In trading, nothing is more frightening than a sudden retracement after a heavy position. EagleTrader trader Tang Haizhou recalled: "I have experienced countless liquidations, all because of heavy positions and fluke. The feeling that ten profits are not worth one loss is still fresh in my memory."

This experience made him understand that extreme market conditions are inevitable, but the real fear is not market fluctuations, but the lack of standardized responses. Once you are led by your emotions, your losses are often much greater than you imagined.

From trough to systematization

Tang Haizhou entered foreign exchange and gold trading at the end of 2017, while also doing domestic futures. At first, he just wanted to get rid of the shackles of dead wages, but he did not expect that the road to trading was far more difficult than imagined. He said frankly: "When I lose money, I always want to get my money back, and I always feel that I am only one step away from stable profits."

Multiple liquidations made him understand that relying on luck and fluke will never make it far. As a result, he began to carefully summarize the reasons for each loss, and gradually formed his own trading system - a system that can be implemented and can still maintain the principal under extreme market conditions.

Standardized response to extreme market conditions

For Tang Haizhou, every retracement of heavy positions is an opportunity to test strategic discipline. In the past, he often took orders due to fluke. As a result, ten profits were not worth one loss. But after continuous practice, he found a set of executable standardized response methods.

When the position is already heavy and the market suddenly reverses and makes losses, he will choose two methods: one is not to reduce the position, but sets an affordable small stop loss to control the total loss within the planned range; the other is to reduce the position and strictly follow the original stop loss rules. The key to Tang Haizhou's trading method is that no matter which one he chooses, he will no longer let emotions determine his operations and put an end to taking orders without a bottom line.

When a heavy position has been profitable but encounters a sharp retracement, he will choose to close all positions and give priority to keeping the profits. He explained: "At this time, the mentality can easily be affected by market fluctuations. If you don't make money immediately, all previous profits are likely to be lost."The vicious cycle of "one loss" has also brought trading back to the realm of discipline and probability.

Support Strategy and Discipline

Tang Haizhou's standardized response plan does not rely on intuitive judgment, but relies on clear rules and risk control standards. For each transaction, he will control the single risk within 10% of the tolerable risk, and the single-day loss limit is strictly stuck. If the retracement is within the controllable range, it can usually be recovered in 3-5 days; if the retracement is out of control and is not corrected in time, it will be very difficult. It may never come back.

Every transaction relies on technical analysis rather than intuition or luck. His core trading framework has only been optimized in details since 2019, with the goal of better implementing discipline. It is these principles that have allowed him to make stable profits from frequent liquidations in the past.

Psychological Resonance: The Human Dilemma of Trading

Tang Haizhou said frankly that trading is not only a strategy execution, but also a psychological game. He has been liquidated many times due to heavy positions and fluke, and he has also missed profit opportunities due to poor execution. However, he has learned to accept the weaknesses of human nature and avoid risks through rules.

He chooses to trade part-time, so that he can implement the strategy more rationally. Many traders find that they encounter the same dilemma in daily trading, and Tang Haizhou provides practical solutions.

Examination experience and practice.

Passing the EagleTrader self-operated trading exam, Tang Haizhou tested his strategies and disciplines in a simulated environment that replicated real market fluctuations. He deeply realized how dangerous the practice of "full position in one transaction and making enough money" also learned how to control positions, manage losses, and gradually amplify profits.

He shared: "In the exam, every market fluctuation is real, and any fluke and hesitation will directly affect the account equity. This allowed me to truly understand the importance of discipline and learn to remain calm and judgmental under high pressure. ”

For newly registered EagleTrader traders, Tang Haizhou’s advice is very direct: “First control the losses in a single transaction and a single day, and then you can gradually increase your profits.” "In the exam, each transaction is not only a test of trading ability, but also a practical opportunity to transform theory and experience into executable strategies. This simulated experience allows traders to build confidence in the real market and gradually achieve stable profits.