After tracking the operational logic of top traders for a period of time, a clear trading characteristic was identified: they almost all engage in short-term trading, entering and exiting quickly, and never hold positions overnight. Why are they so eager? Simply put, it's about transaction fees. The longer they hold, the more the costs eat into their profits.
What's even more interesting is their position-building logic—they all follow a "left-side" approach. When caught in a bad position early on, they don't fear it; instead, they continue to add to their positions in batches as the price drops. If one attempt isn't enough, they try twice; if twice isn't enough, they try three times. By continuously lowering their average cost, they wait for the market to rebound and then directly exit with a profit. It sounds very appealing, but this strategy has a fatal prerequisite: **the capital size must be large enough**.
Once faced with an extreme one-sided market, this strategy becomes high-risk. The more they add to their positions, the greater the risk exposure. A slight sudden drop can easily trigger a margin call. So, this tactic may seem stable, but in reality, it’s using the scale of capital to increase the probability of success, which small retail investors can't play.
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After tracking the operational logic of top traders for a period of time, a clear trading characteristic was identified: they almost all engage in short-term trading, entering and exiting quickly, and never hold positions overnight. Why are they so eager? Simply put, it's about transaction fees. The longer they hold, the more the costs eat into their profits.
What's even more interesting is their position-building logic—they all follow a "left-side" approach. When caught in a bad position early on, they don't fear it; instead, they continue to add to their positions in batches as the price drops. If one attempt isn't enough, they try twice; if twice isn't enough, they try three times. By continuously lowering their average cost, they wait for the market to rebound and then directly exit with a profit. It sounds very appealing, but this strategy has a fatal prerequisite: **the capital size must be large enough**.
Once faced with an extreme one-sided market, this strategy becomes high-risk. The more they add to their positions, the greater the risk exposure. A slight sudden drop can easily trigger a margin call. So, this tactic may seem stable, but in reality, it’s using the scale of capital to increase the probability of success, which small retail investors can't play.