Lesson 8: Money Management and Understanding Trading

Money is king, strategy is general.

There is no invincible general in the world, any strategy will definitely make mistakes. It must be wrong.

Many people have made money and lost money. But there are still some people who often liquidate their positions.

Looking at the trading history of more than 10 years, the liquidation must be heavy. It is right to pursue the winning rate, but it is problematic to blindly pursue the winning rate. Too rigid and easy to break, too strong and fragile.

A heavy position is like a casino’s pressure. If you make a mistake once in 10 times, it’s gone. So what’s the point of winning on the 9th floor?

Many people understand the truth, but it is easier to know than to do.

In trader training, the entire course is coherent.

All the above-mentioned things that need to be exercised will be reflected later. In my exchange chat group, I have always reminded everyone that light positions are the best, and I have repeatedly reminded position management.

Many people will say, then I reduced the position, but the return is also low?

So how should I grasp and control my position?

There is a saying that if the water flows long, you will not worry about food and clothing.

Your business is not temporary, it is continuous. I don't believe that if you do it today, you won't do it tomorrow.

If you can only earn 10 dollars a day and continue, you will find that it is also terrible.

10 dollars a day, 200 dollars a month, 2000 dollars a year, 10,000 dollars in 5 years.

On the surface, it looks very little, but how much money have many people lost in five years? Only what you really earn is yours, and what you get temporarily is someone else's. Remember, even if you only earn one dollar, it is still yours.

Let's talk about the ratio of positions. Actually for a lot of people. A ratio of 11% is the best, and this 1% refers to a single transaction.

0.1 lot for 10,000 US dollars, do you think it is very little? <br>I don’t believe that you will not increase your position, I don’t believe that there is no other way behind you (here we need to look at the previous content again)

There is nothing wrong with properly amending the list.

But it should be noted that the maximum proportion of funds should be one-tenth.

In this way, a single transaction does not exceed one percent, and the total position does not account for one tenth.

Trading is a long-term process and a process of accumulation, not getting rich overnight.

The meaning of trading to our lives is icing on the cake, not a desperate one.

Our original intention is to enrich life, make life better and make life easier through transactions.

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