Trading Insights

1. Simplify Trading: Moderation in trading is key. Many traders often overdo it, overanalyzing, interpreting, thinking, and acting. Learn to be appropriately 'lazy'; there are limited favorable signals in the market, and most are noise. Filter out useless information and sift for 'high-quality signals.' At the same time, learn the mindset of hedge fund traders, and stay away from seemingly good opportunities.

2. Set an Exit Plan Before Entering: Traders must set their own rules and take responsibility for their actions. Exiting is more important than entering. Most people exit impulsively, resulting in small profits or large losses. Establishing a strict profit-taking and stop-loss plan can help maintain calm and reduce emotional interference in decision-making.

3. Avoid Worthless Trades: Trades with disproportionate risk to profit often stem from blind and frequent actions, leading to a cycle of losses. Traders who enter blindly are lucky and ignore risks, while professional traders plan ahead. Worthless trades are detrimental to growth due to shallow understanding and arbitrary decision-making.

4. Maintain High Discipline: Discipline is crucial to trading success, referring to adherence to rules and principles, managing risk, and achieving goals while avoiding emotional interference. I only spend half an hour a day looking at charts and recommend that everyone stick strictly to their plan, avoiding addiction to market fluctuations to enhance efficiency and stability.

5. Step Away from the Trading Desk at the Right Time: Maintaining distance from the market is a wise strategy; overtrading can erode capital. Use larger time frames to assess trends; daily charts are the preferred choice for technical analysis, as they can eliminate distractions and effectively utilize opportunities.