If there are truths to trading, light positions are one of them

If there are truths in trading, then light storage must be one of them. Traders must lower their profit expectations in exchange for a higher probability of winning.

Therefore, light storage is not only a requirement for risk control, but also a requirement for profitability.

Here is a more important question, that is, how low should the profit expectation be? Obviously it can't be too low. To find out, I'm running a 24-month experiment.

At the beginning, I tried to make a profit every month, with a target of 3%-5% per month, but this was too difficult, and I failed in the third month, with a floating loss and no profit for the month. Later, the requirements were further lowered, no longer pursuing monthly profits, but an average of 3%-5% per month, the trading strategy was more flexible, and some orders were held for nearly 4 months.

The average monthly profit even reached 8% at one point. At this time, an interesting situation happened. Even though I was used to the storm, I actually wanted more profit in my heart. The pursuit of a stronger Olympic spirit depends on the occasion. I know this is a demon that hinders me, so I decisively put the brakes on the transaction.

The monthly average of 8% is obviously too high and must be lowered. Judging from the experiment and the current situation, there is no pressure on the monthly average of 3% in profit expectations, and a little higher is fine. No matter how high it is, it will really affect the mentality. Because it is a leveraged transaction, there is actually no need to worry about profits. Even if it is a very low position, the accumulated income month by month is still considerable.

I know that there is a mentality now, that is, small funds must pursue higher returns, trade heavily, and wait for large funds before seeking stability. This kind of thinking is so wrong that it can be evaluated in four words, the Taoist heart is not firm. The idea of ​​trading must be consistent.

Wouldn't it be possible to make a lot of money with a small amount of capital? That's really the case. We are also doing transactions. Because of the small scale of small funds, it is impossible to earn too much, so the threshold for transactions is not low, and it will not last long to maintain transactions based on profits.

Regarding profit expectations, after the 24-month experiment is completed, I will write an article to summarize. At present, I can only give some personal suggestions. No matter what expectations you have for the transaction, please expect the profit to be lower than 30% per year. Maybe you have rich experience, but it is best not to exceed 50% per year too much.