In trading, there is a very critical principle: do not be greedy for small profits, and do not take on large risks. This principle seems simple, but in reality, it is very difficult to achieve.
For example: you opened a position at 20,000, and as soon as you did, the market rose to 21,000. You were very happy, so you decided to take profit, earning a 5% profit, and felt great.
However, the market continued to rise to 25,000, which means that although you made 5%, you actually missed out on a 50% return. So you told yourself that next time you would definitely make big money and decided not to take profits anymore.
Then the market returned to 20,000, and you opened a position again, but the result was the same: the price rose again to 21,000, and you reminded yourself not to repeat the same mistake and to make big money.
In the end, the market fell back below 20,000, and you had no choice but to cut losses. Many people spend their whole lives trapped in this dilemma, unable to escape.
So, is there a way to make money in both big and small markets? The answer is no. A choice must be made, and I usually choose not to lose a lot of money.
What I'm saying does not mean I can do it 100%, in fact, no one can achieve 100%. Just like a man can reduce the time he spends on adult websites, but cannot completely avoid them.
Each of us can only adhere to these principles to a certain extent, but we can strive to improve that extent.
The counterfeit season is here, if you don't want to miss out, seek me out in the bamboo leaves!
