The helmsman thinks that the rigid textbook-style stop loss and the stop loss of buying high and selling low are different ideas.
Some people the helmsman meets in life, when they make money, they shout that the genius trader has returned, but when they lose money on a single order or get trapped in a single order, these people say all kinds of nasty things.
What do you mean you are resisting orders again? What are you doing?
Let me stand up and share his stop-loss compounding logic.
The key is to try not to make invalid stop losses, and the winning rate is also very important.
But sometimes, if you buy at a critical position, and it’s wrong, but the trend is opposite, you will definitely sell it, and it will be sold very quickly.
However, there are obvious wide fluctuations, or the trend is still within one's expectations.
If you are trapped by a few points or even more, you can also use the tolerance rate to try not to invalidate the stop loss, wait for the market to lose as little as possible to stop loss, or wait for the market to return to the expected trend.
How does this theory work in practice?
Especially for shocks and bands, allow for fault tolerance
Try not to sell at a loss, even if it’s just one point, try to make money.
The buying point is very important. You must be graceful if you buy wrong. Try to wait for the market to come back and avoid making invalid stop losses.
Another key point is that losing orders should never be added to increase costs.
In fact, most of the time, the money lost is from buying high and selling low.
Blunt knife, heavy positions, and frequent stop losses.
For example, in this ETH order, the maximum amount trapped was $100,000, and in the end the stop loss was more than $20,000.
What about you? Can you bear it?
You can't stand such a big pullback. For you, it is a resistance to the order, but for him, it is an elegant tolerance of fault.
But if you have 100,000 yuan and only use 10,000 yuan for the contract, you can also be so smooth
Do you understand what I mean?
The essence of compound interest lies in tolerance, winning rate, and the ability to make money continuously.
As for the issue of resisting single orders, everyone has different opinions.
If you bet all your assets and still refuse to stop loss, this is called resisting the order.
The helmsman has occasionally done this kind of operation before. Is it possible that he will be swept away by a wave and his position will be liquidated?
Of course, any system has its own price.
The cost of this system is the extremely small probability that the account will be reset to zero.
But basically it only works when you encounter a market like a black swan
But for all his capital, even if a black swan happens, his account will only lose 5-10%.
If you short sell, you will be afraid of a short squeeze.
But before this happens
Maybe they have been making a lot of money.
A lot of money has been withdrawn, and the small account has become a big account
Fault tolerance continues to improve.
What are the expectations for small accounts?
Of course, it is to catch up with the big accounts
Suppose you make 4000+ from a small amount of capital twice
Large funds only do spot trading, and contract accounts are all small funds.
All the money he earned from his first account was kept.
So back to the core, you will find that it is the money management that allows such elegant and calm transactions.
But just managing capital positions is not enough.
You still need to have a good level and the ability to execute strategies.
From 0 to 1 is hard, but from 1 to 100 is easy
It is important to find your own compound interest system.
Compound interest requires sustained profitability, otherwise there is no meaning in making losses or gains.
Even if the profit-loss ratio is 1:1, as long as the winning rate is high enough
Over a period of time, that's enough to be an astonishing return.
Example
Even if you have little capital, you should develop good habits to do it
Even if you only have 10,000 or 20,000 yuan
It is best to use only 10% of the funds for the contract
Even if it's 10 times the price
The more profit you make upfront
In the medium term, as long as we can maintain stability
The retracement is gradually controllable
A small account will quickly surpass your own principal several times
You who continue to play with the profits
It will only become more and more calm
The curve will become more and more beautiful
As you make more and more money
The occasional big pullback is actually no longer a big deal...
