We all know that even if we make more preparations before the operation, we still cannot grasp the market trend 100%, and we may even go against the market trend and suffer losses. Then many people will choose to carry orders after losses. Some of them succeed in carrying orders and recover their losses, but more people fail to carry orders, and the losses are getting bigger and bigger, and finally they have to sell at a loss. Let's talk about carrying orders today.
What is "holding a position"? In fact, it is the behavior of not wanting to close a position to stop loss. Why are you not willing to close a position to stop loss? There are two reasons: not admitting your mistakes/not wanting to lose your principal. In fact, these two points are also very normal. After all, no one likes to admit their mistakes, even children don't like to admit their mistakes. So if you don't admit your mistakes or don't want to lose your principal, you need to hold a position. When you hold it back, you can still say "I am right" and feel that you have defeated the market, but in fact, it is not the case. It can only be said that it happened that the market trend reversed at that time, making your holding position meaningful. In fact, whether you hold a position or not has almost no impact on the market trend.
So it’s not that your operation of holding the order is correct, but that the market happened to reverse when you held the order, so your operation of holding the order seems correct.
So how do we change this bad habit of holding on to orders?
How to avoid carrying orders? A simple method is to set a stop loss when entering the market. After setting the stop loss, do not manually expand the stop loss. Generally, when entering the market, the stop loss is often set at some key positions. If these key positions are broken, it means that the direction of entry is likely to be wrong, so it is more reasonable to exit with a stop loss. Another thing is to try not to make orders against the trend. For example, when the upward trend reaches the key pressure level, it may encounter resistance and fall back, but it may also break through directly. Then when it reaches the key pressure level, many people are accustomed to making a short position, a short-term short position that encounters resistance and falls back. If this kind of order cannot be run out, it is likely to become a carrying order or even increase the position against the trend. Therefore, try not to make orders against the trend. When it reaches the key position, the previous trend orders can be exited, and then it may be more appropriate to wait and see. Because if you go against the trend, you don’t know whether the market will continue, and if it continues, no one knows where it will stop.
First of all, you need to have a good reason for holding a position, and what the consequences will be after holding a position. These are the issues you need to consider. If you are not sure, then it is best not to hold a position, because a battle without certainty will take a big risk. In addition, the fundamental reason for holding a position is that you do not have enough experience, which is the key point. Therefore, you need to constantly improve your trading experience to avoid holding a position.
In fact, this view can be said to hit the essence of the problem directly, because for experienced traders, it is almost impossible to have the option of carrying orders, because they will consider the corresponding stop-profit and stop-loss before placing an order, and they can even have a rough prediction of the trend after the market triggers the stop-profit/stop-loss point. This is the importance of experience. They know that being too entangled in carrying orders in the market will easily miss the subsequent market. Compared with the pain brought by carrying orders, they are more willing to set stop-profit and stop-loss points. After all, a temporary failure is not a failure. It is not a big problem to make one or two wrong operations, as long as you control your position and manage your mentality.
Summarize
For retail investors, carrying orders can be said to be commonplace, and there is even a saying that if you don't carry orders, you are not a good trader. But in fact, carrying orders is not a good thing, especially in a trending market. Once you fall into the trap of carrying orders, it is basically difficult to escape from liquidation. So this is what we should pay attention to. Carrying orders once or twice is not terrible, it is normal, but what is terrible is that you have not summarized and have been carrying orders, which will eventually harm yourself. #币安合约锦标赛 $BTC
