Trading is like a long-lasting psychological game, testing patience and wisdom. Every move feels like a contest with the market. The market makes a move, I respond; if my response is inadequate, I retreat temporarily and wait for the next opportunity. In this game, I have accumulated the following experiences:
First, you must realize that the funds in the market far exceed yours, and it is unwise to confront them head-on. You should look for trending markets and seize the chance to make a big profit. If the situation is unfavorable, cut losses and exit in time; if you have the upper hand, pursue the victory and strive to maximize profits.
Secondly, for every trade, I set a fixed loss limit, which is my stop-loss line. As long as the losses are within control, my mindset can remain calm.
Major market movements often occur during times of high volatility; only then is there a chance to capture significant profits. As for sideways markets? I choose to avoid them because they wear down patience and make it difficult to achieve substantial returns.
Finally, I usually do not take the initiative to strike first but wait for the market to reveal its cards. The initial movements of the market often expose its true intentions; at this point, operating in accordance with the trend can often yield twice the result with half the effort.