The significance of light warehouse
The position is not the basis for profit, but it is the basis for your trading to continue to run normally. As an inexperienced person, you should first give up the idea that you can find some method to help you quickly realize profits. For most people, it is better to keep a light position first. It has three functions: feel the market, improve the system, and understand yourself.
Position Management
In fact, position management is a very difficult issue, especially in the later stages of trading, this problem will become more and more serious. Ultimately, what we need to achieve is to reject positions in different opportunities. In other words, subjectively speaking, positions must change. Good opportunities require large positions, and after making a profit, large positions; bad opportunities require small positions, and after making a loss, small positions.
Therefore, the position is not only related to the market conditions, but also to the net value. A phrase often said by asset management and private equity is that the net value determines the position.
Therefore, as far as positions are concerned, it is more based on the market and then on the net value, and you should slowly improve your position configuration through a habitual method.
Profitable position
This is the most difficult, core and hardest content of position management. When you want to achieve greater profits in a large market, you must learn and use profit-adding. Profit-adding is the only way to expand the level of participation in the market under the same risk, but it is best for ordinary people not to try it. For friends who are not very proficient in trading, try to hold a position to the end, and slowly understand the market and yourself through the number of transactions. When the system gradually begins to upgrade, optimize and iterate, then optimize your position configuration step by step.
Therefore, position management is not the core of profitability. Stable profits require many conditions. We just need to establish a habitual trading method in the early stage, and then constantly polish it, and finally form consistency. On this basis, we can improve our position configuration to achieve better results. However, if your system itself does not run well, it is still impossible to achieve profitability by simply optimizing positions, because profitability requires comprehensive skills, not a single skill.
in conclusion
1. Profit is the result of a combination of multiple factors, not a single factor.
2 Position management cannot make you profitable. It requires a very comprehensive understanding of market factors, trading factors, and your own factors.
3. Trade with a light position and get to know the market first
4 Position management is based on the gradual formation of the basic trading model. First of all, there needs to be a system that can execute itself before we can talk about position management.
5 The core of position management lies in good opportunities. Use large positions for high net worth people, and use small positions for bad opportunities. This is how you win by rushing and lose by shrinking.
6 Position management needs to pursue profit and increase positions, which is relatively difficult, but it can be tried step by step according to the literal meaning. Traders understand that when making profits, they should increase the scale and holding time.