To survive long-term through trading, one must consider investment risks and any potential occurrences!
The essence of leveraged trading is to gradually increase position size during profitable conditions and to gradually reduce position size during losses to minimize losses. This is the essence of trading!
Core One: The truth of trading is not about getting rich overnight, but about earning over the long term and living longer.
Core Two: A common mistake investors make is frequent trading, never looking for trading opportunities. As long as there is volatility, they jump in, which is undoubtedly wrong and will only lead to missing good positions and frequent losses.
Core Three: "There's a saying: I can pull you back from the cliff, but I can’t stop you from jumping every time." Impulsiveness is the source of problems. One must follow trading signals; not being impulsive is the first element of risk control. Learn to manage risk.
Core Four: Don’t let profits cloud your judgment. The key is to maintain profitability. Human desire is to want more, which can lead to forgetting risks and ultimately self-destruction. Therefore, one must always keep a clear mind, being cautious when losing money and even more cautious when making money.
Core Five: Everyone has a gambling mentality, often making trades based on their own indifferent judgments without proper position sizing. While all investors know the importance of setting take-profit and stop-loss orders, regrettably, many still frequently find themselves trapped or lose their profits.
Core Six: When facing significant losses, one always hopes to immediately turn things around. The more one trades, the bigger the loss. Attempting to recover all at once is equivalent to failure. After experiencing setbacks, one should immediately reduce trading volume or stop trading. It's not about how much you can recover now, but rather about regaining your confidence.
Core Seven: It’s okay to make mistakes; the key is to quickly extricate oneself. "If you keep the green mountains, you need not worry about firewood." Preserve strength, find the reasons, and make a comeback!
Core Eight: Trading must be diversified to face market changes. Those who make mistakes are often those who lack a strategy in trading. When wrong, they complain about difficulty and platform operations, always asking why? Isn’t life just an unknown? Never lose on strategy.