Heavy position trading is one of the main reasons leading to liquidation.
Using excessive leverage, pursuing quick success, and eager to get rich overnight will often lead to worse and worse results.
On the contrary, through the strategy of light position, small amount and long-term flow, you can better adapt to market fluctuations and accumulate profits steadily.
When the account funds more than double, timely withdrawal of principal can make investors more cheerful and make it easier to make quick profits.
In the futures market, those who experience liquidation and significant losses often share some of the following common characteristics. If you cannot overcome these problems, you may remain in a state of loss.
Heavy position trading (position accounted for 30%~50%): Excessive concentration of positions and the use of high leverage will reduce the ability to resist risks. Some people think that 10% of the position operation is too small, but I suggest you never expect to get rich overnight.
Be stubborn and never admit mistakes: Stubborn, unwilling to admit mistakes, always looking forward to a market correction. Flexibility to adapt to market conditions and timely adjustment of strategies are the keys to success.
No stop loss: lack of awareness of setting stop loss and always rely on manual closing of positions. In extreme market conditions, it may not be possible to respond quickly, resulting in greater losses.
In any investment market, it is a safer strategy to hold a small position and follow the trend. If you work steadily and earn more than 5% of the total account income every day, the income will be considerable in one month.
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