In trading, what really kills retail investors is not the direction, but the position.
Many people study indicators daily, stare at the charts, and draw lines, thinking that losing money is due to 'being wrong about the direction'.
But the truth is: the vast majority of people, even if they see the right direction, still can't make money.
Why?
Because they simply don't know how to manage their positions.
The two major issues of retail investors
Not daring to hold on with the trend
When the market is clearly going up, they rush to take profits after earning a little, ultimately making money as if they are just sipping soup.
What’s the result? When the main upward wave comes, you’ll be outside slapping your thighs.
Holding on stubbornly against the trend
When the market is dropping, not only do they not cut losses, but they also desperately add to their positions.
'When it drops a little, I’ll buy the dip,' and in the end, they buy to the point of questioning their life.
Many people fundamentally do not understand the essence of position management, thinking that position is just about 'controlling the size of leverage'.
Wrong!
Why are experts never afraid of volatility?
Retail investors panic when they encounter volatility because their positions are too heavy.
Conversely, seasoned traders actually like volatility. Why?
Because their position layout is like a 'trap':
Dropping? I still have bullets to buy more.
Rising? I was already making money.
No matter how it moves, they can stay within a comfort zone.
If you have never experienced this feeling, you will never understand.
Many people have been trading for years, still repeatedly experimenting between 'fully invested all-in' and 'randomly cutting losses'.
Meanwhile, those who truly make money have long locked in their mindset through position management.
Position management is not about making more money, but about ensuring you won't lose too quickly.
When you can survive long enough, big market movements will naturally come to you.
If you truly understand this, your account curve would no longer be a straight line going down.
