Core Principles of Trading

There are no secrets in trading; the key to success lies in adhering to consistent rules. True traders focus on only two things: how to maximize profits when the market moves favorably after buying, and how to cut losses promptly when the market moves unfavorably.

Market predictions cannot be precise; only by relying on consistent rules can one gain an edge in the game of probabilities. It's not about predicting winning rates, but rather about 'small losses and big gains.' Buy to profit, run with the trend, and decisively cut losses against the trend.

Trading is about risking a certain cost for uncertain returns, and risk control is always at the core. I always follow the mantra 'plan the trade, trade the plan,' without getting entangled in entry points or pursuing precision. The focus on precise entry points is often overemphasized, stemming from a desire to catch the bottom and fear of cutting losses, which often leads to missed opportunities.

Regardless of the trading model, it must be validated over the long term for capital growth. Stick to the rules and don’t be swayed by market movements; the market will eventually reward you. Once a strategy is set, it must be strictly executed; otherwise, experience holds no value. Trading should simplify complexity; do not let market fluctuations lead you astray.