Why do small funds frequently liquidate their positions in the foreign exchange margin market?

Anything under $2,000 is a mini fund. Why do small fund operators liquidate their positions very quickly? (1) Heavy position operation. Under normal circumstances, it is very safe to insist on 0.1 lot for $1,000 and 0.2 lot for $2,000. However, many small funds place 1 lot for $2,000. Once they make a mistake, they will not stop their losses and carry their losses until they are liquidated. If you want to survive in the foreign exchange margin market and do not change this trading habit, you will always be "Song Ziwen" when you come to this market. You are here to send money.

(2) Contrary to the trend. For example, EUR/USD, GBP/USD, gold, and crude oil have been bulls during this period of time, which is one word: up! Since it is up, you want to make a profit, and your operation direction is one word: more! When the correction comes down, I will have more, and if I fall sharply, I will have more. I only have more than empty, and empty is waiting to die! If you don't understand, it doesn't matter. But after the liquidation. If you don't understand, it means that your personality is not suitable for foreign exchange.

(3) Don't have your own trading system. You must have your own trading system. After you are familiar with the use of the MT4 platform, you only need to use 8-day moving averages, 21-day moving averages, and 33 moving averages to establish a simple trading system. Don't listen to others, and don't learn too much. The simpler, the better. In this market, only you can defeat yourself and control yourself.

(4) Impulsive trading. I have lived in this market for 9 years. I am also an individual. I also trade impulsively, but I am trying my best to restrain myself and warn myself not to be impulsive and observe the market patiently. Many newbies are persuaded by agents at willaccount opening, and then fell into the abyss of inextricability. Paid a lot of tuition.

So how should small funds survive? I have never been against heavy positions. Heavy positions are short-lived. If you are wrong, you will have to position squaring. During this time, I have a student who went from $900 to $3,700 in just two weeks. I have been paying attention to his operation. At the beginning, I did 0.1 lot, 0.3 lot after $1,500, and two 0.3 lots after $2,000. When it reached $3,000, I dared to place 1 lot. I kept telling him repeatedly, don't take heavy positions, and set a stop loss. Because he made consecutive profits, and because I called out the wrong Australian dollar, how could he listen to me and be carried away by the victory. At 2:00 p.m. at the U.S. interest rate meeting (Beijing time), there were two more hands of gold. As a result, the gold fell to $30 and pulled up $60, causing him to explode. What a pity.

I often say, that's useless, really useless! You put a $1000, a week to 10,000 dollars, no effect at all, if you put a $1000, a steady week to earn $100, that is the market in the real master. Is my most respected master.

There are two people who opened an account with the person above. He invested $900. After reaching $3,700, he liquidated his position. The other person invested $986 and now his capital is $1,270. The result is clear at a glance. You have liquidated your position, and the other person is still alive.

After failure, summarize and think more!