Most investors may think that if they can accurately predict the market trend, they will be able to make money, but they do not know that the focus of affecting the profit and loss of the account is not the entry point, but the subsequent trading behavior.

First of all, no one can guarantee that every trade will be bought at the lowest point, and every trade will eventually be profitable and never generate a stop loss.

Investors' research and judgment of the market is important, but to judge the market trend and choose a good entry point is only the beginning of a transaction, and the position management after the entrance is the core of whether to make money.

Soros famously said, "It's not important to be right or wrong. What matters is how much profit you make when you're right and how much you lose when you're wrong."

Winning percentage is not important, but that doesn't mean you don't need to work hard to improve winning percentage, for many short-term traders, winning percentage is important. It just means that at the same time, it is more necessary to focus on when you do wrong, learn how to control risks, and how to hold and earn greater profits when you do right. Thus, "Let profits roll over and let losses stop immediately."

For trading to be successful, it's not enough to get it right, you have to make sure you get it right and make money by doing the right thing. The trader's research and judgment of the market is correct, but it may also make mistakes in the specific operation links such as opening positions, adding positions, and clearing positions, resulting in the failure of the entire transaction, so that it is not possible to make profits through correct market research and judgment, which is quite common among traders.

It is important to know that even a professional analyst with good judgment will become objective because of the position in his hand and the position of the entrance, thus affecting his subsequent operations.

So what about buying at the bottom if there is no good trading behavior? Or you may lose money when you don't have a good selling point. So our bet should not be solely on being right about the future of the market, but if you are wrong, you will still be able to protect your account and even still make money.

The essence of risk management in the financial field is to change the compensation relationship, not to pursue the correct forecast, so as long as it is beneficial to oneself in the compensation relationship, it is okay to reduce the prediction accuracy.

Among them, although the number of times to see the right is greater than the number of times to see the wrong, the probability of seeing the right is far greater than the probability of seeing the wrong, but because of the reluctant to stop the loss of trading behavior may make us always lose money when we lose money, resulting in investment transactions always small profit and big loss, the final account is still losing money.

1. You can never find a buy that will go up.

2, even if you buy at the lowest point, it does not mean that you will be able to stop earning.

3, whenever you want to sell at the high, there may be a situation where you sell too early and lose the subsequent market.

4, ups and downs are probabilities, the focus is on the position and trading behavior management after buying, rather than the judgment and analysis before buying.

5, technical analysis has no answer, trading behavior is the reason for the impact of profit and loss.

In fact, it is our thoughts, trading behavior and handling of positions after we buy, not before, that influence the movement of our accounts. Even if we buy at a low level, we may not be able to make a lot of money, and even if we buy at a high level, we may not be able to lose much because we know how to stop our losses. Loss. Therefore, we must study how to manage the position after buying, how to correct their bad trading habits, in order to make the account ultimately profitable.