The essence of liquidation

All liquidations are caused by heavy positions. Heavy positions do not set stop losses or stop losses are cancelled when large losses occur. Then the desire to recover the original investment will make you increase your positions against the trend. Under the fear and eagerness, the positions you increase are generally on the left side. The market does not reverse at all, which leads to greater losses. After repeated replenishment against the trend, the positions are getting heavier and the losses are getting bigger. You are restless and unable to sleep all night, and finally the positions are liquidated in despair.

There are three reasons for heavy positions:

First, greed;

Second, there was a large loss in the past, and you are eager to recover the original investment;

Third, you are too confident and firmly bullish or bearish.

For the first two, practice more to control your emotions.

For the third, you must understand one thing. We should not predict the market, but follow the market. No matter how much you earn in the past, every order behind is trial and error. #杰克逊霍尔年会 #美联储何时降息？