In the journey of trading, every investor has a desire for profit. However, on this road full of opportunities and hidden risks, a crucial truth is often overlooked: controlling retracements is even more important than creating profits. This view is not groundless, but comes from a deep understanding of the nature of the market and the practical experience of countless traders.

Trading is essentially an art of balancing risks and returns. On this stage, returns are certainly desirable, but risks are always around, always testing the wisdom and courage of investors. Drawdown, as a concrete manifestation of risk, is an inevitable part of the trading process. It is like a double-edged sword, which can test the psychological endurance of investors and become a bottomless pit that devours the principal.

Why is controlling retracements more critical than creating profits? First of all, from a psychological perspective, investors who have experienced large retracements often find it difficult to remain calm and rational, and are prone to panic and despair, thus making wrong decisions. This kind of emotional trading will undoubtedly further aggravate losses and form a vicious cycle. On the contrary, investors who can effectively control the drawdown can maintain a calm mentality, calmly deal with market fluctuations, and are more likely to seize real profit opportunities.

Secondly, from the perspective of fund management, the control of drawdown is directly related to the survival ability of investors. In the long river of trading, short-term losses may be difficult to avoid, but the key lies in whether you can stop losses in time when you lose money and protect the principal from excessive losses. Only in this way can you retain enough ammunition in future transactions and wait for the real profit opportunity to come. Otherwise, once the principal is exhausted, even if there are better opportunities in the future, you can only sigh in despair.

Furthermore, controlling drawdown can also help improve the stability and sustainability of transactions. Through reasonable risk management measures, investors can reduce the volatility of transactions and make the capital curve smoother. In this way, even when encountering adverse market changes, you can maintain a good capital status and provide strong support for subsequent transactions. #token2049 #新币挖矿HMSTR #美联储宣布降息50个基点 #币安上线NEIRO #比特币走势分析 $BTC $ETH