I have lost quite a bit of money in narrow range fluctuations, and I want to share some tips to avoid pitfalls.

Looking back in hindsight, every consolidation in a range ultimately becomes the starting point for 'huge profits', 'financial freedom', and 'recovering losses'. But in real trading, the real issues are:

1. How to mechanically judge the end of a fluctuation?

2. Can we avoid false breakouts at the end of a fluctuation?

3. What does an unexpected fluctuation really indicate?

4. After a true breakout, where should the stop loss be placed?

Each of these questions seems solvable, but when you actually enter the market, you will find that they are all major pitfalls, and nearly unavoidable. To put it bluntly, you have to lose money to learn a lesson...

Here, I provide a very simple handling logic suitable for novice traders:

1. Do not trade in narrow fluctuations;

2. If you do, use a small position + wide stop loss;

3. It’s best to wait for the fluctuation to finish before considering entering on the right side.