How can new traders avoid losing money or lose less money?
It is basically impossible to avoid losing money. You can only make small losses and big profits. The following is my personal summary of methods to avoid large losses in trading. I hope it will be helpful to novice friends
The first one is against the trend:
The against trend is the most common problem for novice traders. The root cause is that they don’t have a good grasp of the points and stop losses, and their mentality is also very different. What is done against the trend is to pick the bottom and touch the top. It is a method with low winning rate and high profit and loss ratio. Because of the low winning rate, you must not hold the order and stop loss in time. Once you copy it, many people can’t hold it and get off the bus after a shock. As a result, it leads to a low winning rate and low profit and loss ratio. The mentality and technology are too different, which violates the original intention of the strategy of picking the bottom and touching the top.
Second, follow the trend and place heavy positions, but the positions are unclear:
In my opinion, there are only two positions for heavy positions, three buys and three sells, which are the definite positions of the trend reversal turning points. Any technical positions in the trend are useless and only suitable for light positions, because the callback and rebound in the trend are relatively large. If the heavy position stops loss, the market will most likely return to the opening position. Therefore, wait for the trend to go for a while before placing orders. 1/3 of the usual position is enough. If you can get a little, you can get a little. If you can't get a little, forget it.
Third, handling fees
Handling fees are the most easily overlooked source of losses, and they are usually not easy to detect in the dark. For example, in contract trading, the taker is 50,000 and the supporter is 20,000. Contract trading usually involves more takers. Even if one opening and one closing is counted as one supporter and one taker, the handling fee for one order from opening to closing is 70,000. If 1000u is opened 10 times, the position value is 10,000u, and the handling fee for one opening and one closing is 7u. If 1000u opens one order and loses 7u, it is only enough to open 142 times, and the handling fee will lose it all. This is still a conservative estimate. If all orders are taken, 1000u full position is only enough to open 100 orders each time with 10 times leverage, and only enough to open 50 times with 20 times. In other words, no matter how much money you have, a 10x full position is only enough to open 100 times and the principal will be lost, and 20x leverage only requires 50 orders.
