The Way of Trading - Six Core Principles:
1. Stay Calm: Trading is a marathon, not a sprint. Impatience can lead to blind operations and increased losses.
2. Go with the Trend: Do not fight the market; learn to wait, identify trends, and seize opportunities. Going against the trend will ultimately lead to failure.
3. Refuse Frequent Trading: Frequent operations increase costs and the probability of mistakes; experienced traders know how to wait for big opportunities.
4. Face Losses: Losses are a normal part of trading. Top traders focus on cutting losses and risk control rather than avoiding all losses.
5. Amplify the Win-to-Loss Ratio: Instead of focusing solely on win rates, pay more attention to opportunities with high potential and low losses, avoiding a single loss erasing multiple gains.
6. Only Make Money Within Your Knowledge: Stick to your area of competence, avoid opportunities you do not understand, and enhance your knowledge to gain in areas you excel. Participating in misguided opportunities is true failure.
