I previously presented a multiple-choice question to everyone, and most people's first choice was basically AB. That's human nature. I'll briefly summarize the selection scenarios and the account situations.
1. Those who chose AB: Your contract trading should have resulted in a loss so far, and the loss is still increasing.
2. Those who chose AA: Your contract trading also resulted in a loss, or rather, you've only recently started to see some profit, but it's not much, overall still a loss.
3. Those who chose BA: This is the correct answer for profitable contract trading; I'll explain why later.
4. Those who chose BB: It's the same as choosing AA.
1. Standard gambler mentality: When profitable, they are afraid to expand profits; when losing, they refuse to accept losses. Profits are small and losses are large, with a negative profit-loss ratio. When earning, they make 100K; when losing, they lose 200K. Over time, losses inevitably accumulate.
2. Profit-loss ratio 1:1: Earnings aren't much, losses aren't much either, but in the long run, they still lose. Even with a 50% win rate, external disturbances and emotional impacts can still lead to losses.
3. Profit-loss ratio 2:1: That is, earning 200K when winning and losing 100K when losing. As long as it is strictly followed, it is correct when the success rate is above 50%.
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I previously presented a multiple-choice question to everyone, and most people's first choice was basically AB. That's human nature. I'll briefly summarize the selection scenarios and the account situations.
1. Those who chose AB: Your contract trading should have resulted in a loss so far, and the loss is still increasing.
2. Those who chose AA: Your contract trading also resulted in a loss, or rather, you've only recently started to see some profit, but it's not much, overall still a loss.
3. Those who chose BA: This is the correct answer for profitable contract trading; I'll explain why later.
4. Those who chose BB: It's the same as choosing AA.
1. Standard gambler mentality: When profitable, they are afraid to expand profits; when losing, they refuse to accept losses. Profits are small and losses are large, with a negative profit-loss ratio. When earning, they make 100K; when losing, they lose 200K. Over time, losses inevitably accumulate.
2. Profit-loss ratio 1:1: Earnings aren't much, losses aren't much either, but in the long run, they still lose. Even with a 50% win rate, external disturbances and emotional impacts can still lead to losses.
3. Profit-loss ratio 2:1: That is, earning 200K when winning and losing 100K when losing. As long as it is strictly followed, it is correct when the success rate is above 50%.