What does the correct trading path look like?
Sharing a real example of going from a beginner to stable profit,
after reading this, you should know what the correct trading path looks like.
Our first conversation was in May of last year. He said that he only learned some basic knowledge about trading and considered himself a beginner. After trading for about six months, he was overall at a loss. He couldn't even be sure if trading could truly lead to stable profits in the end.
After our discussion, I told him to take three steps.
First step: Start with a demo account for training. Achieving stable profits indicates that he has passed using the trading system.
Second step: Trade with a small amount of real capital. Achieving stable profits indicates that he has passed the initial mindset test.
Third step: Gradually increase the position size.
Fortunately, he followed my advice.
After 4-5 months, he completed the first step, and by the end of last year, both training and simulation were showing stable profits.
However, once he started trading with real capital, he still faced losses. I told him to continue training and to organize any questions he had into a document and send it to me. He was also diligent and followed my suggestions.
After the New Year this year, he told me that he was no longer losing in real trading, and small positions were yielding stable profits, but once he increased the position size, he started to incur losses again. I said this indicates that he has mastered the system without basic issues, but his mindset still needs refinement. I mentioned a few points for him to consider after increasing his position size:
1. Don’t count the money; after entering the market, don’t keep staring at the fluctuations, otherwise, the sense of gain and fear will intensify, making it hard to focus on the correct execution, and correct actions can ensure results.
2. Be decisive with stop-losses; with larger positions, unrealized losses will grow. Don’t have a gamble mentality when it’s time to stop the loss. Avoid arbitrarily extending the trading period.
3. After making profits, don’t become complacent. Always maintain complete awareness; even with consecutive profits, don’t lower your vigilance.
4. Look at the losses after increasing position size dialectically to understand the importance of mindset and operation.
After several exchanges, it was clear that he was becoming more confident, and the results of his trades were improving.
Just a few days ago, he messaged me saying that from May until now, his real trading has basically been profitable, with his account growing by 50%. Although it’s not too much, the key is stability.
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