Let's talk about holding positions💥

Recently, many people have been holding positions for a month and asking me what to do. Here's a general overview.

The essence of holding positions is a product derived from human nature: loss aversion + the psychology of luck (I'll discuss solutions at the end).

🌟 Benefits of holding positions

1. Holding positions leads to a period of insomnia, waking up in the middle of the night, and experiencing these painful emotions of anxiety.

2. What was originally a small position can result in significant loss of capital when holding positions, which is the so-called small risk for big reward.

3. After holding positions for half a month or a month, you may discover new opportunities, refraining from opening a second position and controlling frequent trading.

4. When you can’t hold it anymore, you’ll start hedging, which will likely trap you on both sides.

🌟 Correct handling of holding positions

1. When you realize you are holding a position, you can click the “One-click close” button in the upper right corner; it’s never too late.

2. Use a mode of only reducing positions. Reduce your position when the market is favorable to you. Never increase your position against the trend to average down (a major taboo).

Even if you manage to hold it back, it’s still a wrong trade that will cultivate the demon of desire within you. If you get lucky once, there will be a second time; eventually, a trend will take you away.

If you find yourself violating trading rules, punish yourself by only watching the market for three days without trading. This is very effective.