1. When the transaction is not going well :(a) reduce the transaction size;
Remember that in highly correlated markets, multiple positions are the same as large positions;
(b) Tighten the stop loss point;
(c) Suspension of entry into new transactions.
2. When trading goes badly, the reduction in risk depends on trading to cover losses rather than trading to cover profits.
I recall Livermore’s conclusion in his stock-trading memoir: “I did the opposite.
The cotton trade showed a loss and I kept it.
The wheat showed a profit and I sold it.
Of all speculative mistakes, there is no greater mistake than trying to share the cost of a lost trade.
Always sell the losing trades and keep the winning trades.”
3. Be careful not to change your trading pattern after you make a profit. 4. Don’t start anything that looks too risky at the beginning of the trading process.
5. Don’t suddenly increase the number of positions in a typical trade.
However, when the net asset value increases, gradually increasing the position is not important.
6. The same common sense should apply to small positions and large positions.
Don’t say, “It’s just a little experiment.”
7. Don’t take large positions based on important reports or statistics released by the government.
8. Use the same money management principles for long-term trading and very short-term trading.
It’s easy to let your guard down and think that intertemporal trading is gradual, so they don’t have to worry about putting in stop-loss protection.
9. Don’t immediately buy at closing prices without a plan.
The strong dollar continued, with U.S. oil plunging nearly 8 percent and the energy crisis threatening to drag the euro below parity.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.