A veteran trader shares trading insights:
Trends determine everything: Understanding market trends is the first step in trading. Find the right entry point, accurately calculate the risk-reward ratio, and ensure each trade is high probability.
Avoid frequent trading: Trading is not 'blindly splurging.' Set daily profit targets and strictly adhere to them. Once the target is met, decisively stop. The trading market is not designed for workers, but for investors who understand management.
Taboos of stop-loss and over-leveraging: Over-leveraging and trading without stop-loss can easily lead to significant drawdowns or even halving your account. Even mature traders can make this mistake, but it is essential to understand that this practice is a major taboo.
Don't underestimate small money; seize big money: A mindset of not protecting profits often leads to missing out on larger opportunities. Don't underestimate small profits, but also learn to control large profits to remain invulnerable in trading.
Go with the trend; don't bet against it: When the market lacks trend-following trades, avoid blindly betting on short-term small gains from pullbacks. Stick to one direction and reduce unnecessary risks.
Mindset determines success or failure: Trading is not about who makes money faster, but rather who can survive long-term in the market. Avoid fear and anxiety; don’t obsessively watch the market when holding positions, and don’t let your mindset influence your decisions to achieve truly stable trading.
Act within your means; always set stop-loss: Each trade must have a stop-loss set, and you should calculate the acceptable loss range. Through scientific capital management, do not expose yourself to excessive risk.
Stay calm when holding positions: Avoid excessive monitoring of trades and don’t let market fluctuations affect your normal life. In trading, learn to remain calm. If you cannot overcome the psychological barriers, you will never excel in trading.
Summary: In trading, mindset occupies a decisive position. Traders who survive and consistently profit do not rely on momentary luck but on calm analysis and precise decision-making.