Want to make money in the B circle? The most important principle in trading is eight words: do not make small profits, do not incur large losses.
It sounds simple, but it's very difficult to do. For example, if you open a position with 20,000 and it rises to 21,000, you quickly take profits, feeling pleased with a 5% gain, only to see the market rise to 25,000. You made a 5% profit but missed out on a 50% increase. So you decide to hold onto your position next time to make big money, but the market drops back to 20,000, and after re-entering, it rises to 21,000 but you hold on without taking profits, only to see it fall to 19,000, forcing you to stop loss. Many people spend their entire lives stuck in this dilemma.
Is there a perfect method to capture both large and small market movements? Unfortunately, no. I choose not to make small profits and patiently wait for big opportunities. Trading is a long-term battle; whether it’s short-term or long-term, capturing a wave of 200% market movement and preserving most of the profits, and then capturing another 200% opportunity, means quadruple returns. If you make 200% and then lose it back, it’s like working hard for nothing. Remember, there are no missed opportunities in the market, only two outcomes: making money and losing money. Finding the right approach only increases the probability of making money; it doesn't mean you can get rich immediately.
This trading method requires a very high level of mindset: you must be able to patiently wait for the best moment and also dare to act boldly when the opportunity arises. The anxiety of missing out, the impulse to take profits when in the green, and the fear of losses all require long-term practice. If you want to play, you must be cautious and use profits to experiment. But to be fair, finding the right approach is already much better than those who trade blindly; many people spend their entire lives unable to find the right direction.
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