Retracement refers to the action taken by investors to repair or recover previous losses when prices fall in investment transactions.

Retracement repair involves adjusting the portfolio by increasing buy positions or reducing sell positions to offset changes in profits and losses caused by market fluctuations. The goal of drawdown repair is to reduce the loss of the portfolio as much as possible and as quickly as possible Restore original funding levels.

Retracement repair is a strategy for investors to take actions during periods of market volatility to restore portfolio capital levels, including adjusting portfolios, increasing buy positions, or reducing sell positions.

Drawback is a common term in investment or capital transactions. It is used to describe the decrease in account assets over a period of time. In a specific period, the account net value has the highest value and continues to move backward. , until the net value falls back to the lowest value. During this period, the net value decreases. In the selected time period, there may be multiple falls in the net value. In this case, the largest drawdown is selected as the maximum drawdown.

Retracement methods in the stock market

Confidence: For ultra-short retracements, although the numbers on the account are decreasing and operational errors have occurred, it is not terrible. The terrible thing is Confidence is lost. The most important thing in ultra-short-term trading is confidence. If confidence is gone, a repair process is required, and it is very long. This makes it impossible to continue to fight in the market in the short term. After the retracement, after a night of adjustments, the price will be restored immediately. Get back on your feet. If you can't do that, then ultra-short-term may not be for you.

Concept: The market is never short of opportunities. Even in the ultra-short term, strong stocks will appear in the market every day, and there is room for operation every day. If you follow your own system, there will be operations every day. Whether it is hitting the market, chasing the rise, or buying the low, if you make a mistake once, then try again. If you make a mistake again, keep trying again. If you make a mistake three times, then you must stand up immediately. At this time, you need to think about the current market. Whether the structure and environment are consistent with your own operating system, but you cannot doubt yourself because of this.