Before liquidation, many people think their trade is solid—until the market suddenly turns around. Only then do they realize their position is too heavy, and the account has no way out.
Not long ago, a follower found me and said that even though he’d been right about the direction, why did he still end up losing so badly? I asked him to send over his trading records. After reading them, it became clear. The direction itself wasn’t really the problem, and the entry wasn’t too bad either. What went wrong was that his position size was too large, leverage was too high, and his stop loss was set quite far away.
On the surface, this kind of trade seems like it’s about chasing profit. In reality, you’re compressing the entire account into a single K-line. As soon as the price moves a bit in the opposite direction, the account starts to struggle to handle it. By the time the price later returns according to your prediction, you’ve already been forced out.
He said the hardest part wasn’t how much he lost. It was that even though he was right about the direction, he ended up making nothing at all. The truth is, with many contract losses, the real issue isn’t the market—it’s that when you opened the position, you never left yourself an exit. $AKE
Later, I only told him to change one habit first: before opening a position, reduce the size. Then set the stop loss based on the amount of loss he could actually accept. If he couldn’t tolerate that loss, then don’t open the trade. At first he thought this was too slow. But after a few weeks, he found that his account stopped swinging so wildly. He wasn’t so panicked when entering, and the profits were also easier to hold onto.
The real threshold for contracts was never about whether you’re willing to charge forward—it’s whether, at the moment you most want to rush in, you can pause and calculate the risk of the trade first. #SEC收到21SharesINJ现货ETF修订申请
Not long ago, a follower found me and said that even though he’d been right about the direction, why did he still end up losing so badly? I asked him to send over his trading records. After reading them, it became clear. The direction itself wasn’t really the problem, and the entry wasn’t too bad either. What went wrong was that his position size was too large, leverage was too high, and his stop loss was set quite far away.
On the surface, this kind of trade seems like it’s about chasing profit. In reality, you’re compressing the entire account into a single K-line. As soon as the price moves a bit in the opposite direction, the account starts to struggle to handle it. By the time the price later returns according to your prediction, you’ve already been forced out.
He said the hardest part wasn’t how much he lost. It was that even though he was right about the direction, he ended up making nothing at all. The truth is, with many contract losses, the real issue isn’t the market—it’s that when you opened the position, you never left yourself an exit. $AKE
Later, I only told him to change one habit first: before opening a position, reduce the size. Then set the stop loss based on the amount of loss he could actually accept. If he couldn’t tolerate that loss, then don’t open the trade. At first he thought this was too slow. But after a few weeks, he found that his account stopped swinging so wildly. He wasn’t so panicked when entering, and the profits were also easier to hold onto.
The real threshold for contracts was never about whether you’re willing to charge forward—it’s whether, at the moment you most want to rush in, you can pause and calculate the risk of the trade first. #SEC收到21SharesINJ现货ETF修订申请
