Zhong Ge requires the brothers: Trade, light positions are fine, heavy positions are also okay
When trading, money management has always been an important part.
Many people emphasize light positions, saying it reduces risk; there are also many who emphasize heavy positions, insisting that one must seize opportunities, which cannot be done with light positions.
So, is it light positions or heavy positions?
Actually, it can be considered from several aspects:
First, your level of ability. If you are very skilled at entering the market and can often get in at explosive points, then of course you should seize the opportunity with heavy positions.
If your ability to enter the market is weak, then light positions are definitely better, as wider stop-losses are more favorable; otherwise, you will end up repeatedly hitting stop-losses.
Second, your level of desire. If your desire is strong, your position should definitely be heavier; if your desire is small, your position should be lighter.
Third, your risk tolerance. For a single trade, how much loss can you accept? If you have a high tolerance, your position will definitely be high; if you cannot accept a large drawdown, your position will definitely be light.
Therefore, whether to use heavy or light positions depends on the individual's ability, desire, and level of risk tolerance. What suits you best is the best; what works for others may not work for you.
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