This is another question that can distinguish cloud traders from real traders. I really don't understand why some people are still clinging to the past ideas and trying to clean up the mess in 2023? Let me first say the conclusion. Adding positions with floating profits is definitely not as good as holding a heavy position from the beginning. If you see it right, you will earn less, but if you see it wrong, you will lose more. What's more important is that the current market is extremely fast, and adding positions with floating profits can't keep up with the market rhythm. The only market where adding positions with floating profits can be successful is a big bull market, that is, the later it is, the more fierce the funds will be pulled. Look at the historical trends and see how many years ago this happened last, and then calculate the probability problem. You understand every market as a big bull market, and then use the strategy of adding positions with floating profits to see how many times you are wrong before you can be right once. The predecessor of adding positions with floating profits was fixed positions, which was first proposed by Livermore. Whenever the profit reaches a certain stage, the same position as the bottom position is added. Once the retracement exceeds a certain critical point, it will be closed or 80% closed! Later, Stanley Kroll and Richard Dennis, who were also in the same era, also made such operations. The teaching in the Turtle Trading Rules is that after breaking through the resistance, as long as the market continues to remain strong, the position should be increased to the maximum at the fastest speed, and then held. The essence here is to increase the position quickly and decisively, don't hesitate, hesitation will lead to defeat, just bet that this is the starting point of a big market! Kroll is the kind of person who holds positions for a very long time. It is common for positions to change months. He looks at the weekly chart, which has a very large pattern. He increases positions when breaking through resistance, which is similar to Livermore. The success of the so-called "floating profit increase" of the above-mentioned people is actually inseparable from the cooperation of the times. The market in their era can really maximize profits by using the strategy of floating profit increase! But the times have changed, just like the history of the development of online games in my country. The previous games were slow-paced and a task could be completed for several hours. Now, no one can play this kind of game well, and the pace is many times faster. As far as the current domestic capital market is concerned, futures and stock markets are the same. A wave of market conditions will not last long from the beginning to the end. Take the last wave of A-share market as an example, 7.24 is the bottom, and it ended on 7.31, which only lasted for 6 days. More importantly, the high opening and high closing on 7.25 accounted for more than 40% of this wave of gains. How would you deal with the current market environment? Not to mention adding positions with floating profits, even if you don't add positions, even if you dare to chase in at the high of 7.25 and then exit on 7.31, the profit is not much. Therefore, adding positions with floating profits is a stupid move that will magnify losses for most people unless you have a very accurate grasp of the entry and exit points. But then again, if you have the ability to accurately locate the beginning and end of the market, then even if you start with 10,000 yuan, it won't take long for you to grow into a giant in the market.
The magic order I have been preparing for these few days is about to be launched!!!
Comment 168 on board!!!
Impermanence belt Impermanence belt Impermanence belt!!!
Important things should be said three times!!!