To illustrate, even occasionally targeting


"Market conditions and time periods that are too difficult for oneself"
"Rest and do not trade," or even just "reduce trading positions,"
how much impact it can have on the final result,
I created a control variable table simulation to compare 4 sets of trades.
The gap in results may far exceed most people's imagination (as shown in the picture):

Initial Foundation, Based on
A:
Initial capital of 100,000, after 10 transactions from T1 to T10,
Each time I earn, it's 30%~40%, and each time I lose, it's 20%~30%.
The profit-loss ratio is not bad, with a total profit of +40% after 10 times.
But the result went from a loss of 100,000 to 94,500.

Group B:
T3, the 3rd wave of trading changed from +40% to +50%, earning an additional 10%.
T4, the 4th wave of trading changed from -30% to -40%, thanks to 10%.
(The overall win/loss is similar, but the risk level increases)
The total profit and loss remains +40%.
but the result was a greater loss than Group A.
The loss of 100,000 has become 86,800.

Group C:
T3, changed from +40% to +30%, earning 10% less,
T4, from -30% to -20%, a loss reduction of 10%,
(Similar wins and losses, but reduce the level of risk)
The total profit and loss remains at +40%.
But the result reversed, and I made a profit,
With a profit of over 300 from 100,000, it is 6% more than the final balance of Group A, which is 5,700 more.

Group D:
T4, from -30% to -0%, the 4th wave of trading is abandoned, resulting in a loss of 30%.
The total profit and loss changed from +40% to +70%,
The result is reversed, making a profit of 35,000, which is a 35% gain.
100,000 became a final balance of 135,000,
is 43% more than the 94,500 of Group A.
The gap in the actual results,
significantly exceeds the gap from a total profit and loss of +40% to +70%,

Not to mention, from Group A to Group C,
It is only about 2 waves of trades with both profits and losses out of 10 waves of trades.
Reduce the degree of risk equally,
Actually, it already is.
The vast difference from "consistently losing money" to "consistently making money."
And this is just a comparison after 10 waves. What about after 20 waves, 50 waves, or 100 waves?
The difference is more likely to be further magnified.

Did the comparison results exceed your expectations?
Have you felt that skipping a wave of trades that are too difficult for yourself,
How much impact can you have on your final outcome?

On the other hand,
This "suitable trading difficulty balance point"
need to be in different seasons of spring, summer, autumn, and winter
Continuously exploring and searching through iterations,
It is different for everyone,
Even for different periods of oneself, it is also different.
This is also why many people, after years of trading, summarize the trading journey.
"Knowing yourself is very important; it's not just a profound saying."
This is not abstract philosophy; this is something very concrete that you won't understand unless you've experienced it.
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