Many friends ask me: 'Teacher, I've lost a lot, how can I turn it around?'
In fact, the vast majority of people lose money not because of the market, but because they lack a systematic approach.
Today I will share with you the five core steps I summarized. As long as you can stick to them, you can avoid 90% of losses and gradually move towards stable profits.
Step one: Capital management (easily overlooked)
Never go all in. Whether you have 1000U or 100,000U, remember: the amount invested in a single trade should not exceed 20% of your total funds.
Batch building. For example, if you plan to invest 2000U, you can enter in 3 phases, supplementing your position when prices drop, averaging out costs.
Leave room for maneuver. The market is always full of uncertainty; if you leave room in your position, you have the opportunity to respond to unexpected situations.
Saying: Never put all your eggs in one basket; your position is your shield.
Step two: Set take profit and stop-loss (the fundamentals of survival and profit)
Stop-loss: Do not let a single loss exceed 3-5% of your account. For example, with an account of 1000U, a maximum single loss of 30-50U should trigger a stop-loss; do not hold on stubbornly.
Take profit: Many people can’t help but exit completely after making 10%, but you can actually take profits in batches to lock in profits while still enjoying the trend.
Strictly enforce discipline: Those without stop-loss will ultimately be eliminated by the market.
Saying: First learn how not to die, then talk about how to make money.
Step three: Trend judgment (the dividing line that determines whether you profit or lose)
Look at the big trend and make small adjustments. Always go with the trend; 80% of those who go against it end up losing.
Methods to confirm the trend:
Look at the daily and 4-hour charts, first determine the overall direction.
Look for entry opportunities on the hourly and 15-minute charts.
Typical mistake: When the trend is up, you repeatedly short, and sooner or later you will blow up.
Saying: Go with the trend; the trend is your friend.
Step four: Mindset control (determines how far you can go)
Don't be greedy: After making a small profit, wanting to double it will often lead to being harvested by the market.
Don't be afraid: Small losses are not scary; what’s scary is not daring to enter and missing big opportunities.
Stay calm: Don't be influenced by messages in your friend circle or groups; you need to have your own judgment criteria.
Saying: Control your emotions, then you can control your account.
Step five: Establish your own trading system
Why do many people lose? Because they have no system of their own.
What does the system include?
Entry logic: Under what circumstances to go long/short.
Position management: How to enter and exit in batches.
Take profit and stop-loss: Specify percentages.
Review and summarize: Summarize the reasons for success and failure every day, and continuously correct.
Goal: To be able to 'know roughly how to proceed just by looking at the chart', without relying on others' signals.
Saying: The market is not about luck, but about a system.
The three core words of the market: Position, discipline, mindset.
Lastly, I want to say:
I have guided too many inexperienced students and found they all have the same issues—lack of methods, lack of discipline, and lack of guidance.
As long as you are willing to follow the five steps I wrote above, you can also move from losses to stable profits and slowly turn things around.
