The trading principle can be summarized in 16 words:
Keep it simple, go with the trend, cut losses in time, let profits run.
Keeping it simple means that an increase is an increase, and a decrease is a decrease. Judging increases and decreases is very easy. If multiple moving averages are trending upwards, it's an increase; if they are trending downwards, it's a decrease. It's that simple—don’t overthink it.
Going with the trend means that when prices rise, you go long, and when they fall, you go short. It’s not about being right when prices rise, but rather about the magnitude. When prices rise, there’s a greater probability that they will rise a lot and fall a little. Only significant movements yield substantial profits.
Cutting losses in time means that if you're wrong, you need to cut your losses.
Letting profits run means that when you make money, you should hold onto it.
In reality, most people lose money by doing the opposite: analyzing this and that, going against the trend, rushing to run when they make a profit, and stubbornly resisting when they lose.
Most examples of people making big money are basically based on these sixteen words. This model often results in losses because big market movements are not common. It goes against human nature; once you have a trend, you can ride it from start to finish, and you can get rich in life twice.
Trading is very simple, but very hard to do. I often reflect on it myself.
