What should I do if I can’t hold the order in yesterday’s market? My position is too light, I have stopped profit in advance, I have suffered losses in the past, and I am afraid to go for it. I was washed out and I was so angry that I couldn’t help but open a short position?
Not being able to hold on to an order is more embarrassing than stopping loss! How can you hold on to that order tightly? I have a deep understanding of this and I have to talk to you about it.
When trading, is it often like this: you make the right order, but end up regretting that you took a light position or that you closed the position too early? At this time, you have to review the whole process and see what kind of mentality or reason made you do this. Once you find the reason, you can find a way to solve it.
Trading is a process of constant trial and error and adjustment. Who hasn't lost money? The key is to find the reason why you lose money and then take appropriate measures. If you can't find the reason, how can you make progress?
I thought about it carefully and found solutions from three aspects. They may not be suitable for you, but you can refer to them:
First, you need to be clear-minded. If you are confused, you will be random when trading and it will be difficult to hold on to the orders. But if you are clear-minded and have clear goals, you will be more resolute in execution.
If you want to make a big profit, you have to find a good entry position, and then wait for the floating profit to be protected, and then pull the stop loss to the cost line. In this way, your order will be invincible. You don't have to worry about the subsequent retracement, as long as it does not trigger the stop loss, just hold it firmly. Because you want to make a big profit, not just make a small profit and run away.
On the other hand, if you want to make a little profit and stop when you are ahead, you can choose to take profit actively. However, your take profit distance must be at least 1 times of the stop loss distance before you consider taking profit. Otherwise, if the profit and loss ratio of your entry into a transaction is less than 1:1, then this transaction is not suitable. Even if you specialize in fixed profit and loss ratio transactions, it is best to take profit actively at 1:2. If the take profit distance is not as large as the stop loss distance, then you dare not participate in this transaction.
Second, it must be technically feasible. There are generally two types of big market trends: one is when the price is at an absolute high or low level; the other is when the price has been consolidating for a long time. I call the former the reversal detonation point, and the latter the relay detonation point.
Once you enter the market at the right position, you need to know that you are going to catch the big market, not to take a shot and run. So when the market gives you a certain profit, set the stop loss to protect your capital, and then hold on to it. It's like a leech that is sucked in and can't be shaken off.
If you run away after making a little profit at this time, then you have no vision. Or you didn't figure out what you were going to do before entering the market.
The same goes for if the price is neither high nor low, and the market has not experienced long-term fluctuations. Theoretically, you should not do anything that you can do or not do. But if you just want to do it, you should know that this is a small market, you can leave after making a little profit, and don't fantasize about a big market. Don't make money after a lot of effort, and end up losing it again. When the market is small, you need to take the initiative to stop profit near the support or resistance level to avoid losing the floating profit.
How to judge this kind of small market? Three points: first, the absolute price is not high or low; second, the time for shock adjustment is not sufficient; third, it is not too far from the nearby support or resistance level.
Third, you should get used to watching the market less. Many traders like to watch the market, but it is not good to watch the market. The more you watch, the more trouble you have; the less you watch, the less trouble you have; if you don’t watch, you have no trouble. I suggest that you watch the market to find opportunities when you don’t have orders; once you have orders, try to watch the market less and only a few times a day.
For example, you set a stop loss for your order and the market is moving towards your stop loss position. When you look at the market, you think: This order looks like it will be stopped, so I'd better stop loss manually in advance. So you don't follow the trading plan you planned beforehand, and your mind changes with the fluctuations of the market, so you manually interfere with the transaction and fail to execute your plan.
What's even more frustrating is that after you stop loss, the market moves in the direction you entered initially and you exit manually. This is because fear makes you not execute your trading plan and watch the market more, making you an emotional trader.
So remember: when you don’t have an order, you can watch the market more to find opportunities; once you have an order, watch the market as little as possible to avoid emotional interference!
The above is easy to say but difficult to do. Let's work hard together.
