A classmate in the group before asked me a question like this: reduce the position and push the protection? He thought that the standard action is to either reduce the position without pushing the protection, or push the protection without reducing the position.
Maybe I just posted it like this, and everyone still doesn't know what the problem is. Brief description of the matter: I called a long order of crude oil, and after reaching a profit-loss ratio of 1:1, I reminded everyone to reduce their positions and push for protection, leaving half of the position and continuing to earn subsequent profits. That's why the student's question was raised. Regarding his question, it can be summarized as: How to operate after reaching a 1:1 profit-loss ratio? So let me talk about the advantages and disadvantages of the four situations under such conditions (after reaching a 1:1 profit-loss ratio, reduce the position by half):
1. Reduction push protection:
Advantages: It can protect at least half of the profits, and even if the market returns, it will not lose money (except for special situations such as market gaps, the same below), and there is still half of the profits in hand. Continue to move in the original direction, then there will be more profits;
Disadvantages: The profit will shrink accordingly, and it is easy to be protected by sweeping, so that subsequent profits cannot be captured
2. Protection of non-pushing for lightening up positions:
Advantages: no loss of principal, if the market can continue to move in the original direction, there can be more profits, and it is not easy to be swept away and prevent subsequent profits from being captured;
Disadvantages: Compared with the reduction of positions and push protection, the profit may drop to 0, and the same profit will shrink accordingly;
3. Protection against position reduction:
Advantages: There will be no loss of principal, and the profit is greater than that of lightening up;
Disadvantages: the profit may drop to 0, and it is easy to be swept and protected, resulting in the failure to capture subsequent profits;
4. Do not reduce positions and do not promote protection:
Advantages: It is not easy to be protected by sweeping, so that subsequent profits cannot be captured, and the profits are larger than those of lightening positions;,
Cons: Profit may end up being negative;
The above are the four operation methods after reaching the 1:1 profit-loss ratio. Personally, if you are a novice, it is best to use the first three. After all, the first three are better for the protection of the principal. Relatively speaking, for The psychological burden will be reduced a lot; and the fourth method may hurt the principal and cause great psychological pressure, which will cause an imbalance in the trading mentality; so the fourth method, I think, is for those veterans, Prepared for traders with good psychological quality.
I hope it is helpful to everyone, thank you for reading carefully, welcome to like, comment, and forward!
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