Many times, impulsive trading is not just about entering the market casually, but about taking a large position impulsively, and then when the market moves in the opposite direction, the trader's mindset starts to explode.



(1) We can set a limit on each trade's position size, such as a maximum loss of 1%-2% of the principal per trade. No matter how optimistic we are, we cannot add to the position beyond this percentage.

(2) Never add to a position just because you want to "recoup losses." Losses are part of trading. If you're wrong, admit it. Don't think about making it back with the next trade.

(3) Use a "staggered entry" approach to reduce the psychological pressure caused by large positions.
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