In trading, there is a very important principle: don't make small profits, don't incur big losses.


Simple 8 words, actually very difficult to achieve, for example:
You opened a position at 2W, and it immediately rose to 21000. You were very happy and took profit, making a 5% profit. However, the market kept rising to 1.5W... You made a 5% profit but missed out on a 50% rise.
Then you remind yourself to make big money, this time not just taking profit, and then the market returns to 20,000. You open another position, and it rises to 21,000 after opening. You remind yourself to learn from last time, hold on to make big money. As a result, the market returns to 20,000 again and falls below 20,000 to 19,500, and you stop loss.
I'm having a hard time!
Many people spend their whole lives constantly switching between such dilemmas and never getting out of them.
Is there a way to make money in both bull and bear markets?
No, it must be one or the other. I usually choose not to make small profits.
I can't do 100% of what I say, and no one can do it 100%, but I can tell you the correct philosophy. How much can be done depends on individual cultivation. Each of us can only achieve a certain percentage of these principles, and we should try to improve this percentage as much as possible.
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