Why do 99% of retail investors end up with a liquidation after holding positions?

Let's first look at a set of data.

This data comes from the trading statistics in the book "The Clear Realm."

1. If all stop-loss orders are not closed, there is a 98.8% probability of turning losses into profits within the next two weeks.

2. If all take-profit orders are not closed, there is a 91.3% probability of achieving greater profits within the next two weeks.

The previous hour’s order was stopped out, and the next hour the market reversed,

A losing order that does not stop-loss can turn into a profit right away.

I believe brothers have had similar experiences.

If a stop-loss loses 1000, not stopping out can earn 1000; this is a net value change of 2000 in the account. At this point, you might want to curse this damn market multiple times; it's so painful.

So, should you stop-loss or hold positions in trading?

Today, let's discuss this issue.

In fact, the answer to this question is very simple; you'll know after holding positions a dozen times.

Hold a position once, and the market goes as you wish, it comes back, and there are no losses, even a profit. You feel like you did well this time.

Hold a position three times, and the market goes as you wish, it also comes back, and the profit is decent. You feel like holding positions isn't that terrifying; 80% of the market movements are sideways, and you can hold on a bit and it will come back.

Hold a position five times, and the market moves too much in the opposite direction, with a sense of never returning. You become fearful, feeling the market won't come back, and thus you have to stop-loss. A single stop-loss wipes out all the profits from the previous four held positions and incurs further losses (for example, with methanol, you dare to hold on for a 50-point fluctuation, but if it moves 200 points in the opposite direction, see how you feel; do you still dare to hold positions?).

Hold a position ten times, and the market is moving in the opposite direction. You are unwilling to accept it, so you add to your position, but your additional position has no effect; the market continues to move against you. Then you watch your losses grow larger, unsure of what to do, agonizing for a few days, watching your account losses reach a certain level, and then you have to cut your position.

If you do not learn from your long-term lessons, after holding positions ten times, you may continue to hold. The eleventh time is fine, the twelfth time is fine, the twentieth time may also be fine, but when it comes to the fiftieth time, the hundredth time, the final outcome will definitely be one: liquidation.