After more than four years of trading experience, I have accumulated several trading lessons

Have you ever heard of the "Pareto Principle"? It is also the 80/20 principle that everyone often mentions, which means that 80% of valuable results are achieved through 20% of efforts. What does it mean?

​For companies, 80% of profits come from 20% of their customers;

​For software, 80% of its use comes from 20% of its functions;

​And for traders, 80% of profits come from 20% of their transactions.

​However, there are too many aspects that traders need to pay attention to, such as entry, exit, risk management, position setting, fundamental analysis... So, what is the 20% that can bring the greatest profit and the most attention from traders?

This is the purpose of today's article. The following trading suggestions are exactly what you need to make a profit.

​1. Don't hastily exit a trade because of changes in a smaller time chart

​If you trade an intraday chart, view and manage transactions on the intraday chart. If you look at the 4-hour chart at this time, you may be scared and quickly exit the transaction. This is a mistake many people make. Look at the following picture:

(Intraday chart, you go long when the price breaks through the resistance level)

(Switch to the 4-hour chart and you are scared and quickly close the order)

(Go back to the intraday chart and find that it is just a pullback)

2. Stop loss is placed in the area where your trading setting fails

​Don’t set the stop loss based on the range of losses you are willing to bear, but set it based on the market structure, that is, when the stop loss is triggered, you know you are wrong.

3. Following the trend trading can increase the possibility of profit

​In a trending market, prices always show up and down wave movement, which we can compare to:

​Advancing movement-changes in the direction of the trend

​Corrective movement-short-term price correction changes

​Therefore, trading with the trend can maximize your profits.

4. Find the trading method that suits you best

​If you love trading the market and let it occupy a lot of your time and life, then long-term trend tracking is not suitable for you. If you have a full-time job and do not have a lot of time to observe and analyze the market, then day trading may not be suitable for you because you will not be able to focus and it is easy to miss trading opportunities.