Ten Rules
1. Risk control: Preserving the principal is the primary task, such as the rule specified in Gann's law that a single loss should not exceed 10% of the principal, avoiding excessive risk exposure and ensuring long-term survival in the market.
2. Trading discipline: Use programmed rules to counter emotional fluctuations, strictly execute the predetermined trading plan, and not be swayed by emotions.
3. Be patient: Like a cheetah waiting for its prey, wait for high-probability trading opportunities, and do not act blindly, as most of the time the market is in a non-trending or oscillating state.
4. Go with the flow: Trade by following the main trends in the market, establish positions when trends are confirmed, and do not try to go against the trend.
5. Emotion management: Through deliberate training, prevent emotions from interfering with trading decisions, and maintain calmness and rationality.
6. Capital management: Use reasonable position control, such as always assuming that the next trade will result in a loss to manage positions, while also increasing positions according to the Kelly formula to achieve a balance between offense and defense.
7. Stop-loss principle: Establish a three-dimensional defense system that includes price stop-loss, time stop-loss, and logical stop-loss; when market trends do not meet expectations, exit promptly to stop losses.
8. Systematic trading: Build your own trading system, clearly define when to trade and when not to trade, filter out market noise, and improve the winning rate and expected value of trades.
9. Contrarian thinking: When market consensus reaches a high level, consider reverse trading to exploit cognitive biases in the market for excess returns.
10. Continuous evolution: The market is constantly changing, and traders must maintain a learning attitude, continuously update their knowledge and trading strategies, and adapt to new market environments.
