Do you often hear someone say: "If you don't add positions with floating profits, your account will never grow!" This statement is correct, but the problem is that most people don't understand how to correctly add positions!
They think adding positions with floating profits means: making a small profit, adding positions immediately, making a little more, adding positions again... What happens next?
The market pulls back slightly, profits turn into losses, mindset collapses, and in the end, either they manually close the position and miss out on a big market move, or they stubbornly hold on and face liquidation.
This is not adding positions with floating profits; this is "suicidal position adding!"
How many people have been harmed by incorrect position adding with floating profits?
"Microscopic profit frenzy" type: add positions after making 1 point, add positions again after making 2 points, but the market doesn't move far, and a few small fluctuations bring them back to square one.
"Martingale spirit" type: regardless of whether the trend is right or wrong, they keep adding positions as losses increase, eventually turning into a heavy one-sided position, and a single reversal leads to liquidation.
"Emotional breakdown" type: originally making good profits, but after adding positions, the market reverses, profits turn into losses, mindset collapses, leading to reckless trading.
These are not adding positions with floating profits; they are gambling!
How do true experts add positions with floating profits?
1. First have a trend, then add positions!
Not all market conditions are suitable for adding positions; positions should only be added when the trend is clear.
First assess key support/resistance, take initial positions, and confirm the trend before adding.
2. Adding positions is not random; it is "adding positions at key levels!"
Only add positions during key breakouts or pullbacks to avoid frequent trading.
3. Have defense in order to attack!
The biggest risk of adding positions with floating profits is profit retracement!
Mature traders will set a profit retracement bottom line to prevent profits from turning into losses.
4. Capture the big market and protect capital in a volatile market.
When the trend is right, adding positions allows profits to run, and the account directly doubles;
When the trend is wrong, reduce positions to control risks, at most losing part of the profit, and never harming the principal.
If you are not yet consistently profitable, adding positions with floating profits will do more harm than good to you!
Adding positions is not a universal remedy; the key is whether you have the ability to manage it!
If you can't understand the recent market conditions,
If your execution ability is sufficient, just copy the homework @交易员金叔 .
