When you frequently make short-term and heavy trades and are desperate to lose, please read this article carefully.
The real secret to short-term trading is that the shorter the period of time you trade, the less money you make. This is disappointing, but true. Recall the investments you have made in the past. Have you ever had a big receipt in one day? If you are so lucky, how many times can this good luck be repeated? Profits take time to accumulate. Failed traders want to complete transactions in the shortest possible time, which naturally limits their profit potential.
By the definition above, you limit your profit potential, resulting in constant losses. No wonder so many people are terrible at short-term trading.
The difference between losers and winners is that losers are unwilling to take losses and sell out. Another difference is that winners will hold on to profitable positions, while losers will exit too early. Almost no loser can hold on to profitable trades for a long time. They are often very happy when they make a little profit, so they take profits too early. They often enter the market on the same day and sell it in two or three days.
You have to learn to hold on to profitable positions to make big money, and the longer you hold on, the greater the potential for profit. It takes time to make a profit from investing.
Frequent traders believe they can predict short-term trends and the highs and lows and when the market will form a top or a bottom. Sorry, my friends, I have to tell you that this cannot happen often. This is just a dream of frequent traders, an unrealistic dream.
Based on the principle that it takes time to make a profit, choosing the medium-term moving average as a reference for operation may be the best way. To make short-term trading profitable, you need to understand the following points.
1. Short-term fluctuations are difficult to predict
2. We need to control the extent of loss
3. Only after making a profit, you can get a bigger profit if you hold on to it
4. Time is our friend because we need time to create profits.
In the words of futures trading guru Kroll: Loss-making trades are short-term, and profitable trades should become long-term.
============
Most people’s trading now is just the opposite. Their profitable trades are short-term and their losing trades are long-term.
Profits come from risk control, and risks are controlled by you. When trading, the only thing we can control is to set a stop loss point. We use the stop loss point to control the transaction within a certain range, while the losers do not have a reasonable stop loss, which often results in a single large stop loss.
When you open a position, you should establish a reasonable position and stop loss point, and you may only lose so much. No matter when you enter the market, whether you buy after a new high or a new low, for transactions with stop loss points, the risk is the same. So we have to use stop loss points to control losses within a certain range.
==================================
Let me diagnose him. These are the two problems that cause retail investors to lose money.
1. Frequent trading and blind trading will cause frequent stop losses, and the accumulation of small stop losses will turn into big losses.
2. Blindly following the trend, chasing hot spots, trading with heavy positions, and not setting stop losses will eventually result in a single huge stop loss.
The second situation is the situation of most retail investors, who are still in the reckless stage.
In the first case, you already understand stop loss, but lack a broad perspective, resulting in frequent small stop losses. This is the exploratory stage.
For reckless investors, who know nothing about stocks and buy stocks randomly, they don't know when to buy, let alone when to sell, and they don't know what the company does. This type of investor should first learn, and then learn to use moving averages to look at stocks, follow the trend of the medium-term moving average, and use appropriate moving averages to stop profits and losses.
For investors who are in the exploratory stage, they should give up chasing rising and selling falling, wait for the emergence of a general trend that you can rely on, make light moves in the right places, and use reasonable stop losses to gamble your time and space.
The reason why I wrote such an article is that few people can truly profit from the bull market. We can only say that the market rose by 10,000 points and they once made money. However, because they did not have a general view and did not know how to set reasonable take-profit and stop-loss, eventually 90% of the people in the bull market would return all their money to the market with interest.
If you read my article carefully, you will know what stage the overall market trend is in, what opportunities and risks it faces, what overall trend you should rely on when investing in individual stocks, and how you should stop losses and take profits.
If you want to make money, you must put aside your impetuousness and greed, don't try to take shortcuts, calm down, settle down, and trade with a down-to-earth perspective of the general trend.
Follow the homepage, the bull market strategy layout, free sharing of various wealth codes, just to increase followers, do not be a runner-up in the bull market, only be the winner of the bull market! All strategies are shared free of charge with fans!
Click on the avatar 👉 to see me 👆 to communicate together