One of the most important hidden functions of position management is emotional management!
- 2025年5月27日
- Posted by: Eagletrader
- Category: News
Position management involves the way traders allocate funds in a specific asset or throughout their portfolio. Good position management can help investors control risks, protect capital, and remain stable when markets fluctuate. In addition, excessive positions may lead to emotional decisions by investors, such as panic selling or greedy holding. So reasonable position management also helps traders stay calm and follow established trading plans.
In this interview with our EagleTrader trader, Chen Zihao, who has 8 years of trading experience, also mentioned this specifically, and even believed that the correct position is the key to achieving long-term profits. Next, let’s take a look at how he maintains his own advantages in the market through position management.
Chen Zihao’s trading career
Chen Zihao’s trading career has spanned multiple markets, from stocks to futures to foreign exchange, and has accumulated a lot of experience in every step. Let meLet’s review his trading history together to understand how he can move forward steadily in the constant changes.
Q1:What motivates you to stick to trading or make you choose a trading?
“One is derived from the original charm in transactions, and I am attracted as soon as I contact them.
The second is my personal growth environment, and I feel that this thing is very suitable for me.
The most effective way for people in small cities to touch the outside world is the Internet, and foreign exchange just fits this point. The key is that night shifts will not affect work during the day. ”
Q2: When did you engage in foreign exchange trading?
“I started to come into contact with stocks in 2013, then came into contact with futures, and forex for about 2016, and have been engaged in foreign exchange trading for about 8 years.”
Q3. After passing the exam, are you going to make a profit account in a full-time or part-time state?
“If you can, it is definitely the best full-time job. I am also in contact and cooperation with some offline trading platforms, and the most important thing is to study. At present, I will work part-time for the time being, and trade at night like before, so that I can face the transaction with a more ordinary attitude.
“
Chen Zihao’s trading strategy essence
In the world of trading, strategy is the key to success. Chen ZihaoIts unique perspective and profound understanding have built its own trading strategy. How did he cleverly use position management and emotional control to achieve long-term and stable profits?
Q4.What do you think is the key to long-term stable profit in trading?
“The core should be position management. The most important hidden role of position management is emotional management and mentality management. As we all know, the central state of trading accounts for a large proportion. In fact, mentality is not a very false thing. It is hidden in position management. Although heavy positions may make huge profits, it will cause mental imbalance and trading technology to be deformed. A light position can avoid emotional trading, but it will waste large profits in a smooth market. In addition, when you need to increase your positions and when you need to reduce your positions, you also need to have a deep understanding and understanding of the market. Therefore, I think how to hold the right positions is the core of trading and the key to long-term stable profit.”
Q5. When you make your final decision, what are the three items: technical analysis, fundamental analysis, intuition and experience respectively in your trading decisions?
“Technical analysis 70%, fundamentals 10%, intuition, experience and luck account for 20%. “
Q6. When was the last major modification of the strategy you are currently using, and what are your plans to improve it in the future?
“There are basically no major modifications, mainly because of the control of positions. In the future, some detailed improvements to the system need to be made, such as clearer entry and exit points. I think it is more about my own improvements, such as training of basic K-line skills, training of chart reading ability, and training of review ability. For naked K-line traders, a solid K-line foundation is more important.”
Chen Zihao’s risk management method
<img style="max-width:100%!important;height:auto!important;" decoding="async" class="img-thumbnail" src="https://www.kb010.com/static/20250207/npc0dhf232j.jpg" alt="The most important hidden role of position management isEmotional management! " title="The most important hidden role of position management is emotional management! "//
In the EagleTrader exam, the importance of risk management is self-evident. In the face of market fluctuations, how will Chen Zihao traders cleverly avoid risks?
Q7.How did you eliminate the luck factor in your transaction?
“Waiting for the market that suits you and is most confident about comes out before trading, which increases your chances of making a profit.”
Q8.Suppose a position is added very heavily and a large loss unexpectedly occurs, and it is still early to exit the plan. How will you set up a stop-profit and stop-loss and position plan?
“Select the position based on losses, the basic operation. Change it to a small position and continue to trade slowly. Stop loss and profit or follow the trading system, but the position will be cleared.”
Q9.Suppose a position is added to a heavy weight and you make a lot of money as planned, but suddenly there is a large profit retracement, what will you do?
“Stop trading on the same day. After the next day or a few days, analyze the reasons for the big loss, adjust your mentality before continuing to trade.”
Q10. Assuming the risk that can be borne is 100 points, how much risk do you expect to take on average for each transaction?
“20% to 30% risk.”
Share of Chen Zihao’s trading experience
Every transaction is an opportunity to learn. Chen Zihao trader has experienced countless ups and downs on the road of trading. His experiences and lessons are valuable assets for every newly registered candidate. So what advice will he give to our traders?
Q11. Have you ever exploded? Can you introduce the situation and mentality at that time?
Answer: I have experienced countless liquidation. The big reason is the problem with position management, the mentality imbalance caused by heavy positions, worrying about gains and losses, technical deformation, retaliation trading, and emotional trading. Every time I lose my position, I hate that I can’t control myself and that my position is too heavy.
Q12. Do you prefer a stable market or a more volatile market? Can you describe your understanding of volatility?
“I prefer smooth and volatile markets. For example, the gold market. Larger volatility means more risks and more opportunities.”
Q13. Your trading experience can tell you how long will it take to return to the previous highest point of net value after each maximum retracement? ?
“Time from 1 to 2 weeks.”
Q14. What will your biggest gain in taking our exam this time?
“Because of the constraints of the examination rules, we pay more attention to the retracement in trading and have a more understanding of controlling retracement.”
Q15. Do you have anything you want to share with newly registered EagleTrader traders?
“Don’t think too much, stick to persist and then persist!”
When talking about the experience of liquidating positions, Chen Zihao trader said that mistakes in position management are often the main reasons for emotional imbalance and making wrong trading decisions. In several questions, Chen Zihao traders also mentioned the importance of position management many times, which demonstrated his steady trading style and ability to learn from experience.
Through this EagleTrader trader interview, we sincerely hope that candidates can learnChen Zihao’s trader has a deep understanding of position management and is able to integrate his strategies and methods into his trading practice. Continuously optimize your own risk control strategies, improve trading skills, and achieve long-term capital growth.
If you are also inspired by these experience sharing and are eager to show your trading talent, then come and join us! Scan the QR code below to log in to the mini program or click: https://www.eagletrader.com.cn/ Visit the EagleTrader official website and register with our official customer service for the trader selection exam. EagleTrader looks forward to exploring the endless possibilities of the market with you!
