14 trading truths, a novice can become a master in seconds!
1. Probability awareness: All market analysis is based on probability. As long as you operate in the direction of high probability, you will have a chance to make a profit. Occasionally there will be small probability events, learn to accept losses.
2. The market is unpredictable: Don’t predict the rise or fall of the market, but have a response plan after the rise or fall. Regardless of whether the market is rising or falling, there must be a corresponding operating strategy.
3. Grasp the key features: operate decisively when there are obvious characteristic signals in the market, such as EMA moving average push, double bottom or strong outside line, etc. If there is no signal, do not act rashly.
4. Let go of your obsession with price: Don't think that a certain price cannot go back. The rise and fall of the market is a natural law, and any price may reappear.
5. Let the market verify your judgment: Many times we will have subjective predictions about the market, but we must wait for market behavior to verify our judgment before taking action.
6. Seeing is believing: market trends are objective facts. Don’t try to over-interpret or find specific reasons for the market.
7. Market cycle: The rotation of bull and bear markets is as inevitable as the change of seasons.
8. Only compare with yourself: Don’t compare your rate of return with others. As long as your account maintains steady growth, you will already be better than most people.
9. Missing the market does not mean losing money: No one can seize all opportunities. If the market does not give a signal, there is no need to mind, just continue to pay attention to the next wave of opportunities.
10. Risk management: Even if the winning rate of a certain transaction is as high as 70%, you must be wary of the remaining 30% risk of loss. Position management is crucial to avoid the risk of your account going to zero.
11. Listen carefully to news advice: Most news investment advice is unreliable. You should dig deep into the logic and not be influenced by superficial opinions.
12. It is better to enter the market too early than to enter the market later: most reversals and breakthroughs will fail, and operating too early will often lead to losses. Entering the market later may give you better opportunities.
13. There is also a chance for pattern failure: Even if a pattern that has been verified many times may fail, if you continue to operate in the original direction, you will have a chance to obtain a higher winning rate.
14. A good price does not equal a good deal: the best entry price may not necessarily bring the best results. Sometimes it is safer to enter the market after breaking through the key point.
