90% of retail investors are trapped in this death loop. Have you fallen for it?
I’ve discovered a harsh truth: when the market fluctuates, the same tragic script unfolds in the trading software of the majority.
1️⃣. Floating profit 5%: frantically refreshing the candlestick chart, afraid that the cooked duck will fly away
2️⃣. Floating profit 20%: beginning to daydream about "financial freedom"
3️⃣. Floating loss 10%: opening the community to desperately search for "positive news" to self-comfort
4️⃣. Floating loss 50%: uninstalling the trading software and entering a state of pretending to be dead
5️⃣. After a liquidation: angrily cursing the market makers for cutting retail investors, swearing never to touch this "profit turns into loss, loss turns into liquidation" deadly combination, repeating almost every day. What’s more terrifying is that many people, after being harvested, have no idea where the problem lies and only blame the market itself.
In fact, the solution is hidden in two dimensions:
Spatial dimension: Write down in black and white before entering the market
The specific price point that triggers a stop loss (not a psychological price!)
A tiered profit-taking plan (for example, reduce 30% when the price rises by 10%)
The maximum acceptable loss amount (suggested not to exceed 2% of the principal)
Time dimension: Set an alarm for your trading
If holding for more than 24 hours, forcibly re-evaluate
If a one-sided market lasts for 3 days, activate dynamic profit-taking
Stop trading for a week immediately after three consecutive losses
The essential difference between experts and retail investors lies not in technical analysis ability, but in the mastery of human weaknesses. When you learn to use mechanized rules to combat the "wait and see" mentality, and use batch operations to dissolve the gambler's mindset of "all in", you have truly obtained the survival license in this market.
Finally, I’d like to share a trading maxim that enlightened me:
"Profit is given by the market, risk control is your true ability."