Seven taboos in making contracts
1. Position Syndrome This is a common problem among investors. The "symptoms" are as follows: when there is no order in hand, the hands are itchy and have to place an order; when there is an order in hand, there is panic. Once the market moves in the opposite direction, I don't know what to do; I think there are constant opportunities, and I always want to keep operating. As a result, the more I do, the more I lose, and the more I lose, the more I do.
2. Frequent "all-weather" operations. Many investors want to be all-rounders. When they are "long", they are "short", and when they are "short", they are "long". Although they are very "strict" to themselves, this goes against the market. The importance of going with the flow. When there is no force to break another force, do not think about going in the opposite direction. In the long market, you will go long, and then close the long, and then close the long, and then close the long again... In the short market, you will insist on opening short, closing short, opening short again, and then opening short again. Flat...
3. Go against the trend and grab a rebound. Is it okay to grab a rebound? If you do it right, of course. Otherwise, it will be like licking blood from the edge of a knife. If a knife fell from the sky, when should you catch it? There is no doubt that it must have waited until it fell to the ground and swayed. Otherwise, it would have been scarred. Grabbing a rebound requires certain skills. For those who are inexperienced, there is no need to take risks and just go with the trend. And when participating in the rebound, you must pay attention to the management of funds.
4. Hesitant when placing an order. When going long, you are afraid of attracting more or false breakthroughs. When you are going short, you are afraid of being short, which leads to the opportunity disappearing from your eyes. Understand that there is always a sliding inertia after the train starts, when the trend takes the first step. We follow up in one and a half steps, until the balance is broken and the trend is established, we adopt the operation strategy of "accepting the order and taking it all". When signs of a false breakthrough appear, the probability of winning in the opposite direction is very high.
5. The main mentality of placing orders. Many investors must have this experience: if you go long, it will fall; if you go short, it will rise; if you go long, it will still rise; if you go short, it will fall. Sometimes when doing BTC, Bitcoin Luck is very important, and the main force does not lack your skills. Turn off the computer immediately, take a break, and then start again after calming down.
6. Full position operation: Although full position operation may allow you to quickly increase your wealth, it is more likely to cause you to quickly liquidate your position. Nothing is absolute, and even funds cannot completely control the impact of emergencies and policies or news.The position will never be full, and each opening of a position shall not exceed 30% of the total funds, with a maximum of 50%, to prevent the occurrence of position replenishment or other situations.
7. Never admit defeat. Many investors are stubborn and never admit defeat when they make mistakes. They do not know how to deal with the wrong orders in their hands as soon as possible, and even let the mistakes continue. The consequences can be imagined. "I just don't believe it won't go up, I just don't believe it won't come down..." This kind of mentality is absolutely unacceptable. When you admit that you are wrong, take no chances and resolutely stop your losses as soon as possible.
I feel good
