10 trading principles
1. Understand market trends: Before trading, research the main trend of the market and do not trade against this trend.
2. Be patient for opportunities: Don't rush into trades. Patiently wait for clear opportunities to optimize the chances of success.
3. Risk management: Only use a small portion of capital for each trade to protect the account and avoid high risk.
4. Set stop-loss levels: Always know in advance the acceptable level of loss before executing a trade and be ready to cut losses if necessary.
5. Don't let emotions dominate: Maintain a strong mindset, do not let greed or fear influence decisions.
6. Don't fear missing opportunities: If an opportunity passes, don't rush into another trade. The market always has many other opportunities.
7. Don't overtrade: Avoid trading too much to reduce risk and maintain focus.
8. Focus on your strategy: Trust your strategy and do not be influenced by outside opinions.
9. Learn from mistakes: Draw lessons from unsuccessful trades to improve strategy.
10. Always update your knowledge: The market is always changing, so continuously update your knowledge and trading skills.
5 money management principles
1. Don't take excessive risks: Only use a small percentage of total capital for each trade to avoid high risk.
2. Preserve capital: Always focus on protecting capital, especially during unfavorable periods.
3. Set clear stop-loss levels: This helps protect the account from large losses and maintain discipline.
4. Don't try to recover losses: Avoid doubling down on losing trades to recover, this only increases risk.
5. Set profit goals: Determine profit targets for each trade in advance and stick to the plan, avoid greed.
5 emotional management principles
1. Keep a calm mindset: Always trade with a stable mindset, do not let short-term fluctuations affect you.
2. Don't regret losing trades: View each unsuccessful trade as a lesson and learn from it.
3. Be patient and confident: Patiently wait for clear opportunities and trust your strategy.
4. Don't let emotions control trading: Avoid being influenced by greed, fear, or excitement in trading decisions.
5. Know when to stop: If you feel emotionally unstable, take a break and stop trading to avoid making poor decisions.
These principles help maintain consistency and discipline in trading, reducing risks and optimizing profits.