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    How to view liquidation and experience accumulation in foreign exchange trading

    To conclude, I think liquidation is not entirely a bad thing, and it can also bring valuable experience.

    If we can treat money as just numbers, rather than as money, then understanding becomes easier.

    Like me, there are many others who may have exploded a dozen times. I only exploded $250-500 each time, and exploded a dozen times, which is only $5,000. I declare that I am currently an ordinary person, and this is only a quarter of my assets. That is to say, the funds I take out each time are only 1-2%. This seems to be a large magnification, and when you look at the total assets, it is just a real offer. Even the magnification is only 0.5 times.

    Some people may not explode for two years, but how much has he lost? It may be 20% -50% of his assets.

    The end result of each person's operation is related to his operation level. If his operation rules are incorrect, the points he loses will accumulate over time. No matter how light he is, this accumulation will continue. The problem is that warm water is easier to boil frogs to death. The person who liquidated the position seems to have a heavy position, but in fact it is still light relative to the total assets. But every liquidation is a profound baptism of his thinking.

    No matter whether you admit it or not, everyone will get a deeper life summary from failure, and failure is easier to remember than victory. In foreign exchange trading, the real rule summary mostly comes from failure. In victory, there are not many rules that we can summarize. Therefore, I advocate that beginners operate diligently. Every stop loss will let you summarize a little rule. If you stop losses a few hundred times a year, you will harvest hundreds of rules. Suppose you do medium and long-term, and only stop losses a dozen times a year, how many rules can you harvest more than a dozen times? The liquidation is extremely profound to everyone. I don't believe that a person who has a dozen liquidation positions, when he invests all his assets, how can he dare to take a heavy position?

    The heavy position operation actually has a short-term advantage, that is, it requires the accuracy of the price. This accuracy can significantly improve the technique. However, this heavy position can only be relative to the funds in your account, not your total assets. When choosing a platform, some services such asTickmillA stable environment may be able to support the strict implementation of the strategy.

    If the novice wants not to liquidate the position, the only way is to take a light position. And often do not stop the loss. This kind of light position will make your mistakes continue to spread, and unknowingly erode your points and your principal. Let you be eliminated in paralysis. When you are eliminated, you will find that you have not gained a few experience because you have not stopped losses and experienced many failures. You will also find that because you have invested too much principal at one time, the loss of liquidating the position will become very large for you.

    If calculated by single position operation, each novice's maturation process may need to bear a loss of 4000 to 8000 points. It is not ruled out that individual geniuses only lose 2000 points to mature. The total number of points that novices need to bear to mature is eventually equivalent, so under the same total loss points, the more times you lose, the more experience you gain. The more times you liquidate your position, the more profound the lesson will be. To learn faster, the best way is to inject less capital, lighten your position, and operate diligently.

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    Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.