Never cover a position, but you can add to it.
Never cover a position, but you can add to it. If you don't understand this principle, it's easy to fall into an extremely passive situation. The essence of these two things, one is passive, and the other is active. Let's explain it in two steps.
First of all, we have to understand one thing, and there are two ways to do it, one is called the left side, and the other is called the right side. The so-called left-hand trading is subjectively, I think this market will still fall, but from the bottom, I think it is not far away. So I adopted the strategy of batching ** and actively seeking sets. For example, it is divided into three parts, and the more it falls, the more you buy. And the right side of the trade is my subjective judgment that the stock price has reversed, then I think there will be a **, one-time** at the beginning.
What does these two transactions have to do with margin calls and positions?In batches on the left side**, the more you fall, the more you buy, this is called adding positions. Of course, there's nothing wrong with that, because that's what you planned it that way. But the margin call is different, the margin call is in the right side of the transaction, you originally judged that it should go up, but it fell. You yourself have obviously made a mistake, but not only do you not admit your mistake, but you have a luck mentality, which makes the mistake even more serious.
Therefore, there is an old saying in **, which is called**replenishment of a handful of losses. Let's spread this matter a little more, in fact, the behavior of replenishing positions is the embodiment of people's inferiority. For example, if you make a mistake at work, and the leader criticizes you, not only do you not admit your mistake, but you also make all kinds of excuses. For example, when you are playing a game, you start at a disadvantage, you don't want to turn the game, and you complain about your teammates, then this kind of person will not succeed in anything.
Therefore, many truths in life are the same, character determines the success or failure of your transaction, and only good people make good transactions.