Seeing the divine fish talking about trading, I also want to throw in a brick:
Suppose you have 1 million in capital, and you must lose it all within a week; if you exceed the time, you'll be executed. How would you operate?
1. Go all in and heavily bet on the direction
It seems like a quick way to gamble, but what if you win?
The capital doubles to 2 million, and the task of losing it becomes even harder!
2. Trade crazily and frequently
Open a position and immediately close it, slowly depleting the capital through transaction fees.
This does work, but what if some positions happen to be profitable?
Profitable positions must be closed immediately; you cannot wait!
On the other hand, you can hold on to losing positions a bit longer, hoping to lose more.
Think carefully, do these strategies resemble certain behaviors in daily trading?
Worried about giving back profits and eager to lock in gains;
Choosing to hold on during losses, hoping for a market reversal.
The most frightening thing in trading is not the loss itself
But those seemingly harmless habits that gradually erode your performance
