Continuous losses are the easiest way to crush a person's self-confidence. Unwilling to accept failure. The wrong order has been carried away, and I am still comforting myself in my heart. If I deviate so much from the moving average, the market will soon reverse; We are at an all-time high. We have to turn around. Wait a minute. The result of waiting is that the market is developing too fast to respond. Being eager for quick success and instant benefit means that you have been dominated by desire. Such a transaction will not only bring physical and psychological pressure, but also easily damage the principal.

If investors want to be in an invincible position for a long time, fund management is essential. It is no exaggeration to say that the problems solved by fund management are related to the life and death of investors. To know that there are endless risks behind profiteering, investors must put risk control in the first place.

First, we need to measure the overall risk of the capital account. When investors are engaged in investment, they should first determine their active funds and the maximum losses they can bear according to their financial strength and psychological endurance. Generally speaking, it is suggested that the maximum loss of each transaction should be controlled within 10% of the total funds, and this 10% refers to the maximum loss that traders have to bear in case of transaction failure.

The second is to improve the profit-loss ratio. Quit as soon as possible when the trend is contrary to the expected goal, don't love war, don't get lucky; When the trend moves towards our predetermined goal, don't hesitate to let the profit run.

As the core of fund management, light warehouse is also the top priority of the whole risk control plan. Desire will crush us. In order to prevent being defeated by yourself, we need to prevent it from the rules. The only feasible way is to relax. If we aim at long-term stable profits and improve our trading ability under the premise of light warehouse, we can also have high returns.

Survival is always the first in trading. If you don't realize this truth, it is inevitable to lose money or even explode positions. Remember, you are not a gambler. Before trading, please learn how to manage your money.