It is estimated that many novices and veterans in the currency circle are confused about the profit-loss ratio, and it is estimated that many people do not have this awareness at all. In other words, many people have never heard of this concept. Profit and loss ratio, what the hell! But let me tell you, if you do not have the basic awareness of profit and loss ratio when making orders, it is basically impossible for you to make money in the currency circle. You haven’t left Novice Village at all!
As far as I know, I deal with many fans every day. I talked to at least 10,000 fans last year. I found that out of 100 people, at most 5 people have the awareness of profit and loss ratio. The remaining 95 people either know it but have no awareness of it when making orders, or have never heard of it. To say what the profit and loss ratio is, why the profit and loss ratio is so important, or why I pay special attention to this profit and loss ratio, it must be engraved in my mind and must be implemented in my entire trading thinking. It is also the second priority. When deciding whether to make an order, whether it is a short order or a long order, the first thing to consider is definitely the direction. After determining the direction, the second consideration is the profit and loss ratio. If the profit and loss ratio is not appropriate, I will not make an order.
Simply put, in my trading thinking, if the direction is not particularly sure, but the profit and loss ratio is very suitable, I will most likely open this order, but if the direction is very sure, but the profit and loss ratio is not suitable, or it is very uneconomical, I will not open this order. Therefore, in my trading system, the weight of the profit and loss ratio is higher than that of the order direction. Many newbies make orders, basically they hold on to the order when they lose money, and run away when they make a little profit. Am I right? It's like this. Raise your paw and let me see if I'm wrong. This is the norm for newbies. You say you hold on to the order when you lose money. If you lose money, it means there is a problem with the direction. The final outcome of holding on to the order is only a liquidation. Of course, you will be able to carry it back nine times out of ten. Don't be happy secretly, because the last time you will be sent away in one wave. If you make a little profit, you are afraid that the profit will be withdrawn again, so you run away quickly when you make a little profit.
In fact, you are taking a risk every time you place an order. No matter how confident you are, you are taking a risk. You can't be 100% sure. That is impossible. So you take risks every time you place an order. Then you just make a little profit and run away, and you carry on with the loss. You make no money when the direction is right, and you lose a lot of money when you go wrong. You make a small profit, but you lose a big loss. You are just the opposite. Do you think you can make money? Don’t many novices or novices like to watch big guys make orders? Have you noticed that all the big guys who make orders, basically do not do short-term orders, they basically do trend orders, the kind that are long and short at one time, a few orders in a day, a dozen orders, the kind you have seen live More than three months old? Why do they do trend orders instead of short-term trading? In fact, it is essentially the profit-loss ratio.
Let me tell you one more thing. In fact, the accuracy of many big guys’ orders is not very high, but it does not prevent them from making a lot of money. But you can’t imitate it and find out, because you don’t have the concept of profit-loss ratio in your mind. Sometimes, it is not that their accuracy is not high, but they want to achieve a higher profit-loss ratio, and then the direction suddenly changes, resulting in a profit retracement. But what you have learned or seen is only superficial skills. In fact, some good trading habits and some good trading concepts do not penetrate deeply into your trading system or into your bones. So as you learn and learn, you will feel whether the boss’s set of things is wrong. Why do I always get stopped? In fact, it took me three days to write this article about the concept of profit-loss ratio, because this concept sounds very nihilistic. You have to rely on your own understanding to understand many things. I will explain many things. Whether you can understand it or not depends on you. See It is indeed important not to see the right direction, but a good trading habit is also very important and indispensable!
Let me give you a practical example. From October to December last year, I was not doing well during this period. The market was very torturous and I had no way to start. Really, I had no way to start. The market was very difficult to do. Compared with the recent The market conditions are similar, both long and short positions are wrong, and they suddenly rise and suddenly collapse. Then I took a break to avoid wearing out my capital. But on December 20, I spotted a wave of opportunities. At 16,500, I fully bought the spot price of Bitcoin and Ethereum. I was sure that this was the bottom, and the result was indeed correct. It took off in January and sold out at 21,000, with a profit of 4,500 points. Then in early March, when the price dropped to 22,000, I bought the spot price of Bitcoin and Ethereum again, and covered the position at 19,500. Everyone should know what happened next. I led everyone to close the position near 26,500, with a profit of about 5,500 points. .
Counting from December last year to today, I will not talk about the other orders I made in the middle. For these two orders, my principal has increased by almost 70%. It's stable and accurate, and I can sleep very soundly! To be honest, when it comes to making short-term orders, you are frightened and very easy to make mistakes, which ultimately affects your mentality. Therefore, when placing orders, you don’t have to do all orders. Don’t place orders all the time. Don’t place orders for the sake of placing orders. Many people place orders without any reason or plan. I just want to place an order just because I feel itchy. Orders are about quality, not quantity. Many fans come up and ask me, how many orders do I make in a day? I laughed because I couldn’t do ten orders in a month. Quantity is useless. Have you ever seen people who place orders frequently make big money? Anyway, I've never seen any of them. Those who place orders frequently will basically disappear in a short time. It’s not easy to make an order. It only takes a few clicks. The key is quality. Why would you make an order without quality? Never make orders just for the sake of making orders. If you want to make orders, make quality orders!
Stop frequently placing orders, put down your phone, and think about it!
The above opinions are personal opinions shared for learning and exchange, and are not intended as any investment guidance suggestions! #荣耀时刻 $BTC $ETH
