Why do so many people like to increase their positions with floating profits? Simply put, it means to continue to increase your positions when you have made money. This is also called rolling positions, which can quickly increase your funds. Let's talk about how to operate it.
Take buying reef as an example. You use part of your money to buy some reef at the beginning. After a period of time, the price of reef goes up, and then you have a profit in your account. If you think the price of reef will continue to rise in the future, then you can consider increasing your positions with floating profits.
For example, you buy a certain amount of reef at the beginning, and when the price of reef rises, you have a profit in your account, then you can take out some more money and continue to buy reef. In this way, if the price of reef continues to rise in the future, you will make more money.
However, there are risks in increasing your positions with floating profits. If the market conditions suddenly change and the price starts to fall, the part you increase your positions later may lose money soon, and you may even lose all the money you earned before. Therefore, when increasing your positions with floating profits, you must carefully judge the market trend and do a good job of risk control.
First of all, you have to have a deeper understanding and analysis of the market. Look at various technical indicators, market news, etc., to determine whether the market will really continue to move in a direction that is favorable to you. If it is just a short-term price fluctuation, but you mistakenly think it is a big trend and rashly increase your position, it will easily go wrong.
Secondly, you must control the proportion of increasing your position. You can't use all your money to increase your position at once. You have to reasonably arrange how much money you can increase your position according to how much risk you can bear and the market situation. For example, you can only take out a certain proportion of money to increase your position each time, so that even if there is an unexpected situation in the market, your loss will not be too large.
In addition, you have to set a stop loss. If the market trend is not what you think, and the price falls to a certain level, you have to stop the loss quickly to prevent the loss from getting bigger and bigger.
In short, increasing your position with floating profit is a risky but also high-yield operation method. When doing this operation, you must carefully analyze the market and control the risk so that you can make more money.