The explosion of positions during trading is often due to improper risk control. To prevent liquidation, it is recommended:
1. Reasonable position control: Use a compound interest model, trade with light positions in the direction of the trend, and accumulate small gains.
2. Set stop-losses properly: Combine stop-losses with position sizes and trading cycles, divide funds, and use both technical and monetary stop-losses.
3. Avoid frequent trading: Pause after three consecutive mistakes, adjust your mindset and review, then try small trades again.
4. Trade in the direction of the trend: Do not stubbornly resist the trend; improve your skills and psychological resilience, and achieve unity of knowledge and action.
5. Refuse to follow the crowd blindly: Analyze the logic of others' trades, and if it contradicts the market, exit decisively. Stick to your own views and adapt to the trend to control risk and avoid liquidation.
