In trading, there is a very critical principle: don't be greedy for small gains, and don't take big risks. This principle seems simple, but it is actually very difficult to do.
For example: you opened an order at a price of 20,000 yuan, and as soon as you opened it, the market rose to 21,000. You were very happy, so you decided to stop profit and made a 5% profit, which felt great.
However, the market continued to rise to 25,000 yuan, which means that although you made 5%, you actually missed 50% of the profit. So you warned yourself that you must make a lot of money next time and decided not to stop profit.
Then the market returned to 20,000 yuan, and you opened an order again, but the result was the same: the price rose to 21,000 again, and you warned yourself not to repeat the same mistake and make a lot of money.
Finally, the market returned to below 20,000 yuan, and you had to stop loss. Many people have been wandering in this dilemma all their lives, unable to get out of the predicament.
So, is there a way to make money in both big and small markets? The answer is no. You have to make a choice, and I usually choose not to lose a lot of money.
I say this but it doesn't mean I can do it 100%. In fact, no one can do it 100%. Just like a man can watch less pornographic websites, but he can't stop watching them.
Each of us can only achieve a certain degree of these principles, but we can work hard to improve this degree.