5 Theories of Trading That Every Billionaire Swears
1. The Risk-Reward Theory
"Never risk more than you can afford to lose, but always aim for more than you risk."
Smart traders don’t just chase profits. They calculate: If you risk $1, you better aim for $3. Always think in ratios, not emotions.
2. The Trend-Following Theory
"The trend is your best friend, until it bends."
Why fight the market? Big money flows in waves. Ride them — don’t try to surf against the current.
3. The Volume Confidence Theory
"Price tells you what, but volume tells you why."
Every spike or dip backed by big volume = real movement. Low volume? Might be a trap.
4. The Emotional Inversion Theory
"When you feel FOMO — don’t go. When you feel fear — draw near."
Crowd emotions are often wrong. Master yourself, and you’ll outtrade 90% of the market.
5. The Time-in-Market Theory
"Time beats timing — almost always."
Trying to catch tops and bottoms breaks more traders than it makes. Staying consistent wins long-term.
Final Words:
Trading is 20% charts, 80% mindset. Learn these 5 theories. Live them. Rewire your thinking.
And remember: Wealth isn’t built in a day — but it is built daily.
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