Why can't you always control your position? Here's the reason!

Position control is a very important part of trading, and many people always fall on this issue. The reason is actually not complicated, and it mainly focuses on the following points:

1. Overconfidence

Many people tend to be overconfident when trading, and think that their judgment will not be wrong, so they increase their positions and want to make a lot of money at one time. But the market often does not go as people wish, and this mentality often makes people bear huge risks.

2. Blindly chasing ups and downs

When you see the market rising, you can't help but chase it with a heavy position, or panic sell when you see it falling. This kind of operation of chasing ups and downs is not only easy to lose judgment, but also leads to frequent buying and selling, and it is impossible to calmly control the position.

3. No plan

The core of position control is to set your own risk tolerance and investment plan in advance. If there is no clear plan at the beginning, it is easy to increase or reduce positions at will during operation, resulting in increased losses.

4. Unstable mentality

Investment itself is uncertain. Once there is a floating loss, many people become panicked and want to quickly turn the situation around by increasing their positions. This operation will make the situation worse.

Position control failure is often due to emotions and lack of discipline. To solve this problem, you need to formulate a clear strategy before trading, strictly implement it, and control the risk of each transaction, so that you can be invincible in the market.