Why does one "hold on to losses and run with small profits"?
1. Fear of loss: Denial of losses leads to holding onto floating losses, hoping to break even.
2. Fear of giving back floating profits: Eagerness to lock in profits limits profit potential.
3. Lack of trading logic: Operations rely on intuition, with no clear plan or discipline.
4. Insufficient review: Failure to summarize problems leads to repeated erroneous trading habits.
How to overcome?
1. Establish rules: Clearly define stop-loss and take-profit points, gradually reduce positions to avoid emotional trading.
2. Data-driven: Review trading records to improve decision-making strategies.
3. Adjust mindset: Accept reasonable losses and focus on long-term gains.
4. Control position size: Smaller positions reduce psychological pressure and avoid massive losses.
5. Set goals: Focus on risk-to-reward ratio and pursue cumulative returns.
Summary
"Holding on to losses and running with small profits" is a manifestation of psychological weakness. By using rules, data, and mindset adjustments, one can strengthen rational trading to achieve "cutting losses and letting profits run".
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