A good trading strategy is the key to stable profits!
1. Key Points to Monitor
After opening a position, focus on the stop-loss level and trend lines, discarding unrealistic fantasies of bottom-fishing and peak-escaping. Big money is often nurtured in patient waiting, rather than born from frequent monitoring and turmoil.
2. Stop-Loss and Maintaining Gains
At the moment of stop-loss, be decisive; do not hesitate. During the holding phase, be as steady as a rock and keep your position. Setting a discipline to cut losses at 5% is far more effective than studying 100 types of technical indicators. Understand that the extent of losses is controlled by yourself, while profits are influenced by the market.
3. Key Recognitions for Traders
① Position Management First
Compared to getting entangled in buy and sell points, position management is the cornerstone of stable trading; effectively allocating positions can resist risks.
② Focused Strategy Execution
Rather than frequently changing trading strategies, it is better to consistently practice one strategy over three months; focused execution often yields better results.
③ Market Profit Laws
In the market, 20% of the trends contribute to 80% of the profits. During the remaining time, learn to wait patiently for profitable trends to arrive.
The market is like a strict examiner, treating various forms of arrogance and impatience in trading, but it will always reward those who adhere to the rules and execute diligently. Excessive pursuit of perfect trades often backfires; beginners may go further in the market by adhering to mechanical operations. Remember, consecutive small losses are not to be feared; seizing a trend can turn the situation around. The worst is to have illusions when it’s time to cut losses and to panic and shake when it’s time to hold gains!
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