My Trading Transformation: From a Daily Loss of 50,000 to a Monthly Profit of 500,000 Through Strict Rules
In the waves of trading 🌊, I once drifted like a rudderless boat, losing badly; now, with a few strict rules, I have found my way forward and achieved profitable leaps. Below are my trading growth and insights on these strict rules 📝.
## Rule 1: No Heavy Positions, No Chasing Trends, No Fear of Missing Out
In the past, my trading state was completely in the 'chasing highs and cutting losses' mode: I would go all in whenever there was a hot spot 🔥, fearing to miss out on good news, constantly switching stocks, being led by market emotions, resulting in inevitable losses.
After enough hardship, I made a complete turnaround 💡. Now, I always leave some positions open as a backup, never betting all my wealth, allowing myself room to make mistakes and adapt to changes; calmly observing market structures, analyzing fund flows and sector rotation logic, instead of blindly following trends; I would rather miss out than fight and scramble, understanding that market opportunities are endless, and impulsively chasing highs is the 'culprit' of account shrinkage. Only by being steady can one go far 🚶♂️.
## Rule 2: Only Trade Three Structures I Understand
In trading, 'understanding' is far more important than 'quantity'❗️ I focus only on three types of trends that I can see through and have confidence in:
- Volume Breakout from a Consolidation: When a stock price consolidates for a long time at a platform and suddenly breaks out with strong volume, it is often a signal of powerful fund support 📈, indicating the start of a new trend, such as stocks breaking out of long-term consolidation ranges, which have a high probability of further increases.
- Pullback without Breaking Previous High: After a rise, if the stock price pulls back to the previous high point and stabilizes without breaking it, it indicates that the previous high support is effective, and there is strong fund support, providing an opportunity for a second entry and profit-taking 🚌.
- Long Green Candle after Volume Compression: During a period of consolidation, if trading is light and the floating stocks are sufficiently cleared, a sudden increase in volume leading to a long green candle indicates that the main funds are exerting pressure, and the trend is likely to reverse upwards 🔄.
If it’s not one of these three structures, I resolutely won’t touch it, guess, or indulge in fantasies ❌. The less I trade, the more precise I become; focusing on familiar patterns and concentrating my limited energy can improve my win rate, allowing me to 'steady the ship' in the market 👊.
## Rule 3: Never Hesitate on Stop-Loss, Don’t Compete with Myself
In the past, I often suffered from 'wishful thinking'; when stocks dropped, I repeatedly told myself, 'Just wait, it will come back,' resulting in deeper losses. Not only did I lose money, but my mindset also collapsed, and my trading went completely haywire 😵.
After realizing the pain, I strictly enforce stop-losses 🚦: I set stop-loss levels in advance, and once the stock price falls below, no matter how reluctant I am or how many reasons I find, I resolutely exit without changing the rules or delaying. Because I understand that losing money is a normal part of trading, but losing my mindset will lead to emotional influence in subsequent operations, compounding errors. Preserving my mindset is essential for future recovery 🃏.
Many people are obsessed with finding 'secrets to making money'; after struggling in the market, I understand: what truly saves you is not complex techniques, but ironclad trading rules ⚙️. The more resolutely you execute these rules, the more stable your account will be. These strict rules are lessons I've learned at a high cost, shared with everyone, hoping we can all adhere to the rules in trading, maintain profits, navigate through the ups and downs 🌊, and reap our own wealth 🍒.
