In trading operations, pursuing perfectionism is a pathological condition. For example, pursuing the perfect entry point position will not incur floating losses. Pursuing the perfect entry point requires infinite patience to wait. However, during the waiting process, the market's disorderly fluctuations give rise to seemingly false market opportunities, constantly arousing traders' desire to open positions, leading to frequent operations back and forth in the oscillation. The more the principal is ground down, the less the emotional cost and principal will be worn out when the perfect entry point appears, causing a lack of confidence in one's own system, being afraid to place orders again, or being unable to open a normal position due to psychological issues. After the market moves, it will lead to endless regrets, causing emotional problems, resulting in a chain reaction, and ultimately leading to significant drawdowns or even liquidation. In short, this is the butterfly effect in trading. Mishandling a small problem can lead to a continuous chain reaction, ultimately resulting in serious consequences. There are many problems we may encounter in trading, and the pursuit of perfection is just one of them. However, if various small problems are not handled properly, they can all produce the butterfly effect in trading, just like the above. For those who always pursue perfectionism, the solutions are: ① Trade with a small position to test and feel the market direction, and add to the position after a floating profit; ② Use time-based stop-loss for heavy positions, stop the position if there is no positive feedback, and take profit to cover the loss. How to cut off the chain reaction during trading and prevent it in advance lies in the physical and psychological handling when a small problem arises. Only by "cutting losses" when a small problem occurs can the serious consequences be avoided. Timely stop-loss of positions will prevent the principal from suffering huge losses.
Today's analysis: The long-term bullish trend of BTC has not changed, and it is currently oscillating. The recommended operation is to stay out of the market and wait for a long structure at the lower boundary!
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