1. The importance of defensive awareness
In the journey of trading, becoming a trader with a strong sense of defensive awareness is a key transformation that novices must undergo. Many novice traders are misled by a desire for quick profits, hoping to make money quickly and even harboring fantasies of 'getting rich overnight.' However, a more practical and feasible mindset should be: maximize the protection of your funds. Offense is the best defense, which in trading means only trading under favorable conditions, while protecting funds at other times and staying away from the market. Maximizing the protection of funds is the key to success in trading.
2. Reduce excessive monitoring of charts
Frequently checking charts and constantly monitoring trades often negatively impacts trading. Overly focusing on charts may lead to impulsive trading, such as increasing positions or exiting early. The simplest approach is to set a trading plan and then forget about it. In trading, the less interference with operations, the better. Simply follow your trading plan and let trades proceed as planned; that is the true wisdom of trading.
3. Maintain independence in trading
The result of the previous trade should not affect the next trade. Each trade is unique, and trading results are randomly distributed. Staying calm and not being swayed by short-term trading results is key to maintaining a stable mindset and achieving long-term success.
4. Simplify trading strategies
In trading, moderation is key. Many traders often make the mistake of overdoing things. Learning to be appropriately 'lazy' is equally important. Learn to filter out market noise and only choose the highest return opportunities. The best trades are always the most obvious and intuitive ones.
5. Have a clear exit plan before entering a trade
Before trading, one of the most important tasks is to determine the exit plan. Establishing a strict profit and loss plan is the best approach. Such a plan can provide you with clear guidance, allowing you to stay calm and execute the plan in both profit and loss situations.
6. Avoid valueless trades
Valueless trades refer to trades where the risk and profit are disproportionate, usually occurring when traders are in a blind and frequent trading state. Such trades often lead to losses greater than profits, affecting the trader's mindset and even trapping them in a vicious cycle of losses.
7. Maintain high discipline
High discipline plays a crucial role in trading in financial markets. It refers to traders following a series of clear rules and principles to ensure effective risk management, achieve investment goals, and avoid negative consequences caused by emotions and arbitrary decisions.
Negative consequences.
8. Maintain distance from the market
Overtrading is often a shortcut to losing funds, and it is crucial to remember this. Using larger time frames to examine market trends can eliminate many unnecessary information distractions and ensure efficient use of trading opportunities.
9. Focus on trading stress and risk management
If you take too much risk in each trade, that trade will haunt you like a nightmare, filling your thoughts. Maintaining long-term trading and profitability requires effective risk management. If anxiety has affected your sleep, it means the risk you are taking in trading has exceeded your comfort zone.
10. Preparation before live trading
Before engaging in live trading, there are two key points to remember to ensure your trading does not devolve into gambling. First, you must have a clear trading strategy. Second, money management is crucial. Without sufficient funds, you will not be able to trade long-term, let alone make a profit.
11. The importance of self-control
The success of trading depends not only on rational strategies, trading plans, and money management but also on psychological self-control, which is equally crucial. In trading, the biggest challenge comes not from financial issues but from personal emotional fluctuations.
12. The accumulation of favorable factors
The success of a trade depends on obtaining as many favorable factors as possible, as this will increase the likelihood of profit. In trading charts, if the trend lines, important chart levels, and trading signals are consistent, the trade is more likely to be profitable.
13. Do not increase positions after losses
In trading, overly focusing on win rates while neglecting risk management is a dangerous mindset. Successful traders should have risk awareness, avoid unnecessary risks, and not pursue doubling their accounts in the short term.
14. Reasonable stop loss, strict execution
Ensuring reasonable stop losses and strictly implementing them is a crucial principle in trading. Traders who do not set stop losses may ultimately face the risk of blowing their accounts. After placing each trade, stop loss and profit targets should be set, and emotional trading should be avoided.
15. Wait patiently for the best trading opportunity
The market is never short of opportunities; what is truly lacking is a mindset that is always prepared. In the world of trading, patiently waiting and ensuring that your mindset is in the best state is key to success.
In summary, trading is not everything in life; it is just a way of investing and should not affect normal life. Successful traders need to adhere to simple and effective trading strategies, maintain high discipline, wait for the best opportunities, set reasonable stop losses, avoid overtrading and unnecessary risks, and remember that there is life and career outside of trading. These suggestions can help more people succeed in the financial markets.
I am recently preparing to ambush a project that is expected to surge in the short term. Doubling is not an issue. Friends who are interested in spot trading but lack direction can like and leave a message for free sharing.
