Today is the 335th day of my dynamic posts, and I haven't missed a single day. Each one is not done half-heartedly, but rather with careful preparation. If you think I am a serious person, you can follow me, and I hope the content every day can help you. The world is big, and I am small, so please follow me to avoid difficulty in finding me.

Why do 99% of retail investors end up with liquidation in the end?
First, let's take a look at a set of data, which comes from the trading data statistics of the book "The Realm of Clarity."
1. If all stop-loss orders are not closed, there is a 98.8% probability of turning a loss into a profit within the next two weeks.
2. If all take-profit orders are not closed, there is a 91.3% probability of achieving greater profits within the next two weeks.
In the last hour, the order was stopped out, and in the next hour, the market reversed. The originally losing order, which was not stopped out, immediately turned profitable. I'm sure everyone has had similar experiences. Stopped out with a loss of 1000, but if I hadn't stopped out, I could have made 1000 instead. The account fluctuated by 2000 in net value due to this win and loss. At this moment, I can't help but curse this damn market several times; what a loss.
So should we set a stop loss or hold the position in the trade?
Let's talk about this issue today.
Actually, the answer to this question is very simple; you will know it after going through a dozen trades. When you go through a trade and the market moves as you wish, it comes back, with no losses and even some profits. You feel that you did well this time.
Holding three positions, the market went as I wished, and it came back, with pretty good profits. You feel that holding positions is not as terrifying as it seems; 80% of the market is volatile, and after a little resistance, it comes back. Holding five positions, the point of the market moving in the opposite direction is too large, which feels a bit like it won't return. You got scared, feeling that the market wouldn't come back, so you had to cut losses. One cut loss consumed all the profits from the previous four positions and even resulted in a loss.
You take on ten trades, and the market moves in the opposite direction. You are unwilling to accept it and increase your position, but your additional investment has no effect, and the market continues to move against you. Then you watch as your losses grow larger and larger, not knowing what to do. After struggling for a few days and seeing your account losses reach a certain level, you are forced to cut your position.
If there are no long lessons learned, after enduring ten times, one continues to bear it. The eleventh time may be fine, the twelfth time may be fine, even the twentieth time may be fine. However, by the fiftieth time, the one-hundredth time, the final outcome will certainly be only one, and that is liquidation.