On July 3rd, the market saw a surge, and the contract account lost 30% in one day.
Reviewing the rapid rise on July 3rd, which caused the previous short position profits to evaporate. I could have exited perfectly at break-even, but due to good previous profits from short positions, I developed the inertia of continuously opening short positions, leading to stop-losses and then starting revenge trades, ultimately resulting in a 30% loss.
But market behavior always votes with its feet, which means it went up. Not cutting losses really blows your position; thankfully, the previous experience of liquidation taught me to set strict stop-losses this time. Although it's painful, it's far better than liquidation.
The next day, I calmly reviewed several mistakes:
1. After taking profits and exiting, the mindset became restless, not executing according to the initial plan.
2. Violating my own strategy of not shorting on bullish candles and not bottom-fishing on bearish candles.
3. Position management was not executed according to the established plan.
4. When emotions run high, one should not engage in reckless revenge trading.
Summary: No unity of knowledge and action, these four characters are very simple, but worth a fortune.
I basically didn't open positions these days, but last night I opened a short position on ETH and a long position on Bitcoin (for new players, it's recommended to focus on one direction). Both have reached the first take-profit level, Bitcoin still has a base position with a break-even loss, and I added to the short position at 2520 with a break-even loss.