After entering a trade, the key is how to properly respond to and handle market conditions. Ensuring that your trades proceed smoothly hinges on the following three aspects:
Firstly, minimize trial and error costs. In simple terms, this means setting clear stop-loss points. By establishing stop-loss points, even when faced with adverse market changes, you can keep your losses within an acceptable range. This is an important means of reducing risk and protecting your funds.
Secondly, pay attention to the overall market trend. When the overall market environment changes unfavorably, even if your trading strategy itself is sound, you should promptly take exit measures. This is because changes in the market environment can affect all trades, making it difficult to remain unaffected. At this time, preserving your principal is crucial. Even if the market warms up later, you can re-enter the trade, but the safety of your principal must always come first.
Finally, protect your profits. In the absence of changes in the overall market trend, hold your positions according to your trading logic and rules until there is a reversal signal to exit. This approach ensures that you obtain the most reasonable profits rather than blindly pursuing maximum profits. Remember, the reasonableness and stability of profits are more important than a single high profit. Such a strategy allows your profits to grow continuously while also enabling a safe exit from the market at the right time.
In summary, after entering a trade, you need to focus on the above three aspects: minimizing trial and error costs, paying attention to the overall market trend to protect your principal, and protecting your profits. As long as you have a set of excellent trading rules and adhere to these principles, you can achieve stable profits with a high probability.