Huo Xing Finance reports that on April 14, Yi Lihua, founder of Liquid Capital (formerly LD Capital), posted: "There is no 100% correct approach to investing and trading; otherwise, someone would have become the world’s richest person very quickly. Over the past year, Liquid Capital called a bottom at $1,450 for ETH, held through a black swan event until prices reached over $2,000, exited at the top before $1,011 at $4,500, failed to bottom at $3,000, and now坚持抄底 below $2,000. Even if you get four calls right and one wrong, that one mistake can cause problems. The core of trading isn’t about being right every time—it’s about preparing proper risk management and strategies for all possible scenarios."
Yi Lihua Emphasizes Risk Management Over Perfect Trading Accuracy
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Summary
Yi Lihua emphasized the importance of risk management in trading, stating that perfect accuracy is impossible. He cited Liquid Capital’s Ethereum trades, including a $1,450 purchase, a $4,500 exit, and a missed $3,000 entry. Yi noted that even with four correct decisions, one error can lead to problems. He stressed the need for strategies that balance risk-to-reward ratios across all scenarios.
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