1. Theory of risk and reward
"Never risk more than you can afford to lose, but always aim for more than you risk."
Smart traders do not just chase profits. They calculate: if you're risking $1, you should aim for $3. Always think in ratios, not in emotions.
2. Theory of trend following
"The trend is your best friend until it breaks."
Why fight the market? Big money moves in waves. Catch them — don't try to surf against the current.
3. Theory of confidence in volume
"Price tells you what, but volume tells you why."
Every spike or drop supported by high volume = real movement. Low volume? It could be a trap.
4. Theory of emotional inversion
"When you feel FOMO — don't go. When you feel fear — get closer."
The emotions of the crowd are often wrong. Master yourself, and you will outsmart 90% of the market.
5. Theory of time in the market
"Time beats timing — almost always."
Attempts to catch tops and bottoms break more traders than they create. Consistency wins in the long run.
Closing words:
Trading is 20% charts, 80% mindset. Learn these 5 theories. Live them. Reprogram your thinking.
And remember: wealth is not built in a day — but it is built daily.
