Easy Position Rationality Judgment Secrets, Have You Got It?

In the complex stage of trading, position management is as crucial as the stabilizing force of the sea.

Today, I will reveal a super convenient trick to judge whether your position is just right.

Just calm down and ask yourself the following two core questions:

First, how did it rise / fall?

Whenever there are fluctuations in market prices, this is a question we often think about subconsciously.

However, once this question lingers endlessly in our minds, we need to pay attention; it likely means that the position we hold is somewhat too heavy.

Because only when the position is heavy do we become particularly anxious about every slight rise and fall in price, and our level of concern becomes extremely high.

Next, will it continue to rise / fall?

This actually reflects our deep inner anxiety and unease about the future direction of our held position.

When this question frequently pops up in our minds, it indicates that our emotions have already been firmly controlled by the market's fluctuations.

In this state of being swept away by emotions, our subsequent trading operations can easily deviate from rationality, falling into a chaotic situation of blindly following market fluctuations, ultimately leading to a complete loss of control over the entire operation process.

Therefore, if these two questions start to frequently flash in your mind, it’s time to quickly examine your position; it’s highly likely that your position is too large.

At this point, consider appropriately adjusting your position to regain the calmness and composure that should be present in trading, so that you can respond to the unpredictable changes of the market with a more composed demeanor.