This may be why many people are beaten by the market every time they want to make a profit.
Fall 10%, rise 11% to recover the capital
Fall 20%, rise 25% to recover the capital
Falling 30%, rising 43% to recover capital
Falling 40%, rising 67% to recover capital
Fall 50%, rise 100% to recover the capital
Fall 60%, rise 150% to recover the capital
Falling 70%, rising 233% to recover capital
In this way, it is not surprising to see that many leeks are always on the way to return to the original cost, and the operation during the process becomes particularly important.
Most people have a certain mentality. If I have a hundred dollars, I will buy it all at once. I am afraid that I will take off and make less money. But how can you be sure that it will definitely rise? What should I do if it falls?
If you simply understand investment as betting big or small, it is the biggest mistake. Even if you are lucky for a period of time, you have to remember that this is a reward given to you by the market. Is there a bad day? Is it trapped?
There is no capital to mobilize at all. Some people may insist that I take the long term and you will not lose money if you don't cut it. In fact, this is the biggest joke. While others are making money, you keep getting back your money. Also, is your mentality okay?
I think I’m not good, I can’t cover the whole position, so I can ignore him. The most unbearable thing is to finish all the money in one go. It’s very uncomfortable to be covered. I think I’ll run if I want to get my money back, and then I’ll let you get my money back, so I won’t run at the rising point. , and then you were a little panicked, and I would definitely run if you gave me another chance. You ran away decisively this time, and then sold me out in regrets.
But if you have funds, you can cover your position if it falls. At this time, your heart will not be so restless. Even if you are not given the opportunity to cover your position, you will eat more. If the position is light, you will not be so restless.
Anyone who teaches you the idea that you can only get rich by playing heavy positions is misleading to novice players. You can indeed make a lot of money if you get it right, but have you considered how much you can get? What should you do if you get it wrong? Investment is based on a profit-loss ratio rather than a bet on the size. If you can't retain chips in the bull market, it's all empty talk. What can you do with a heavy position? As far as I am concerned when dividing positions, I can hold the chips very well and double the capital. The profit and loss ratio is not known every day, which one makes money and which one loses money. The total assets are growing.
In fact, the path you have traveled and your current mentality and operations are all the same path I have traveled. It is my experience to say that you can listen to it but not listen to it. If you can't listen to it, then I am talking nonsense.
