Many short-term traders have experienced moments like this—after a loss, they are eager to "turn things around," but end up falling into an even deeper predicament.



This happened during the market movement in mid-December. The first long position was stopped out due to a misjudgment of the trend direction. Then, on the evening of the 14th at 19:00, impulsively, another long was opened without clear signals, and on the 15th, it was stopped out again. During the review, I realized—this was not a trading decision at all, but a struggle with myself. Trying to "save face" for the previous trade—this mindset is the most deadly in short-term trading. The first principle of short-term trading is never to hold onto a losing position. Once emotions control trading behavior, losses will snowball.

After realizing this, I forced myself to calm down. From the evening of the 15th to the early morning of the 16th, I gave up on the decline, took two days to readjust, and regained the short-term rhythm. This "stop-loss period" is crucial.

After calming down and reviewing the charts, the trading signals became clear. The main idea is: when the trend line shows extreme deviation and then returns to the median, combined with "overbought/oversold" indicators—especially when trading volume suddenly expands—then it’s a good opportunity to enter. Signals filtered this way significantly improve the win rate.

The following five trades were all profitable. Among them, the long position opened at 85,150 on the 19th has now been half closed, with the remaining part raising the take-profit line. I do not preset a fixed profit ratio but adjust in real-time based on indicators; when it hits the target, I close.

It’s a bit regretful that I opened a short at 89,166 at 22:00 on the 18th. At that time, I did see oversold signals and trend deviation recovery, but the sudden rebound on the 23:00 candlestick prevented the trade from reaching an ideal position. Trading is like this—perfect trades do not exist. The best we can do is improve signal accuracy, strictly follow discipline, and leave the rest to probability.
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