How to prevent the situation where profits cannot cover frequent stop losses when trading with small losses and big profits? The key to making profits in the end is that your total profits must be greater than your total small losses.
But there are two problems here. First, how to make your total profits enough to cover your total losses, and second, how to prevent your account from being blown up by frequent small stop losses. The key to solving these two problems is to control risks and try to catch large-scale market trends.
For the first question, how to make your total profits enough to cover your total losses. We know that the amount of profit is given by the market, and no one knows how far the market can go. None of us can buy at the lowest point and sell at the highest point. What we can do is to hold it as much as possible and let the profits run, but most people let the profits run, because they often run and run, and the profits are gone, or the floating profits turn into losses, so most people's approach is to actively set stop profits and target positions, but as long as you block the profit segment, your final outcome is that the market profits you catch cannot cover your small losses. Of course, letting profits run does not mean that you can't hold them all the time. The core here is to bear a certain proportion of retracement to let the profits run.
For the second question, the account is not frequently stopped by small stops, which leads to liquidation. Many people have not waited for the market to come, but their accounts are frequently stopped by small stops, which leads to continuous loss, and eventually the account is shrinking. Some even get liquidated. So here it involves fund management. You have to control the risk and wait for the wind to come. And the best way to control the risk is to lighten the position and follow the trend
