“Being strategic or not being strategic, actually, there is no contradiction.”
Many friends, after opening a position, find that their entry point is actually quite good. Especially when looking at a longer timeframe, it may very well be near the bottom, so they think about holding for the bigger picture. But truly holding a position in that way means enduring the back-and-forth fluctuations of unrealized gains and losses, and the time cost can sometimes be very high. Your mindset is also put through a lot. After all, 99% of retail investors in the market do not have the temperament to hold trends or long-term positions, but they often envy those who do and end up with big results. This is a classic case of lofty ambitions but limited execution — that is human nature, not right or wrong.
From my experience, once you have a decent unrealized profit cushion, there is no need to rigidly hold the entire position. If you do not realize profits into your own account, the money is always just something you are looking at, not really yours. When you ride a roller coaster, spend the time, and the trade goes from profitable to breakeven or even loss, think about how you would feel and what the point was. In trading, learning to enter in batches and take profits in batches is one of the survival rules for retail investors in the market.
Whether you choose to be strategic or not, I more strongly recommend the 50/50 method. If your position is 100 units, after it has moved into profit for a while, you can take half (50 units) off the table as short-term realized profit, and keep half (50 units) as a core position to try to hold for the bigger move. This balances profit-taking and holding for a larger gain, and the two do not conflict.
Next, either the remaining core position continues to grow in profit, and when it reaches a good level, you take off half again (25 units) to lock in gains, while the remaining 25 units continue to be held strategically, repeating the process above.
Or, if things go badly and the core position (50 units) fails, you either exit conservatively with breakeven protection, or, if your position management is good and you are not using breakeven protection, then once it falls below cost, you can add back the other half you already banked (50 units), and then repeat the process above.
In short, retail investors should spend more thought on this. The finer your execution, the greater your chance of making money, while also minimizing risk and losses as much as possible. For large players, however, they may not care about the fluctuations and wear-and-tear in the middle; they only care about the final result. So to some extent, retail investors compete on process, while big players compete on results. Retail investors should learn less from the big players’ execution style and overall positioning, because the scale of capital is different and the margin for error is worlds apart. If you both use the same approach, you die and they do not.
#股票财报季 #BTC走势分析 #小白入圈必看
Many friends, after opening a position, find that their entry point is actually quite good. Especially when looking at a longer timeframe, it may very well be near the bottom, so they think about holding for the bigger picture. But truly holding a position in that way means enduring the back-and-forth fluctuations of unrealized gains and losses, and the time cost can sometimes be very high. Your mindset is also put through a lot. After all, 99% of retail investors in the market do not have the temperament to hold trends or long-term positions, but they often envy those who do and end up with big results. This is a classic case of lofty ambitions but limited execution — that is human nature, not right or wrong.
From my experience, once you have a decent unrealized profit cushion, there is no need to rigidly hold the entire position. If you do not realize profits into your own account, the money is always just something you are looking at, not really yours. When you ride a roller coaster, spend the time, and the trade goes from profitable to breakeven or even loss, think about how you would feel and what the point was. In trading, learning to enter in batches and take profits in batches is one of the survival rules for retail investors in the market.
Whether you choose to be strategic or not, I more strongly recommend the 50/50 method. If your position is 100 units, after it has moved into profit for a while, you can take half (50 units) off the table as short-term realized profit, and keep half (50 units) as a core position to try to hold for the bigger move. This balances profit-taking and holding for a larger gain, and the two do not conflict.
Next, either the remaining core position continues to grow in profit, and when it reaches a good level, you take off half again (25 units) to lock in gains, while the remaining 25 units continue to be held strategically, repeating the process above.
Or, if things go badly and the core position (50 units) fails, you either exit conservatively with breakeven protection, or, if your position management is good and you are not using breakeven protection, then once it falls below cost, you can add back the other half you already banked (50 units), and then repeat the process above.
In short, retail investors should spend more thought on this. The finer your execution, the greater your chance of making money, while also minimizing risk and losses as much as possible. For large players, however, they may not care about the fluctuations and wear-and-tear in the middle; they only care about the final result. So to some extent, retail investors compete on process, while big players compete on results. Retail investors should learn less from the big players’ execution style and overall positioning, because the scale of capital is different and the margin for error is worlds apart. If you both use the same approach, you die and they do not.
#股票财报季 #BTC走势分析 #小白入圈必看
