Let’s talk today about what it means to make small profits and lose big money.

1. Caused by [level confusion]:

①Build a position at a large level and exit at a small level, resulting in a small loss but a big loss.

For example, you finally went to 1f to find a buying point because of potential divergence at the 30f level. Then, after you buy, you cannot reduce or clear your position because of a divergence at the 1f level. Only when there is a central shock at the 5f level can you consider making a short-term difference procedure, and the replenishment must be resolute. As long as there is no selling point in the 5f level trend type, we will never let go. Of course, the actual operation will also be applied with some strategies such as capital-guaranteed exit and minimum take-profit.

②The operating level is too small, resulting in small profits and big losses.

For example, if a line segment at the 1f level intervenes in the buying and selling point due to divergence, then your expectation can only be the reverse 1f level line segment. If you fail to run, you will be greedy and your profit will turn into a loss.

What's more, if the 1f pen type center intervenes in the buying and selling point, when the trend extends, it does not stop the profit and stop the loss or lacks the corresponding strategy, it is also easy to cause the loss to expand in panic.

It is very important to remember this sentence in software practice: only how much reverse line segment can be expected based on the level of back slack.

In addition, based on practical experience, it is more appropriate to operate the 30f line segment in the short-term and make short-term spreads based on the 5f buying and selling point for some positions. The smaller the level, the worse the fault tolerance, accidents occur frequently, [Conscience Pictures] appear frequently, and the operation becomes more difficult. I believe that the smallest and smallest operating level is the 5f line segment, that is, the 1f trend type.

Pay more attention to the big levels so you don’t miss opportunities. The small level is only used for positioning.

③ During the large-level divergence period, you go against the trend and steal short positions, resulting in small profits and big losses.

This is a common rule and I won’t go into details.

④Speaking of level, in fact, you don’t need to envy the classmates who often post orders in the group. Frequent posting of orders means that they are at a relatively low level, and they only want to sell white powder and make money selling cabbage. And I believe that they must also have losses or losses. Stop loss order, just not posted. For a true master, the profit from one large-level transaction is unmatched by the total profits from all small-level transactions.