The story of Mr. Fanhuabao tells us that it is very dangerous to hold on to a contract.
Many retail investors have the habit of carrying on hard. If the price drops by 5%, they will bear it first, then if it falls by 10%, they will hesitate for 15%, and if it falls by 20%, they will start to feel distressed and don’t want to cut the flesh.
When it reaches 30%, it is considered a deep trap. It is really painful to cut the meat. Instead, it continues to increase the leverage and increase the position. Finally, it reaches 50% or 70% and still does not come out. In this case, the loss of your own funds will be too great. Yeah! In the end, it doesn’t have to end with a liquidation.
So sometimes we try another way of thinking, to withdraw part of the funds and do T to reduce costs, or to wait and see after all the funds are withdrawn, and then go in when the rebound is stable. How much profit can we lose? As the so-called green hills are left, are we afraid that there will be no firewood?