Have you ever done this kind of operation:
One order went in, but the direction reversed.
At first, you are only slightly at a loss.
You can still accept it and analyze it.
You look at the market and think to yourself:
👉 "It's fine, this kind of pullback is normal."
——
But the market did not stop.
It continues to move in the opposite direction.
At this point, you start to feel a bit uncomfortable.
But you didn't stop the loss.
You made another decision:
👉 Add one order
——
The reason you give yourself is:
"Let's spread the cost and I'll exit when it rebounds."
Sounds reasonable.
But from this moment on, this order has already gone bad.
——
You started this order because of judgment.
Now you are adding to your position because of unwillingness.
——
As the market continues to move.
Your floating loss has increased.
You start to watch the market.
You start to feel anxious.
You start to repeatedly check your opening price.
Then you did another thing:
👉 Add one more order
——
At this moment, you actually have no logic in your mind.
Only one thought remains:
👉 As long as it pulls back a little, I can come out
——
But the market will not cooperate just because you 'thought of it'.
It will only continue to follow its own rhythm.
——
The more you add, the heavier your mentality becomes.
The larger your position, the less you dare to stop loss.
In the end, you are not waiting for the market.
You are waiting for 'unwinding'.
——
This is the real loss process for most people:
The first order is a judgment error.
The subsequent additions are emotional upgrades.
——
Many people have always thought:
Adding to the position is 'optimizing cost'.
But actually what you are doing is:
👉 Turning a small mistake into a big mistake
——
You think you are lowering the cost.
But what you are really lowering is your rationality.
——
At first, you can still think.
After adding once, you start to feel nervous.
After adding again, you start to panic.
Keep adding, you have lost your judgment.
——
At this point, you are no longer a trader.
You are a person bound by your position.
——
Why do people always add to their positions in the wrong place?
Because people are inherently resistant to loss. --- The psychology of loss aversion
But they resist one thing even more:
👉 Admit that you made a mistake --- deny yourself
——
So you will use a way to 'fight against reality':
Not stop loss,
But adding to your position.
——
You are not correcting mistakes.
You are avoiding mistakes.
——
So you will find a very real phenomenon:
When making money, you are very cautious.
When losing money, you become increasingly aggressive.
——
Because when making money, you fear loss.
When losing money, you want to turn it around.
——
But trading is not based on 'turning' it out.
——
Experts also add to their positions.
But they only add in one situation:
👉 The direction has already been proven to be correct
And not adding when in loss.
——
The average person's position addition is firefighting.
Experts' position addition is refueling.
——
One is expanding the mistake.
One is magnifying the profit.
——
So the problem is never 'can you add to your position'.
But instead:
👉 Are you adding along with the profit
Or are you adding against the loss?
——
If it is the latter,
Then you are not trading.
You are pushing yourself towards losing control.
——
So, when you think about adding another position in the future,
Don't rush to click.
Stop for a moment.
Ask yourself one question:
👉 I am adding to my position
Or are you turning on the road of admitting defeat?
If it is the latter,
Then this order shouldn't be added.
——
📌 Conclusion of the 56th article of Shouyue Trading Philosophy:
You add to your position, not because the opportunity has improved.
But because you are unwilling to accept loss.
—— MK Shouyue
