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⚠️Ultimate Warning: High leverage contracts are a slaughterhouse for professional institutions, with a retail survival rate of less than 0.3%. If you experience the following symptoms, please stop trading immediately:
💀1. Start using the "Martingale strategy" (double down after a loss)
💀2. Think "This time is different, it will definitely bounce back"
💀3. Concealing transactions from family and friends
The essence of heavily leveraged positions is paying the "accelerated death tax" to the exchange. The way to survive is always to start with small positions and strictly adhere to discipline.
⚠️Several major pitfalls to avoid
❌1. Those who like to trade on the left side, aiming for perfection in bottom-fishing and top-sailing, are always looking for methods to buy at the lowest point and sell at the highest point. They enjoy predicting trend reversals based on sensitive signals and entering the market early, falling into predictive trading. For example, in an upward trend, they might enter a short position just because they see a large engulfing bearish candle, ignoring the fact that the upward trend has not been confirmed to be over.
❌2. Do not set stop-loss after entering the market.
Entering a position without a stop-loss, or after entering, when the original market expectation is broken and the trend direction reverses, still refusing to acknowledge the mistake and stop-loss. Or even knowing that the direction is wrong, still holding onto a wishful thinking mentality, hoping for an opportunity to break even or reduce losses when exiting, but in the end, can only watch helplessly as the unrealized losses further expand.
❌3. Operate completely based on feelings.
There is no objective method to judge market trends; the entry and exit rules are random. One focuses only on the signals that support their predicted direction, ignoring contrary signals. There is no established trading system, or even if there is one, strict execution is still not achieved.
❌4. Adding positions to floating losses
After making a mistake, not only do they fail to cut losses, but they also stubbornly continue to increase their positions in the same direction as their previous judgment, or hope to break even quickly by adding to their positions, resulting in compounding mistakes that expand losses to an irretrievable level.
❌5. Using too high a position or leverage has fallen into the anchoring trap of historical market trends, believing that the market will inevitably repeat this pattern next, so one chooses to go all in. Due to heavy positions and high leverage, when you realize that you have gone in the wrong direction, the unrealized loss is often too great to bear, so human nature leads one to choose to take risks and hold on, resulting in liquidation.
⭐ To avoid significant losses in trading, as once traders experience a major loss, they often struggle to accept stop-losses and rush to recover their losses, leading to emotional and frequent trading. They become willing to engage in any market condition and take any opportunity, further increasing their positions and leverage in risky trades to quickly break even, ultimately accelerating the depletion of their accounts. Therefore, one misstep can lead to a series of mistakes; a large loss is often a precursor to total account depletion.
⭐ The essence of trend trading is to cut losses and let profits run. Therefore, the result of every successful trader's trade should be either a small loss, a small gain, or a large gain, and it should never be a large loss. As long as large losses are avoided, it will be easy to achieve profitability in the long term. However, various emotions such as human greed, fear, frustration, defiance, and the pursuit of perfection constantly influence our brains during trading, leading us to repeatedly make the same mistakes... Most traders like to analyze and predict, essentially pursuing the perfect bottom and top, striving for how to buy at the lowest point and sell at the highest point in left-side trading, but this has already exceeded the realm of human civilization. The only certainty in the market is the uncertainty of trends. As long as you are still engaging in subjective emotional trading through predictive fantasies, you will never escape the vicious circle of small gains and large losses.
❤️Speculation is essentially a game of probabilities. The rules of the trading system are the secret weapon that helps us overcome human weaknesses and ultimately win. After entering the market based on standardized signals from the system, cut losses when the market proves you wrong, and let profits run when the market proves you right. This keeps the trading results to small losses, small gains, or big gains, avoiding significant losses, allowing for long-term stable profitability.
💡Trend trading is a type of right-side trading that follows the market trend. Before the market shows signs of a trend reversal, we should not take counter-trend actions based on predictions that the market will reverse. We must give up the fish head and fish tail and only eat the most delicious part of the fish body in the middle of the trend. Once you have built a trading system that suits you, there is no need to analyze or predict because if your prediction is correct, the trading system will naturally issue trading signals. Moreover, our subjective predictions are often wrong. The reason we need to establish a trading system is to operate according to standardized signals defined by technical indicators, so this rule must be clear and specific enough to facilitate execution in trading.
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MagicConchShellvip
· 08-29 16:41
Just go for it💪
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MagicConchShellvip
· 08-29 16:41
Just go for it💪
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FeiDuDuWzcvip
· 08-29 16:26
Steadfast HODL💎
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MyFateIsDeterminedByHeaven,vip
· 08-29 14:35
I have to give you a big thumbs up!
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