The ultimate principle of trading is 'simplicity is the ultimate sophistication', there’s no need for fancy tricks!
1. Trading mindset: When the signal has not emerged, do not complain, do not fantasize, do not be impatient; when the signal appears, do not be greedy, do not be proud, do not be arrogant. These few words contain the essence of trading.
2. Waiting for the right opportunity: True traders are good at waiting, not trading at every moment. Market opportunities are not always present; opportunities are granted by the market, not created by humans. Most people cannot endure the market's silence and seek trading excitement, forcing their entry when there is no trend, which often ends in failure.
3. Profit and risk control: After making a profit, many people relax their vigilance due to greed and arrogance, increase their positions, violate principles, and ultimately lose profits or even their principal. Trading should be steady and cautious, taking what the market gives.
4. Trading strategy: Trading should follow the trend, not go against it. Strike when it's time to strike, take profits when it's time to take profits, and exit when it's time to exit. Wise traders enter the market as they feel, without being attached to the outcome, and understand how to control their mindset. If trading leads to anxiety, one must reflect on whether they are following the trend or going against it, waiting for a signal or fantasizing about opportunities, trading based on strategy or emotions.
