After wandering in the world of trading for a long time, I gradually summarized the five key characteristics that an excellent trading system should possess. Today, I will share them with you.
Reasonable control of positions, patiently waiting
In the trading circle, many people are eager for wealth; not opening a position in a day feels like sitting on needles, fearing they might miss a big market opportunity. However, opening a position cannot be solely based on time but should depend on the market conditions. Ignoring the market and forcing a trade will almost certainly lead to losses. Although there are many market opportunities, few are truly suitable for us. Therefore, "waiting" is crucial. Patiently waiting for the right moment, striking precisely, and reducing unnecessary stop-loss orders will naturally lead to increased profits.
Overcoming greed, securing profits
Greed is a major enemy in trading, especially prominent in contract trading. Market fluctuations are unpredictable, and many people, after doubling their positions, refuse to take profits due to greed, ultimately losing not only their profits but possibly even their capital. Remember, when it’s time to act, do so; securing profits is the true goal.
Strictly adhering to profit and loss limits, seeking stability to win
Setting profit and loss limits is the core of contract trading and the secret to my high return rates. Before analyzing the market and opening a position, I always clarify my profit and loss points, weighing the risk-reward ratio before firmly setting them. This way, regardless of how the market fluctuates, I can remain steady, strictly stopping losses to protect my capital while taking profits in batches to lock in gains.
Scientific position control, prioritizing capital preservation
Why should we control our positions? Simply put, if you gain 20% and lose 20%, with a 50% accuracy rate, after 40 cycles, your assets would be halved; accounting for transaction fees would lead to even greater losses. Therefore, it is essential to manage position sizes well. Keeping a fixed capital is a good approach; withdrawing profits in a timely manner and putting real money in your pocket is reassuring.
Practice and review for continuous improvement
Once you master the relevant techniques, practice and summarizing through reviews are key to building a trading system. It’s essential to review every trade and every week, continually enriching the reasons for opening positions and refining the profit and loss points. A trading system is not built in a day; it requires continuous summarization through practice. Each loss is tuition for growth; the important thing is to learn from it, ensuring our trading journey becomes more stable.
I hope these characteristics can help everyone on their trading journey, and let’s steadily move forward together in the trading market!
