The premise for our investments:
1. Ensure personal life is secured.
2. Ensure family life is secure.
3. Do not invest with emergency funds.
4. Do not borrow money to invest.
5. Do not invest with credit card money.
6. Invest with spare money and keep a certain amount of cash available for emergencies.
Investment methods:
Full-time investment:
1. Ample time but need to be skilled.
2. More funds are needed.
3. It is acceptable to invest more in high-risk, high-return varieties.
4. Focus on a specific investment variety; concentration leads to professionalism.
Part-time investment:
1. Limited time, average skill level.
2. Funds can be abundant or limited.
3. Invest in low-risk varieties for the long term.
Top 10 investment pitfalls:
1. Full position trading - a full position must lose.
2. Frequent trading - lack of technical guidance.
3. Trading against the market - low probability, high risk.
4. Lock-up trading - retail investors find it hard to control.
5. Lowering and raising the average position price - adding mistakes to mistakes.
6. Test highs and lows, do not set stop-loss - finding excuses for mistakes.
7. If you finish long, go short; if you finish short, go long. Pursuing perfection can lead to aimlessness.
8. Trusting messages and blindly following the trend - lacking understanding of the market.
9. Lack of self-reflection, doubting the market - leading to fear of the market.
10. Develop a long-term trading plan - the future is uncontrollable.
The philosophy of successful investment:
1. Go with the trend, the water does not fight.
2. Focus on the big picture, start with the small details.
3. Forget the cost and enter and exit calmly.
4. Do not rush, keep a calm mind without gains or losses.
5. Risk first, act according to your ability.
6. Stay calm, wealth will accumulate.
Principles for beginners:
1. For incomprehensible market conditions, consult an instructor rather than trading arbitrarily.
2. Absolutely do not trade against the market; do not be greedy for small profits, do not trade on rebounds in a downtrend, and do not trade adjustments in an uptrend.
3. Do not trade during consolidation and fluctuation periods.
4. Do not operate with a full position.
5. Be decisive with stop-loss, do not hesitate.
Eight truths and eight mistakes in the investment market:
1. Correct is to operate in line with the trend, wrong is against the market (once a trend is formed, it is hard to change in the short term).
2. Light positions are correct, heavy positions are wrong - position size impacts attitude, and attitude influences decision-making.
3. Being content is correct, greed is wrong - greed is the enemy, contentment is the key.
4. Correct is to protect profits with stop-loss, wrong is to let it go - preserve capital first, profit second.
5. Objective trading is correct, subjective analysis is wrong; follow the rules with objective operations.
6. Waiting and patience are correct, impatience and impulsiveness are wrong; cultivate patience, act at the right moment.
7. Adding positions with profit is correct, adding positions with losses is wrong; profit is the right direction, while being stuck is the wrong direction.
8. Calmness is correct, anxiety over gains and losses is wrong; the essence of trading is the clash of human nature and mentality.
Advice from the instructor to investors:
1. Avoid using all funds for investment.
2. Timid, impulsive, willing to lose but not to earn, is not suitable for investment. Successful investors can control their emotions and have strict discipline.
3. Do not overtrade.
4. Face the market realistically; do not fantasize.
5. Make appropriate pauses in buying and selling; a single leaf can block your view of the mountain.
6. Do not blindly follow the trend.
7. When uncertain, observe for now.
8. Be decisive; do not get stuck or miss opportunities.
9. Forget past prices.
10. Patience is also an investment; learn to wait and learn to give up.
Mature trading judgment:
1. Stable positive returns.
2. Signals should have stability and closure.
3. The controllability of risk.
4. Replicable trading models.
Mu Qing believes that establishing your own trading rules is the most important.
1. Do not guess whether the market is bullish or bearish; once the market gives a direction, it generally has a long way to go and will not easily change direction. Do not hope for the market to turn; focus on following the trend.
2. Observe the market direction and turning points; you must use the moving averages of large cycles and breakthroughs in patterns; absolutely do not conclude with one or two days of candlesticks.
3. See the direction clearly, control your position; exit timely when wrong and hold steadfastly when right.
4. Learn to exit profitably.
5. Overcome fear and greed.
Mu Qing's summary of over 10 years of trading experience:
1. Focus closely on one variety.
2. The simpler the indicators, the better (moving averages, trend lines). Simplicity is beauty, simplicity is stability.
3. Develop a habit of reviewing after the market closes.
4. Entry and exit indicators must be consistent.
5. Develop a good habit of right-side trading.
6. Maintain a stable mindset and grasp the market trend.
7. Do not trade with heavy positions; even mature traders should trade lightly.
8. In trending markets, trade medium to long-term; in volatile markets, trade in waves.
9. Go long when prices are above moving averages, go short when prices are below moving averages.
10. Understand the relationship between position size and contract price: increase positions when prices rise, increase positions when prices fall. If positions decrease when prices rise, it indicates a reversal; if positions decrease when prices fall, it also indicates a reversal.
11. In bullish periods, trade long when there are more rising cycles; in bearish periods, trade short when there are more falling cycles.
The above are the trading experiences shared by Mu Qing today. Often, your doubts cause you to miss many opportunities to make money. If you do not dare to boldly try, engage, and understand, how will you know the pros and cons? You must take the first step to know how to proceed. A warm cup of tea and a piece of advice; I am both a teacher and a friendly conversationalist.
Fate brings acquaintances; knowing each other is destiny. The instructor firmly believes that those fated to meet will eventually recognize each other, while those without fate will pass by. The journey of investment is long, and momentary gains and losses are just the tip of the iceberg. One should understand that even the wisest can make mistakes, and even the foolish can have moments of success. Regardless of emotions, time will not pause for you. Pick up your discontent, stand up again, and move forward.
Giving others roses leaves a fragrance in your hands. Thank you for your likes, follows, and shares! Wishing everyone financial freedom by 2025!
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The secrets of martial arts have been shared with you; whether you can become famous in the world depends on yourself.
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