Today we are going to talk about strict stop loss and insisting on betting. This wave of sharp decline was within the prediction of Vitalik Buterin, so it also prevented some people I know from losing money. Some people opened orders against the trend and came to ask how to deal with it. I just told them to close the position and leave, avoiding further losses.
At the same time, I recently looked at the trading records of a trader who made thousands of times the profit on Coin. There are two most important points about him. One is strict stop loss, and the other is that when he finds a key market opportunity, he must sit in front of the computer, which means that he protects his attention on the decision-making line.
Strict stop loss is the daily routine of an excellent trader. Let's talk about it today.
1. Why don’t people use stop loss?
The aversion to loss is at work. The lack of a big loss or a broken leg is at work. There is a fluke mentality about the future direction of the market.
2. Why is strict stop loss necessary?
Strict stop loss can control the loss within a limited range. You can only control how big your loss is, and leave the profit to time. Second, it can avoid that when the opportunity comes, you have a floating loss position that occupies your funds and affects your mood.
3. How to formulate stop-loss principles?
First, the loss of a single transaction cannot exceed 2% of the principal, and the loss of three consecutive transactions cannot exceed 6% of the principal. If you are sure that there is an all-in market, then bet according to the loss of 6%.
4. When will the stop loss be triggered?
One is to trigger the 2% or 6% stop loss line, and the other is that when you find that the transaction does not conform to the principles and logic, you must run away, because drinking poison will not quench thirst.
5. Why do you insist on betting?
Trading is a trial-and-error game of probability. For any trading system or trading model, there will always be some bets that work out and some that don't. You can't stop betting just because a few bets didn't work out.
As long as this model or system has a positive EV calculated from the probability after multiple bets, then just keep betting.
For example, for trend traders, when the signal defining the starting point of the trend is issued, not every transaction can be completed, and some continue to fluctuate. But you have to insist on betting, otherwise you will miss a very lucrative trend market.
The bull market is still going on. If you are not sure how to plan, you can find me through the pinned articles. I am willing to share my experience and strategies with you. Let us get rich together!!!
