I spent half an hour on Twitter on Sunday, and the screen was full of fright, fear, complaints, and arguments. Many people asked me how to interpret these situations. The ironclad rules of trading are simple; the difficulty lies in execution, mindset, and position management. First, in a bear market, you must reduce your position size. We are all just ordinary people. Second, if you know how to short, several of my friends made some money shorting this wave. Why short? Because the bear market trend is downward; you're trading the trend: down - consolidation - further down. If you know how to long, then the bear market is on the left side. How do you buy on the left side? Buy in batches, don't be greedy, don't try to buy at the bottom, or even use leverage. That's all because your fear and greed affect your mindset, causing you to lose position management. I currently have a relatively small position, about 20%, because I've long planned to buy in this range and have been waiting for a long time. If you're afraid to go long or short, the market is too bad, and you don't want to risk losses, then do nothing. Lying still is fine too; we are all just ordinary people.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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