Is there an infallible method for trading?
This is a question that many traders wonder about, and my answer is that there is no infallible method in trading.
Throughout my trading journey, I have realized that trading is not a game of certainty, but a game of probabilities. Every trading method has its winning and losing ratios, and that is the law of the market. Like everything in life, trading always has two sides – nothing is absolute.
However, there are ways to optimize and improve the winning ratio. To build an effective trading method, traders need to pay attention to the following 5 important factors:
1. Capital management – Profits should only be calculated based on the R:R ratio (Risk/Reward). If you do not fully understand this part, feel free to ask me.
2. Adhere to the trading method – If there is a clear system, you must stick to it and not break the rules.
3. Emotional balance – This is the most important factor, as trading psychology directly affects your decisions. The biggest mistakes in trading often come from not being able to control your emotions.
4. Knowing enough – Do not be too greedy. Profits in trading come from patience and knowing when to stop.
5. Discipline – Absolutely do not enter trades impulsively or chase the market without a plan.
If you apply the above 5 principles correctly, you will no longer need to search for an "infallible" method, because you have created the most effective trading method for yourself! 🚀