Without laws, there will be chaos. Rules and procedures are the prerequisites for perfect transactions.
There are many temptations in the trading market that make people impatient, but haste makes waste, and the more anxious you are, the more mistakes you will make.
Investment Prerequisites
1. Your life is guaranteed
2. Family life is guaranteed
3. Donât invest emergency money
4. Donât borrow money to invest
5. Donât invest money from your credit card
6. Invest your spare money and keep a certain amount of cash for emergencies.
Investment method: Full-time
1. If you have more time, you need to be good at your job.
2. More funds are needed
3. You can appropriately invest in high-risk and high-return products.
4. Diversify your investments (cryptocurrency, stocks, futures, funds, insurance, regular deposits, etc., learn to chase hot money)
Investment method: Part-time trading
1. Little time and average business.
2. The amount of funds can be more or less
3. Invest in low-risk products and long-term investments.
4. Diversify your investments
5. It is best not to invest in partnership.
Top 10 trading mistakes
1. Heavy position trading - heavy position will definitely lose;
2. Frequent trading-lack of technical guidance;
3. Going against the trend - low probability and high risk;
4. Locked position trading - do not accept the fact of loss;
5. Pull down or raise the average holding price - making a mistake on top of a mistake;
6. Measure the top and bottom without setting a stop loss - looking for reasons for mistakes;
7. When you are too perfect, you are empty; when you are empty, you are too perfect - pursuing perfection too much is aimless;
8. Listen to news and follow the trend blindly - lack of understanding of the market;
9. Not good at self-reflection, doubting the market - fear of the market;
10. Develop a long-term trading plan - the future is uncontrollable.
Reasons for major losses for beginners
1. Death due to heavy positions: it takes hundreds of times to increase from 10,000 to 100,000, but only one time to decrease from 100,000 to 0;
2. Imagine holding orders against the market trend, and donât fight against the medium and long-term trends;
3. Death due to frequent trading and liquidation;
4. Procrastination is equivalent to chronic suicide;
5. Those who die are too greedy.
The Importance of Trading Philosophy
1. Go with the flow, donât fight with the flowing water
2. Think big, start small
3. Forget the cost and enter and exit calmly
4. Donât be impatient or irritable, and donât be anxious about gains or losses
5. Risk first, do what you can
6. Keep calm and wealth will come naturally
(There is no such thing as a successful transaction, there is only whether you lose more and earn less or earn more and lose less. Being able to face losses calmly is the first step you need to take.)
Eight Right and Eight Wrong Markets
1. It is right to follow the trend and wrong to go against the trend (once a trend is formed, it is difficult to change in a short time)
2. Taking a light position is right and taking a heavy position is wrong - Position affects attitude, attitude affects decision-making
3. Be contented and be greedy. Greed is the enemy. Be contented and be happy.
4. Stop loss to protect profit is right, let it go is wrong - protect capital first, make money second
5. Objective operation is right, subjective analysis is wrong. Objective operation, follow the rules
6. Patience is the right thing to do, impetuousness is the wrong thing to do. Cultivate patience and act at the right time.
7. It is right to increase the position when there is profit, and it is wrong to increase the position when there is a quilt. Profit is the right direction, and being trapped is the wrong direction.
8. Being calm is the right thing to do, and being anxious about gains and losses is the wrong thing to do. The essence of trading is a clash of human nature and mentality.
Trading Advice
1. Establish your own set of trading rules that have been proven to be profitable, and constantly modify your trading rules to make them more perfect.
2. Observe discipline, overcome fear and greed, keep a low profile on your finances, remember that trading risks are huge, always respect the market, and recognize that you are just an insignificant member of the market.
Operating Principles
1. Donât do anything you donât understand
2. Do not make orders against the market trend, do not be greedy for small profits, do not make rebounds in a bad market, and do not make adjustments in a growing market.
3. Do not trade in a market with consolidation and fluctuation;
4. Operation without full warehouse;
5. Stop loss resolutely and without hesitation.
Money Management
1. Total holdings: less than 30% of funds
2. Opening a position: 5%-10%-15% of the funds
3. Adding positions: Generally, 20%-25% is used for a single product.
4. Stop loss: The maximum total loss of any single product is generally within 5%.
5. Do not add positions when you are losing money. Generally, consider adding positions only after you make a profit.
6. Only when you have a stable mentality can you make a profit
Keep in mind
1. Avoid using surplus funds for investment.
2. People who are timid, impulsive, and willing to lose but not to make money are not suitable for investment. Successful investors can control their emotions and have strict discipline.
3. Donât over-trade
4. Face the market squarely and donât fantasize.
5. Make appropriate suspension of trading, as a single leaf may block your view of the mountain.
6. Donât blindly follow the trend
7. When you are unsure, wait and see.
8. Act decisively and never get bogged down or miss opportunities
9. Forget past prices
10. Patience is also an investment. It means knowing how to wait and how to give up.
11. 95% of profits are created by 5% of trades
12. Long-term, stop loss, follow the trend, light position
It is most important to establish your own trading rules
1. Donât guess whether the market is bullish or bearish. Once the market gives a direction, it usually has a long way to go and will not change direction easily. Donât hope for a market change every day, but be committed to following the trend.
2. When looking at the direction and turn of the market, you must not draw conclusions based on the K-line of one or two days.
3. See the direction clearly, control the position, exit in time if wrong, and hold the position if right
4. Learn to exit with profit.
There are laws to follow and laws must be followed
1. Fundamental analysis determines the general direction of price, while technical analysis determines entry and exit points
2. Plan your trades, trade your plan
3. Summarize the investment method that suits you 4. Price trends tell us what to do (buy or sell)
5. Decide when to enter the market
6. Fund management determines how much money to invest in trading
7. Set stop loss and take profit to tell us when to leave the market
8. Hold profitable orders for the long term
9. All losing orders should be dealt with immediately
10. Stop loss is the life of trading
11. Following the trend is the way to survive in trading
Trading philosophy
1. Focus on one product;
2. The simpler the better. Simplicity is beautiful, simplicity is stable, and simplicity is easy to implement.
3. Develop the habit of reviewing the market after closing.
4. The entry and exit signals must be consistent.
5. Develop good habits of right-side trading.
6. Keep a steady mind and grasp the market trends.
7. Donât trade with heavy positions. Even mature traders should trade with light positions.
8. In a trending market, invest in the medium and long term; in a volatile market, invest in short-term investments.
9. Go long when the price is above the large moving average, and go short when the price is below the large moving average.
10. The relationship between position volume and price should be clear. If the price is rising, increase the position volume, go long; if the price is falling, increase the position volume, go short. Be vigilant when the position volume decreases when the price is rising, and be vigilant when the position volume decreases when the price is falling.
11. When going long, you should choose the strongest variety that is likely to rise, and when going short, you should choose the weakest variety.
The entire text of this article is for reference only, I wish you all good fortune đ€ #äș€æçç„ #BTC
