But how to manage capital correctly ???
The basic financial market is relatively. No one can take control of relativity to turn it into absolute. That is, prices and the fluctuations of the market are UNPREDICTABLE. Because human greed and fear cannot be accurately controlled.
Newton once said: "I can calculate the motion of the stars, but not the madness of men."
The only thing you can control in the financial market is capital management.
PARTICIPATING IN THE MARKET WITH VOLUME (Amount) HOW MUCH. WILL DETERMINE YOUR PSYCHOLOGY.
Indeed, entering with large or small trading volumes will determine your greed, fear, and hope wildly in your mind.
We often hear many shares about capital management like 1%-2% or 10%-20%... for each entry/trade. But no one tells you the measure of how much your psychological threshold can endure.
That is your FINANCIAL POSITION when participating in the market.
If someone says: "Hey, buddy. Give me 5000 VND. I will teach you how to analyze correctly. You immediately give him 5000 VND. But then that person disappears and leaves you with no lessons. So how does your mind react to that? It's a tongue click, " t://ao giving charity for m////you" and then not caring.
But it's still the story: "Hey buddy. Give me 100 million and I will teach you how to do it right. You give it to him and he disappears. How will your mind react to that? It will no longer stop at the story of 'charity,' but will be fierce reactions driven by the ego rising: lawsuits, exposing....
Similarly with the story of Trading or investing.
If you participate in the market with capital/volume that affects your mind or your life, then that is not capital management.
Therefore, trade/manage capital not only through the numbers you have learned but also manage capital by reflecting on your own mind: how to feel most comfortable when participating in the market. To minimize the rising 'ego' of greed and desire. From there, leading to the collapse of what is called right and wrong, dualism impacting the mind.
So, you trade but your mind does not trade.
Watching the flowing water but the mind does not jump into the water.
Non-doing in trading/investment comes from there => only then can profits be strong.
Trading with an account/or investing in crypto/stocks/forex or any field... with an amount that if lost or gained, your mind still does not react wildly. That can also be considered one of the methods of CAPITAL MANAGEMENT.
Because, in the end.
All suffering comes from the mind!
When winning, don't rush to sing loudly.
When losing, it’s not about shedding tears => That is a reaction from the mind - from the ego, not from the act of singing and crying!