Four Principles of Successful Traders
Occasionally you will have a small loss, a small win, and occasionally a big win, but never a big loss.
The core of trading is to manage risk and ensure that you do not suffer major losses. Small losses and small wins are normal trading results. The key is to seize the opportunity of big wins and avoid big losses.
Basic principles of trading
No stop loss means death
Traders who do not set a stop loss are prone to suffer heavy losses when the market fluctuates violently. Stop loss is a protection mechanism that helps traders exit in time when the market is unfavorable to avoid greater losses.
Greed will kill you
Explanation: Excessive greed will lead to blind pursuit of high profits and ignore potential risks. Trading requires rationality, and do not take unnecessary risks because of greed.