"Light and heavy positions: the power of trading systems in trading and business"

木火苗 · 2023-10-08T01:05:49.000Z

The relationship between short positions and making money is a problem that has long troubled many traders. With the right approach, even small positions can create considerable profits; while with the wrong approach, large positions often only accelerate losses. Taking options trading as an example, when volatility levels are low, long gamma position management strategies tend to take a back seat. Regardless of whether it is a light position or a heavy position, if the trading skills are not proficient enough, it will be difficult to make a profit, but may continue to lose money. This has become a common dilemma for many traders. Therefore, traders must grasp the key points: improve trading skills and do not blindly conduct high position transactions. After having a trading system, many traders often have doubts when a signal appears, worrying that they will be hit by reverse fluctuations immediately after entering the market, resulting in losses. They want every entry to go according to their plan. However, even with 10 entries, you may encounter difficulties 7-8 times.

The relationship between light positions and making money is a long-standing problem for many traders. With the right approach, even a small position can create considerable returns; with the wrong approach, a large position will often only accelerate the speed of loss. Taking option trading as an example, when volatility levels are low, the use of long gamma position management strategies is often secondary. Whether it is a light or heavy position, if the trading skills are not proficient enough, it is difficult to make a profit, and may continue to lose money. This has become a common dilemma for many traders.
Therefore, traders must grasp the key points: improve trading skills and do not blindly trade with high positions. After having a trading system, many traders often have doubts when the signal appears, worrying that they will be hit by reverse fluctuations immediately after entering the market, resulting in losses. They hope that each entry will go smoothly according to their plan. However, even if there are 10 entries, there may be 7-8 times when they encounter difficulties.
I think the only way is to persist. In comparison, opening a steamed buns shop is not easy. You need to invest money at the beginning, but running a business also requires market research and judgment in the early stage, and you need catering experience. What if there is no traffic in the office buildings around the store at the beginning? What if the number of residents in the surrounding communities gradually decreases? What if the overall economy of the city is sluggish and the shrimp-filled steamed buns cannot be sold?
However, running a business involves many uncontrollable factors. Even if problems occur, as long as the subsequent business is good, the initial cost can be recovered. Businessmen usually do not think too much about uncontrollable factors because they know that although such a situation may happen, the probability is small. If necessary, they can even choose a new location and reopen the business. As long as the subsequent performance is excellent, the initial investment can be quickly recovered.
This decision-making method is similar to the principle of persistence in trading. Don't give up easily and believe that the right methods and skills will eventually lead to success.