Talking about the Feasibility of Short-term Stable Earnings with Small Funds and Heavy Positions - My Short-term Streaming Trading Mode

old troublemaker in mountain city
山城老刁民

Let's not talk about gossip, let's get straight to the point, how to achieve short-term stable and huge profits in foreign exchange trading?

I am currently operating in this way, for reference only, novices should not imitate .

dachshund

1. The advantages of short-term heavy positions with small foreign exchange funds

Let’s first talk about the advantages of the short-term heavy position mode.

First, we are not afraid of systemic risks such as black swans and platforms not paying out. If you can make a profit of 5 to 10 times a week, you can start with a small amount of money, 100 US dollars or 200 US dollars, and withdraw 5 to 10 times a week, repeat every week, even if you encounter a black swan one day, or the platform Running, because the cost is very small, and you have to withdraw money in the early stage, your risk is very small. Compared with the large funds of tens of thousands of dollars, you have to worry about the tricky running of the platform every day. swans and such. Of course, if you have millions or tens of millions, it doesn't matter. I only target ordinary foreign exchange enthusiasts.

Second, fast in and fast out of short-term heavy positions, short positions, no overnight, no torture. In the past, I took thousands of dollars to get trend orders, sometimes I took a few hours of orders, and I kept staring at my phone when I went out. Sometimes I couldn’t sleep well at night, and I rarely suffered. This is also the character, you can try my model.

Third, the entry barrier is low, and pure dicks can also practice it, not afraid of lack of money, but fear of lack of ability. Because of high multiples, small investment, and large returns, if you feel that your personality is suitable for this model, you can start with a small amount of money and train repeatedly, and you will not pay too much tuition with a small amount of money. It is not recommended for novices to deposit a large amount of money to learn, and sooner or later they will lose their positions. Of course, if you have several million dollars, if you deposit 10,000 dollars, it is considered a small amount of money. Once this model is practiced, you can start with $100, whether you have no capital or no technology. Therefore, for those who fail in various modes and lose a lot of money, you might as well start training with $100 or even $50. If it is not suitable for you, there is not much loss. If you train well, even if your garage loses money Yes, it is also possible to earn back in a relatively short period of time.

2. What kind of traders are suitable for short-term foreign exchange small capital short-term trading mode

Let’s talk about what kind of person this model is probably suitable for.

First, it is best to have been in contact with foreign exchange for two or three years. You are very familiar with foreign exchange and have a certain foundation, but you are still in a state of loss but still insist on being unable to extricate yourself. If you have already made stable profits, you can ignore it. If you are a pure novice, you will lose money when you place an order, and you can only blow up a heavy position. As many as there are blowouts, novices are cautious.

Second, impatient people. It is the kind mentioned above, if you hold a position for a long time and stay overnight, you will feel very tormented inside, you can try it.

Third, act decisively. When you see an opportunity, you will do it right away, and if you see something wrong, you will run away immediately. If you are always entangled there, you can only be ravaged by the market, and sooner or later your position will be liquidated.

3. Conditions for the sustainability of the foreign exchange small capital short-term heavy position model

Next, let’s talk about the long-term feasibility of ultra-short heavy positions. This may test everyone's comprehensive ability, and trading technology alone may not be enough. To put it simply, the first is the fund management system, the second is the technical system, and the third is the psychological adaptation system. These three aspects must cooperate with each other and are indispensable. The three aspects are interdependent, especially the fund management system and the psychological adaptation system.

First, let’s talk about the technical system first. People who have been working for two or three years may have read various books and learned various technical analysis, but often they have not formed a system, and they are just scattered technical foundations. If English is good, you can look at several foreign exchange forums abroad. There are many communication systems in them, which are much better than domestic ones. They are simple and effective. Many domestic fools are fooling around. The very simple system is turned into a high-level training. There is really no Good system, what I use can also be dedicated to everyone. However, the technical foundation and technical system are also indispensable. With the technical system, simple technical foundations such as K-line patterns, trend lines, breakthroughs, deviations, and golden sections must also be strengthened. It's like you hold a set of martial arts cheats (technical system), but the internal strength (technical foundation) is too sloppy, and you can't practice it. A technical system with a positive expected value is a necessary condition for long-term profitability. It is best that you can practice ten, dozens, or dozens of consecutive profits.

Second, the fund management system and the psychological adaptation system. These two are relatively closely related.

1. In terms of fund management, the reserve fund should be dozens of times the amount of a single deposit. For example, if you only have 2,000 US dollars left, I suggest that you deposit 100 each time. If you deposit too much, you will panic because you will be panicked after a few times of heavy positions and liquidations. The reserve fund should be more than 20-30 times the deposit amount. Of course, if you You have already lost debts, so start at 50 or 100, and start to be stable first.

2. Timely withdrawal of funds. When it reaches 5 to 10 times, the gold must be withdrawn in time, and the gold must be withdrawn in time every Friday night. As the saying goes, if you often walk by the river, you can’t get your shoes wet. No matter how good your condition is, there will always be a downswing period. If you feel that your condition is not good, you have to withdraw money. You also need to withdraw funds on Friday, because the market often changes greatly after the next week, and the thinking of the trader is likely to stay at the market of last week, and there is inertia in thinking. If you make 200 to 2000 and still want to achieve 10,000 to 20,000, then sooner or later your position will be liquidated. Compound interest is relative compound interest. If you want to keep compounding interest every day without paying money for a long time, the astronomical figures are simply ridiculous. Maybe you can rush to 10,000 to 120,000 once or twice, but it is absolutely unsustainable. It is okay to gamble occasionally, but it is not necessary.

3. Gradually upgrade. Some students may make 2000 to 2000 last week, but this week they want to make 400 to 4000, but they end up depositing 400, and panicked after liquidating their positions three times in a row. Don’t be too picky, although you made 200 to 2000 last week, technically in place, but your psychology is still in the emotional stage, and you haven’t adapted to it at all, and you will definitely not be able to hold it if you are eager to upgrade. If you have played Texas Hold'em, you know the law of Texas Hold'em upgrades. Therefore, in order to ensure long-term sustainability, I recommend withdrawing gold 5 times, 10 times, or even more than 15 times, and then upgrade. The specific number of withdrawals depends on personal psychological fitness.

4. Position management. That is, don’t overweight at the beginning of the transaction, and increase the position after a certain profit, which can greatly reduce the probability of liquidation.

4. Matters needing attention in the short-term heavy position flow trading mode of foreign exchange

Finally, let me talk about the issues that should be paid attention to in the foreign exchange short-term heavy position flow trading mode.

First, there must be a lot of short-term and ultra-short-term training in the early stage. Of course, there must be a corresponding technical system. After a lot of short-term training, a certain sense of the market will be formed. When encountering the corresponding market, we should be conditioned, instead of thinking slowly and entangled, should we enter or run?

Second, we must fully understand ourselves. When everyone has a smooth hand, there is also a downswing period. You must evaluate your mental state more accurately. If you are in a downswing period, you must adjust in time, reduce your position, or even withdraw money. Don’t make a lot of money. If you lose money, you must not lose the profits you have earned. It is recommended to exercise more, exercise more, maintain physical and mental health, and maintain a good mental state. At the same time, since it is a small fund, it is recommended to have a mentality like playing a game, upgrade and fight monsters step by step, despise it strategically, and pay attention to it tactically.

Third, be patient. Although it is said that you can't stand the suffering of the medium and long-term, you must also be patient in the short-term. For short-term trading, it is not necessary to make a lot of orders. For short-term trading, you must wait patiently. According to your own technical system, wait until there is a high-probability trading opportunity before making a move. I do a few hours at night with one hand, wait for the time period with high probability trading opportunities, and do other things during the day. I am not stupid and obsessed with the computer every day.

Fourth, the difference between short-term heavy positions with small funds and large funds. Many people think that short-term short-term heavy positions with small funds are actually meaningless. A full position of 500 US dollars at a time is the same as a position with a light position of 10,000 US dollars. Purely from the numerical ratio, it seems to be the same. Both stop losses at 50 points, and small funds have to Deposit trouble. However, in fact, when you actually trade, it is completely different. Let alone the systematic risk of large funds (such as the platform running away, as mentioned above), the difference between 500 and 10,000 each time is very big.

On the one hand, there is a difference in mentality. After 500 liquidation, it is a wake-up call for yourself. Re-deposit means that the mentality will return to zero. If you start from the beginning, you will be cautious, and if you do it directly with 10,000 US dollars, you may not feel it at all if you lose 500. , I feel that I will continue to do it normally, and when I lose a little more, I have already started to panic. On the other hand, you can take a light position at the beginning of 500, and you can increase your position after there is a profit. It can be 1 lot, 1.5 lots, or even more than 2 lots. As long as you can be precise, if you do it right, the profit will be very high In the future, you can gradually increase the amount, and the 3rd and 4th hands will soon be ten times larger, but do you dare to continue to increase your position with 10,000 US dollars? In case something goes wrong, the market is strong, and it is estimated that 10,000 US dollars is not much, but if you start with 500, you are not afraid, and the liquidation is 500. It can be conservative, aggressive, and flexible. 10,000 US dollars is not easy. To increase the position, of course you have several million, and it is another thing to play with 10,000 US dollars.

Finally, the mode of heavy positions with small funds is also suitable for poor people to practice from the beginning, not everyone can start with 10,000 US dollars; it is also suitable for beginners to practice, as long as you insist on short-term small funds and heavy positions for a long time, through a lot of short-term practice, you can control the small funds. You will lose a lot of money, and you will definitely gain something after practicing for half a year. It is unrealistic for a novice to do medium and long-term trading as soon as he comes. Novices need a lot of transactions to train them out. However, many people have limited financial ability, so small capital training is very suitable. Novices who deposit too much money will lose money sooner or later.

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Last updated: 09/05/2023 19:26

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