1. Each trade should not affect the others, especially after consecutive losses. Your next trade can easily be influenced by previous losses. Since consecutive losses can happen quite easily, if you look at long-term statistics, out of a hundred trades, if thirty are losses, then those thirty losses will definitely be unevenly distributed. Losing three or five in a row is very normal, so you must stay calm and not let your previous profits or losses affect your next decision.
2 Don’t waste bullets. Shift your mindset from wanting to make a quick profit to first protecting your capital. Imagine you have a gun; you should only take a shot when you have a target in sight and see a rare opportunity.
3 The more favorable conditions you have when opening a position, the better. Whether it's patterns, indicators, or various timeframes, they should all align in one direction. The more conditions you meet, the greater your chances of winning, and you will naturally achieve that.
The fourth point is lazy trading. If you hesitate at the start, basically give up. I want to seize every opportunity, fearing that I might miss out on market changes, leading me to only look for chances that match my opening model. Profit and risk are not proportional, so give up on all meaningless trades.
5 Self-control is crucial. Genius traders try to let their prefrontal cortex perform rational thinking during trading. However, most retail investors are dominated by the amygdala and nucleus accumbens, which drive your emotions of greed and fear. Once your emotions fluctuate too wildly, your trading will become distorted. So, it’s essential to remain calm, rational, and think critically.
6 Don't easily increase your position, especially when you're losing. The more you increase your position, the greater your risk becomes. Similarly, don't excessively pursue winning ratios; being afraid of making mistakes and expanding your stop-loss distance is completely normal. Just follow your trading rules.
7 Avoid excessive monitoring of the market once you’ve placed a trade. Set your stop-loss and look at the price quotes less often, as large bullish and bearish candles can easily trigger your emotions. You might prematurely end a trade, especially when in profit. If you really want to monitor the market, focus more on the numerical quotes.
8 Trading is not everything in life; you still need to work and live. After a loss, if you rush to earn it back, the wrong starting point will definitely lead to failure. It's like a handful of sand; the tighter you grip, the easier it will slip through your fingers.