1. Frequent trading Many beginners operate every day, and with 22 trading days in a month, they practically trade every day.

As the saying goes: those who walk by the river often get their shoes wet? The more you operate, the more mistakes you'll make, and once you make a mistake, your mindset will change for the worse. Once the mindset worsens, you might act impulsively and choose 'revenge' style operations: possibly against the trend, possibly heavily loaded. This will lead to one mistake after another, easily causing huge losses on the account, and these losses may take years to recover. If our account has 1 million, and you lose 50%, then to recover that remaining 500,000, you need to earn a 100% profit on top of that to return to 1 million. The difficulty of these two can be experienced by everyone. Moreover, another inevitable reason for frequent operations is that investors participate in trading without careful consideration. If one operates according to a trading system, then the waiting time must be greater than the holding time, because the market is only trending 20% of the time, and the remaining 80% is sideways. If a trading system gives dozens of trading signals on a single trading product in one day, then please stay away from it, because in my view, it is almost impossible for it to help you make a profit. 'Scalping' will never make big money! A quality trading system will try to avoid participating in sideways markets, so frequent operations are not possible. The only explanation is that the trader did not follow the rules and acted blindly without thinking.

2. Likes to go against the trend Everyone hopes their entry point is better than others, but good points often require 'taking risky moves', and many pay the price for this. When prices rise very high, shorts get restless, trying to short at the peak for greater profits. Little do they know, 'there's no highest, only higher'. The US stock market rebounded from the lows after the 2008 financial crisis, recovering lost ground and setting new historical highs in just three years thanks to several rounds of quantitative easing (QE) by the Fed. At that time, there were reports of people starting to short, but what was the result? Until 2018, it still experienced a huge bull market! Between 2011 and 2018, how many people who were bearish on US stocks perished on the road of shorting! Some stock traders especially like stocks at historical lows because buying in this way gives them a lower cost than others, and they are overjoyed. But they do not realize that if a stock has reached a historical low, it could very likely go even lower, and within a few months, their stocks could be halved. Bottom fishing ends up buying at the slopes.

3. Long-term full positions Some 'rich' friends, regardless of how much capital they have in their accounts, either operate heavily or fully every time. Once the market goes against them, they can only watch helplessly as their account losses increase. If you don’t cut your losses in the stock market, you might still hold on; if you are lucky, waiting a few years to break even is possible. However, doing so means you will miss many rebound opportunities along the way because you have no remaining funds, and these opportunities can be used for swing profits! Moreover, not everyone can hold on; many A-share retail investors eventually end up cutting their losses and exiting! If this were to happen in the futures market or forex market, or using leveraged A-share investments, like the A-share bull market wave from 2014 to 2015, many investors chose margin trading, which is one reason for the surge in A-shares. During the upward process, many made a lot of money, but because of this, when the market fell, those who hadn’t exited or those novice investors who followed suit lost everything. When you use leverage and do not set stop losses, you will face issues that ordinary stock investors have never encountered: blowing up. I met a friend in 2015. He told me that he had been playing stocks before and then started trading stock index futures. He invested 800,000 yuan to start trading. Everyone knows that the second half of 2014 was a bull market, and he entered the market at 2600 points, so theoretically, this was a comedy, and he could have made a fortune! Yes, that’s right, because even if he operated fully loaded, according to the position at 2600 points, he could definitely multiply his profit several times!

But everyone underestimated him. Not only does he have good positions, but his heart is also dark, to put it another way, he is 'greedy'. Stock index futures settle with no liabilities on the same day, which means the money you make that day will go directly into your account after settlement. Then my friend, after getting into the market fully loaded at 2600 points, made a considerable profit, and he reinvested all those profits without setting a stop loss! According to his calculations, he saw the market peak at 4200 points, and as long as the index reached 4200 points, his account would reach 10 million! Everyone knows that the highest point of that market wave was 5178, so theoretically, he had no problem! However, one day, the Shanghai Composite Index had a significant pullback, and that pullback caused him to 'blow up'. Since he was fully loaded, the margin was insufficient. This explosion directly affected his living conditions, and to relieve the pressure, he sold his beloved Mercedes and had to go out to find a job. He said to me: 'I had never been in a leveraged market, so I lacked the understanding; this is the main reason for my failure this time. Otherwise, I would have definitely set aside some funds to hedge against the risk of pullback!'

These days I am preparing for the launch of a godly trade!!!

Comment 168 on board!!!

Impermanence brings impermanence brings impermanence!!!

Important things should be said three times!!!

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