【Beginner Classroom Lecture 6: How should we actually add and reduce positions? 90% of people have the sequence all wrong】
Many people lose money trading, not because the direction is wrong,
But the sequence of adding and reducing positions has been reversed from the very beginning.
You can compare and see if you got it right👇
1. How do 90% of people operate? (Wrong demonstration)
If you lose, add more positions; if you gain, reduce your positions.
The logic seems quite 'smart':
• It fell → It's cheaper → Buy more
• It has risen → Afraid of a pullback → Sell some first
But the reality is often:
• The more it falls, the more you buy → The more you buy, the more anxious you become
• Just when you start making money, you run away → You will never catch a big trend
Result:
The larger the loss, the harder it is to hold on; the sooner the profit is taken, the better.
2. The correct sequence is actually counterintuitive