The market has been highly volatile these days, so let me share my trading insights.
In fact, no matter where you open a position, you must first carefully evaluate the potential space. Only when the profit potential is large enough can we gradually increase our position as the market advances.
This way, once we catch a decent market wave, there is a possibility of achieving multiple times the return. If we can accurately capture two such market waves, returns of ten to twenty times are not out of reach.
Conversely, if the profit potential is limited, even if we increase our position midway, encountering significant resistance levels can lead to a market correction, and the profits accumulated with great effort may evaporate. Moreover, the closer the price gets to the risk zone in the short term, the higher the risk of opening a position. Because once a major correction occurs, even if the market does not reverse and drop, it can still significantly shrink profits.
Therefore, in trading, besides considering going long or short, another important strategy is to stay put and patiently wait. Sometimes, not making a trade and waiting for a more suitable opportunity is a wise choice.
No matter how strong a bull market is, it is very normal for it to correct by 10%, even 20% or 30% at any high point. When the market is rising, everyone is making money, but when it falls, that's when we see who is swimming naked.
