How to solve the problem of always making small profits and big losses in trading

分析师木子 · 2023-10-10T07:36:43.000Z

The reasons for small profits and big losses are: First, the position is too heavy. When making money, you retreat. You are afraid that you will not make a profit, so you make a small profit and run away. When you lose money, hesitate to stop losing money and hope that the price will come back. As a result, a small loss turned into a big loss, and when the loss was unbearable, it was painful to close the position. The second is to buck the trend and grab the pullback, buying the top and finding the bottom. The third is that I can't hold on to the money-making orders, and I am always afraid of making half-hearted profits and losing money again. The market is fluctuating. When you do it unilaterally, chasing the rise and killing the fall, you can make a small amount of money but not make a loss, and wait until the loss is flat. So how should we get rid of this predicament? First: Reduce the trading frequency. The success or failure of trading is not directly proportional to the number of transactions we make. On the contrary, it is an inversely proportional process. We will find that the more frequent transactions in this market, the more frequent the transactions. Few traders are profitable. On the contrary, the more stable traders who spend most of their time waiting, spotting the right time, and decisively placing orders have a greater probability of making a profit. Through this kind of low-frequency trading, you can avoid falling into the vicious circle of emotional trading, and be able to face the risks and opportunities in trading more rationally. So what should we do? First of all, I think you should make a certain variety to perfection, first make a certain variety to the extreme, and then consider whether to make other varieties according to your own time and energy. It is very important to make it cooked rather than raw. Secondly, fix the level and cycle of the operation, and do not change the operation cycle frequently. Otherwise, the market will easily lead you into a loss-making rhythm during operation. At this time, you will often look at the market from a more subjective perspective and lose your mind, especially For novice traders, it is not recommended to make a time period that is too small when trading. Second: How to get out of the maze of trading by reviewing the trading during the suspension time? The key point lies in two words, that is, "review" in trading. Due to subjective and objective reasons, we are unable to recognize our own problems and mistakes when trading. When trading is suspended on the weekend, we You can combine the knowledge points you have mastered to analyze and predict the market resistance indicators to calculate the success probability of your transactions, the profit and loss ratio of the order, the frequency of transactions, etc. If you persist in this way for half a year, you will have a good understanding of your own The trading system will have a clear understanding.There is a saying that goes well: The authorities are confused, but bystanders know clearly. How to stay out of the situation and look at the development of things, review is the only choice. Third: Lower your expectations and learn to make an investment return plan. The original intention of entering the trading market is to make money, so how should you make money? Get rich overnight? Or get rich in January? Different people have different expectations for trading returns. Through review, we will find that by using our own technical level, as long as we seize a few opportunities and increase our positions appropriately, our account funds can be doubled or even multiplied several times. This kind of The rate of return on investment is so exciting that during the transaction, you can confidently enter the market with a heavy position or increase the position during a certain additional order. Of course, the result will be profit and loss, but with this operation method, In the end, almost no one can be a victorious general. If you lose once, even your capital and profits will be in trouble.

The reason for small profits and big losses is that the position is too heavy. When making money, the position retreats, and people are afraid of not making any more money, so they run away after making a little money. When losing money, they hesitate to stop losses, hoping that the price will come back. As a result, small losses become big losses, and when they can no longer bear the losses, they have to cut their positions with pain.
The second is to seize the pullback against the trend and buy at the top and feel the bottom.
Third, you can't hold on to profitable orders, always afraid that you will make a profit perfunctorily and lose it again. In a volatile market, when you do unilateral trading, you will chase the rise and sell the fall, make a small profit and don't lose money, and then you will lose money.
So how can we get out of this predicament?
First: Reduce transaction frequency
The success or failure, good or bad of a transaction is not directly proportional to the number of transactions we make. On the contrary, it is an inversely proportional process. We will find that the more frequently traders trade in this market, the fewer people are profitable. On the contrary, the more stable traders, who spend most of their time waiting, seizing the opportunity and placing orders decisively, have a greater probability of making a profit.
Through this low-frequency trading, you can avoid falling into the vicious circle of emotional trading and face the risks and opportunities in trading more rationally.
So what should we do? First of all, I think we should focus on a certain variety, make it perfect first, and then consider whether to do other varieties based on our own time and energy. It is very important to do what you are familiar with rather than what you are new to.
Secondly, fix the level and cycle of the operation, and do not change the operation cycle frequently, otherwise it is easy to be led into a loss rhythm by the market. At this time, people tend to look at the market from a more subjective perspective and lose their rationality. Especially for novice traders, it is not recommended to trade in too small a time period.
Second: Review the trading during the trading suspension period
How to get out of the trading maze? The key lies in two words, that is, "review". In trading, we cannot recognize our own problems and mistakes due to subjective and objective reasons. When the market is closed on weekends, we can combine the knowledge we have mastered to analyze and predict the market resistance indicators, and calculate the success probability of our own transactions, the profit and loss ratio of the order, the transaction frequency, etc. If you persist in this way for half a year, you will have a clear understanding of your own trading system.
There is a saying: Those who are involved are often confused, while those who are not involved can see things clearly. If you want to look at the development of things from an outsider's perspective, reviewing the situation is the only option.
Third: Lower your expectations and learn how to make a return on investment plan
The original intention of entering the trading market is to make money, so how should money be made? Is it to get rich overnight? Or to get rich in one month? Different people have different expectations for the return on trading. Through reviewing the market, we will find that by using our own technical level, as long as we capture a few opportunities and increase our positions appropriately, our account funds can double or even multiply. This rate of return on investment is so attractive that in the transaction, you are full of confidence in a certain increase in orders, enter the market with a heavy position, or increase your position. Of course, there are gains and losses in the end, but with this kind of operation method, almost no one can be a general who always wins. If you lose once, you will lose both the principal and the profit.