[Must-read for Contractors] - Why do you lose more as the bull market enters?
If you lose money, keep it and sell it when it rises a little. Others have made a house or a car, but you almost lost the old hen. As a result, the more you lose, the less confident you are, which directly affects your judgment and misses the entire bull market.
Most people’s trading mentality and loss situations, let’s see how many do you have?
1. When you enter, you will lose money. You can clearly see that others are making 5 times or 10 times the profit. As soon as you enter, it seems as if the whole market is targeting you. The result of chasing the rise and killing the fall is that by this time, others have already taken a wave of profits. You just went in. If you don’t cut me, who will you cut?
2. You make money when you enter, but in the end you make a loss. There are green orders, and you don’t know how to run at the high point. All of a sudden, you lose profits, or even lose money. You could have exchanged your bicycle for a motorcycle, but in the end you only made some coffee money.
3. When the market goes down, you rush to buy at the bottom, but it keeps going down. When the market reaches a high point, you rush to short, but it takes off. Then you keep holding on, getting trapped, and adding to your positions. Your positions are getting bigger and bigger, and you are under greater financial pressure. When you are freed from the trap, the bull market has nothing to do with you.
4. Frequent trading and frequent position changes. When others buy, the price goes up, but the price you buy does not go up. Then you cut the meat and buy other people’s. As a result, when you go out, it goes up, and when you go in, it stops. Until I wonder if the market in life is always targeting you.
5. There are two major emotions in the trading market: greed for profits and fear of losses. I made 5% every day in the first three days, but every time I came out, I lost money. I always regretted that it would have been better if I had taken more for a while. Then on the fourth day, you make a profit but don't run. As a result, a profit-taking operation directly takes back the losses you made in a few days. Several consecutive losing operations will hit you hard.
6. You have no own judgment on the market. Your entry and exit are too casual, hasty and baseless. Occasionally you see a strategy on the Internet and think it makes sense, so you follow it, or you see others posting it in some group. If you feel you have made money on an order, follow it quickly. You do this kind of transaction without any plan. You don’t know what the trading logic behind others is, whether others have planned it in advance, or even if they cooperate with the banker. It's like cutting leeks. The time you enter the market is already the time when others come out, and you just deliver it to your door.
So how do you solve the above problems? If you want to make money in the market, you need several elements. Do you have them all?
1. Have a complete trading system and trading strategy
Every trader cannot guarantee that he will make every transaction correctly, nor can he predict and determine the trend of the market. However, having a complete trading system can guarantee the winning rate and profitability of successful transactions after a certain number of transactions. Ensure the overall profitable outcome of the transaction through strict risk control. We do not guess the market or judge the trend. We rely on this trading system to formulate and output a complete trading strategy in order to achieve positive returns.
This trading system has been reviewed and verified for at least 3 years, with an average of more than 100 transactions per year (the total number of reviewed transactions is not less than 300). It has been involved in actual trading for more than one year and is profitable, which determines that we can provide stable output for everyone. Profitability.
2. Reasonable position management and stop loss logic
Divide your capital into several parts and allow a certain amount of normal losses. Every trading system will have a loss cycle. This loss cycle is a great test for traders. Only by using reasonable position management can you hold on to the order when you lose money, without fear in your heart. Overcoming the fear in your heart is the only way to turn the unknown into the known. You are not afraid of setting a normal stop loss. You may make a profit once after losing three times.
3. Reasonable trading mentality
If you don't pursue getting rich quickly, don't carry large orders, and don't have a margin call, you have already outperformed more than 90% of people. Just imagine, a 5% profit every day, the compound interest for a month is also quite considerable. But if you have a margin call once, then your chances of turning around will be further and further away from you.
I hope this article can be helpful to you, let’s encourage each other, and wish us that in 2024, we will build up mountains of soil and start a prairie fire! Contracts are flipped every day! Lots of stock in stock!
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