Successful traders are rational. Successful individuals trade for profit, while unsuccessful ones merely indulge and perish, often unaware of how they met their demise. They are destined to be expelled from the market without knowing where to go.

When choosing a trading market, it is essential to remember that whether it is stocks, futures, or cryptocurrencies, every trading instrument you select must meet two criteria: liquidity and volatility. Liquidity refers to the average daily trading volume of a certain instrument compared to other similar instruments. The higher the trading volume, the easier it is for investors to enter and exit.

You may be able to establish a profitable position in a lightly traded stock, but you may find it challenging to exit profitably, potentially paying a high price for trading slippage.

Volatility refers to the magnitude of price fluctuations of the trading instrument. The greater the volatility, the more trading opportunities there are.

For example, many utility stocks have high liquidity but are difficult to trade due to their low volatility — their price range is too narrow. If you want to build a long-term investment portfolio, stocks with low volume and low volatility may be a good investment choice, but they are not suitable for trading.

Remember, not all markets are available for trading. Even if you have a strong intuition about the future trends of these markets, they should also possess good liquidity and volatility. #币安HODLer空投PLUME