Do you know why 90% of retail investors spend their whole lives trying to 'break even'?
To put it simply, it's not that they can't read the market, or that their skills are lacking; they simply don't understand how to manage money.
Last week, my account doubled again.
But what I want to emphasize is not the act of making money, but rather — I no longer use a 'grocery shopping mentality' in trading.
Many people trade as if they're at a market:
When prices rise, they fear missing out; when they fall, they think it's a bargain, resulting in selling at the lowest point and chasing at the highest.
1. The initial position should not exceed 5%, even if you're optimistic; start with a small exploratory trade.
2. Once you've made three times your stop-loss, immediately use profits to increase your position, rather than risking your capital.
3. After making money, take out 30% for every 10% increase, and let the remainder be managed by your stop-loss.
With these three principles, I transformed from a daily losing retail investor to someone who's turned their fortunes around.
Looking back now, those days of 'stubbornly holding without a stop-loss' and 'adding positions when prices rise' were just giving money away to others.
