Many people think the core of trading is predicting price movements. Most people make predictions before the event and end up being wrong afterward, while a small number do predict accurately but still lose money.
The main reason for this situation is a misunderstanding of trading and its core principles, believing that if you can calculate accurately, you will definitely make money. The truth is that even if you guess wrong 7 times out of 10, as long as you make enough profit on the 3 times you are right and keep your losses small on the 7 times you are wrong, you can still survive and even win big.
It is well known that the tactics of the big players are to establish positions, manipulate the market, and then sell at a high price. However, for ordinary traders, accurately judging the intentions of the big players is not easy. This requires us to learn coping strategies: stop-loss is king + position control + do not chase prices or panic sell.
Don't compare your stubbornness with the big players. Set a stop-loss line, protect your capital, and never go all in. Even if you expect a 100-fold increase, only use 10% of your funds to test the waters, and increase your position gradually. I've seen too many people fail just before dawn; it's not that they aren't smart, but their positions were too heavy and their mindset collapsed.
The big players love to drive up prices to lure more buyers and then crash the market to force out positions. Even if you correctly predict price movements 10 times, if you don't set a stop-loss during just one sudden drop, your account could be wiped out. The big players can manipulate short-term prices, but they cannot control your positions and discipline.
Therefore, the key to trading is not how many times you guess the market correctly, but how to make a big profit when you're right and a small loss when you're wrong. This is the true path to becoming a winner.
#交易真相 #交易心理学 #仓位管理
