Loss record 2.13

I was liquidated when I shorted Ether with a small position, which was a bit uncomfortable, but I also gained a lot of money. This liquidation was a very cost-effective tuition because I didn’t lose too much principal.

The direction prediction failed last night. It was originally predicted to be a correction. However, the market went in the opposite direction and advanced all the way. It did not usher in a waterfall like the last new high. Instead, it fluctuated at a high level and prepared for the next wave of attacks.

However, this is not the fundamental reason for the liquidation. The fundamental reason is that I did not strictly follow the stop loss price in my heart, and even tried to increase the position to increase the forced liquidation price. I truly felt the terror of being coerced by "hope".

I used my own capital to verify the correctness of what the founder Livermore said:

1. Always sell positions with paper losses and keep positions with paper profits.

2. When doing transactions, you must overcome the two major human natures, hope and fear. A loss in the book proves that the direction has been chosen wrongly. You should follow the market trend instead of letting the market trend follow your own ideas, hoping to recover the capital or even make a profit, thus sinking deeper and deeper, ultimately maximizing the loss.

Learn lessons from failures and practice the trading philosophy of our ancestors. You need to always be alert to yourself in the cruel contract trading in the future. Let’s encourage fellow currency friends.