Grid trading came from the concept of coin trading. The meaning of grid is a grid pattern, and the trading method was named after the coin trading, where a specific section is divided into a grid for trading. This grid trading method is provided on coin exchanges, but not on stock exchanges, so it seems that each person is using it slightly modified to suit their own preferences.

Since the price at which you buy and sell is determined in advance, it is roughly understood when you see it as a picture, but it seems unsuitable to explain by highlighting the disadvantages. Therefore, this is the grid method I think of to depict the disadvantages. (Please understand that the image is strange. 😂)

Terminology

• Sea : US stock market - It becomes deeper when more funds come in and shallower when they come out.
• Fish : SOXL (쏙쓰리) - It moves left and right without knowing my heart. (SOXL, a friend of Bushri)
• Net : Investment amount by tier - Determines how many to cast. Surprisingly, only one can be caught in one net. (Number of shares)
• Net installation and recovery company : Securities company - It is a company that is authorized to catch fish in this sea. Operates by collecting commissions.
• Net installation machine : HTS, MTS
• Net recovery sensor : Automatic program - Users can install it or use the function provided by the company.
• Net installation location :
  Purchase % - Users set how tightly they want to install the net. (Distance between nets)
  Sale % - Users set where to catch fish. (Distance between fish and net)
• Shrimp : Money ($) invested in the US stock market - If more shrimp, which is SOXL's food, is invested, SOXL can go to the far sea. It also grows bigger and bigger as it eats shrimp. (Upward trend)

The picture I drew in the beginning lol

The picture I drew in the middle

Current version lol

There is a sea where you can catch fish if you throw a net. In this sea, you can catch fish by installing a net in a specific location through a company. This fish is a legendary fish that gets bigger and more expensive the further it is caught in the sea. On the other hand, if it is caught near the shore and then comes all the way up to the shore, it disappears like dust. ㅎㄷㄷㄷ To catch this fish, you have to buy more expensive nets depending on the location where the nets are installed, as the size of the fish changes depending on the location, and you decide where to throw the nets you bought. When fish enter the location where the net is installed, the fish will be caught automatically by the net retrieval sensor, or you can order the company to pull it up, and you will catch the fish, but you will sell all the nets and fish together. (Profit realization) Of course, you can also recover the net and sell it even if there are no fish at the location where the net is installed, but you can sell the net at the current price of the fish. If you install the net near the shore and forget to recover it, and the fish goes to the far sea, you can sell the net for a higher price than when you bought it, because the company also needs to recover the nets quickly to sell them to those who are putting nets in the far sea. Conversely, if you put a net in the far sea and the fish is near the shore, there are already many nets near the shore, so they don't want to buy the net. So, even though you bought the net at a high price, you might have to sell it at a low price. When the fish goes closer to the bottom, the net is still spread out (quantity is held), but the average price of the net at the current point in time becomes smaller. (Let the fish play in the big water!!) Let's detect risk through this.

Worried situation (feat. current situation lol)

• The fish only moves outside the net I installed. (Involuntary long-term investment / Involuntary value investing / Being stuck, etc., seem to be alternative expressions.)
• The water in the sea does not increase for a long period of time. (Upward trend failure during the period I endured the investment)
• The fish does not move well. (x3 leverage no volatility)
• The fish population is decreasing. (Trading cliff, difficulty in buying / selling)

Failed situation

I now know that there is an underground under the bottom.
But there was something under the underground.

• All the water in the sea has dried up. (Change in the stock market)
• The fish have come out of the water and become extinct. (Delisting)

Do you feel the worried situation and the failed situation by analogy?! These are things that can happen, so I hope you have thought about it more seriously. Many people simply placed their nets in the open sea at the end of 2021, and they are going through a difficult time in 2022. It would be nice to find a little comfort in knowing that there is one more comrade here. But thankfully, you've spread so many nets, and now you're starting to catch fish with nets near the shore?! You're up and down near 11-12, aren't you? I hope SOXL works hard until the end of the year.