem lies in risk management (an important factor that helps you earn money from the market), which no one mentions. Managing risk is about how to avoid losing too much of your capital; in case of losses, there is still a chance to recover because our relationship with the market may not be just 1-2 years, but much longer.
How to manage risk reasonably depends on the individual, but for me, in a sideways market phase, I usually only deploy 20% of my capital. The remaining 80% I reserve for the market's upward breakouts. And my investment strategy is to only buy when the market establishes price bases, avoiding purchases during significant downward movements without any market base.
Due to this investment approach, I always ensure that my losses only account for 10-15% of my capital, avoiding unnecessary risks and achieving a profit level of around 80% this year. Although it is not much compared to some people, it is stable and oriented towards the long term.
I hope this article will help you recognize many issues in your own investment approach.
