Didn't keep up before the rise, didn't run away before the fall

In fact, there is nothing wrong with the strategy of chasing the rise and killing the fall! The real reason for losing money is: 99% of retail investors will make a mistake - they can't hold the trend orders, and they hold the counter-trend orders.

Can't hold the trend orders: Many people hold the mentality of "quit when you see the profit, and take the money for safety". Okay, if you decide that this is your last order for speculation, and you swear never to enter the market again after you take the profit, then I support you to do so. But if not, you are actually looking forward to being able to sell at the highest point every time, and then the stock price starts to fall after selling, and then buy the bottom, and so on. This is a bet on a very small probability event. Often more often, the order is sold, and the market starts to enter the next round of pull-up, but it has nothing to do with you.

Holding the counter-trend orders: Many people are unwilling to stop loss when they encounter a counter-trend, and always hold the hope of a rebound, but they get deeper and deeper. This mentality will lead to greater losses because you ignore the market trend and risk management.

How to avoid these mistakes?

First of all, we must recognize the situation and ourselves. The purpose of coming to this circle is to change your life. Please build a complete plan for yourself:

When to buy? Determine the entry point, which can be determined based on technical analysis, fundamental analysis or market sentiment.

When to sell? Set clear target prices and stop-loss prices to avoid emotional operations.

What to buy? Choose assets that you are familiar with and have studied in detail, and avoid blindly following the trend.

What is the strategy? Develop a clear trading strategy, such as chasing ups and downs, trend tracking, etc., and strictly implement it.

How to do risk control? Reasonably set stop-loss and position management to avoid one-time large losses.

In trading, mentality and discipline are very important.

Create a trading log: record the reasons, processes and results of each transaction, analyze and summarize, and continuously improve.

Emotional management: Avoid emotional trading, stay calm and rational. Trading is a long-term process, don't be affected by short-term fluctuations.

Learning and improvement: Continue to learn market knowledge and trading skills, and constantly improve your ability and level.

If you want to get more information and operation strategies in the currency circle, click on my avatar to find more information and guidance.Let’s grow and profit in this market together!