How to rebuild your mindset? Get your confidence back (I wrote an article about position sizing and pinned it to the homepage, so I won’t respond to everyone’s questions about position sizing here. Reply to @今晚不盯盘 —if you’re having problems like this, then I believe many people, after a period of losses, fall into self-doubt: no confidence. You know what’s right, but sometimes you still don’t dare to enter. After you enter, once you have a little profit, you’re afraid of a drawdown, and after you make a little you leave.
From a personal perspective, I’ll share some suggestions—if they help you, feel free to take them as reference. If they don’t match your ideas, I hope you’ll be more tolerant; no need to criticize.
For example: doubling or multiplying by 5 or 10 within a day—if it goes the other way, it means liquidation. If you’ve been experiencing continuous liquidations, it’s hard for the mind to stay calm and correctly face the market’s moves. If your account fluctuates by 2%, 5%, or 10%, your mindset will be relatively steadier.
What’s revealed here is the issue of risk control—i.e., position sizing. I’m a naked-K trend trader. When I started, I traded on the daily and weekly charts, and I also trade on the 4-hour timeframe. When I enter trades myself, my risk control is usually 5% for entries; for a larger timeframe, risk control can be increased to 10%.
Given the mindset you have now, you can start trading with 2% risk control. After you complete 5 or 10 trades, check your win rate. If your win rate is 70% or above, then gradually increase to 3% risk control for trading. Personally, I wouldn’t recommend exceeding 5% risk control. The smaller the timeframe, the more strictly you need to control risk—because changes on smaller timeframes happen quickly. Once a large timeframe forms, within the short term it won’t change. Decide the direction with the large timeframe, and then use the smaller timeframe to find entry points—trade in the direction of the larger timeframe.
Finally, I wish everyone to get back to even as soon as possible and make money and get rich.
From a personal perspective, I’ll share some suggestions—if they help you, feel free to take them as reference. If they don’t match your ideas, I hope you’ll be more tolerant; no need to criticize.
For example: doubling or multiplying by 5 or 10 within a day—if it goes the other way, it means liquidation. If you’ve been experiencing continuous liquidations, it’s hard for the mind to stay calm and correctly face the market’s moves. If your account fluctuates by 2%, 5%, or 10%, your mindset will be relatively steadier.
What’s revealed here is the issue of risk control—i.e., position sizing. I’m a naked-K trend trader. When I started, I traded on the daily and weekly charts, and I also trade on the 4-hour timeframe. When I enter trades myself, my risk control is usually 5% for entries; for a larger timeframe, risk control can be increased to 10%.
Given the mindset you have now, you can start trading with 2% risk control. After you complete 5 or 10 trades, check your win rate. If your win rate is 70% or above, then gradually increase to 3% risk control for trading. Personally, I wouldn’t recommend exceeding 5% risk control. The smaller the timeframe, the more strictly you need to control risk—because changes on smaller timeframes happen quickly. Once a large timeframe forms, within the short term it won’t change. Decide the direction with the large timeframe, and then use the smaller timeframe to find entry points—trade in the direction of the larger timeframe.
Finally, I wish everyone to get back to even as soon as possible and make money and get rich.