Two Forbidden Areas that will Cost You All the Profit

After 9 years of trading experience, today I will summarize the two trading phenomena one by one, and basically the conclusion is long-swing trading will lose money.

I. Grid trading, no matter how many orders you trade, tens or hundreds, will end up losing money.

Most of the grids are formed because of EA. Many large-position accounts are piled up with orders at 0.01 lots. However, the profit and loss are of the same origin. It may be risk-free in the short term, but the profit is low. In the long run, one drawdown could cost you a year’s profit or even wipe you out. Saving money to Yu’ebao (Alipay’s saving product) is more profitable than this. EA provides convenience but at the cost of flexibility. Therefore, in my eyes, all EAs are failures.

If the girds are formed by manual trading, it is even more useless. If you are confident, you don’t need to split a 1-lot order into 10 0.1-lot orders. Blind trading with no rules and changing a system for each variety is understandable in less than 5 orders, because the human brain can still control. If it’s over 10 orders, I literally don’t know what you are doing. And don’t try to argue on short-term profit, whether you wanted to even the average price or you’re just having fun, none is a sign of mature trading.

II. Trading multiple varieties in one account which drives you crazy and affects trading discipline and making you difficult to survive

The size of the position is corelated with the number of lots traded, not the amount of funds. Many people with relatively big positions in their accounts might trade constantly while holding the position. Again, if you change a system per every variety, and several varieties are trapped, I doubt that you can remain unaffected. As a result, the transaction is not disciplined. Whether you can survive is now in the hands of fate. A greedless trader should focus only on one variety, although you may miss the profitability of other products, but you cannot rule out the centrality of the trading process. For example, I placed two varieties at the same time. I originally planned to use the Martin strategy to buy more. However, the two orders were deeply trapped at the same time and you miss the chance to buy in. Of course you want to mitigate the risks of bigger loss, however you lose your profit that could have been ripped if you bought more in at the time you recover your principal. Therefore, don’t fantasize about how good you are and thinking you can win every variety. If trading is really that simply, you are very welcome to come back and throw your profit in my face. 

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