Recently, the market is bleak, with no trends and no Fluctuation, leading to losses both up and down. Many people are expressing that they are suffering significant losses.

It is obvious that we are currently entering the range of adjustment waves. During this adjustment, the market is strange. It would be better to take this time to improve yourself and learn something outside of trading.
Today I want to share my insights on position management:
Position management primarily revolves around three key points:
①Clear Stop Loss
② Reasonable Profit and Loss Ratio
③ Smaller capital drawdown
So regarding these three points, what we can achieve is:
① Find suitable trading opportunities through the corresponding trading system, and correspondingly, we have also identified the corresponding take-profit and stop-loss levels, which we strictly execute.
Remember! Once the stop-loss and take-profit are set, do not change them easily. If there is a change, it must be due to a change in the market conditions, not a change in your own mindset.
② The profit-loss ratio is a trading concept that refers to obtaining greater profits within an acceptable and controllable risk. Since beginners may have biases in their judgments about probabilities (excluding quantitative analysis), we do not consider the influence of probabilities in this regard. Therefore, for each trade, you should at least achieve a profit-loss ratio of 2 or higher; over the long term, your returns will be positive.
Many people know that if they lose 5%, they need to earn 5.263% to break even. If they lose 10%, they need 11.11%. If they lose 90%, they need 1000% to break even!
Therefore, we need to set a maximum loss for each trade to help ensure the sustainability of long-term trading; otherwise, it may lead to continuous losses with no hope of recovery. For this reason, I recommend that beginners use 5% as a reference, keeping individual losses within 5%, while also engaging in higher risk-reward ratio medium-term trades.
Finally, it is important to emphasize one point: the unity of knowledge and action.
Otherwise, no matter what genius treasures you learn, it is all in vain if not applied to actual trading. #打榜优质内容#