There is a very important principle in trading: don't make small money, don't lose big money.
Although this sentence is only eight words, it is very difficult to really do it.
For example: you opened an order with 20,000 yuan, and the price rose to 21,000 yuan. You are very happy, stop profit, and earn 5%. However, the market continues to rise to 25,000 yuan... You earn 5%, but miss 50%.
So, you warn yourself to make big money and resolutely not stop profit next time. The market returns to 20,000 yuan, you open an order again, and the price rises to 21,000 yuan. This time you warn yourself to learn from the last lesson and hold on. But the market falls back to 20,000 yuan, and even falls below 19,500 yuan, so you have to stop loss.
This is really difficult! Many people have been constantly switching in this dilemma all their lives, and they can never get out of it.
Is there a way to make money in both big and small markets?
No, you have to choose one of the two. I usually choose not to make small money.
I can't actually do what I said 100% myself, no one can do it completely. But I can tell you the correct concept, how much you can do depends on your personal cultivation. Each of us can only improve the realization ratio of this concept as much as possible.
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