What does it mean to get rich? Getting rich is relative.
Turning 100,000 into 1 million, some people feel they've gotten rich. The people in Shanghai scoffed; 1 million can only buy a decent toilet in Shanghai.
Turning 1 million into 10 million, you can buy three bedrooms and two halls in Shanghai, that's considered a 'normal citizen'.
Therefore, getting rich is relative; what’s relative is your capital. If the capital is small, no matter how big the profit, the absolute value is still insufficient. Only scale can generate benefits.
To survive in trading long-term, consider investment risks and any possible occurrences. The core of leveraged trading is that when in a profit state, you should gradually increase your position size. In case of losses, gradually reduce your position to minimize losses. This is the essence of trading!
Core One: The truth of trading is not about getting rich overnight but about earning steadily and living long.
Core Two: A common pitfall for investors is frequent trading. They never look for good trading opportunities; they just jump in whenever there's volatility. This is undoubtedly wrong and will only lead to missing good entry points and frequent losses.
Core Three: 'There's a saying, I can pull you back from the cliff, but I can't stop you from jumping every time.' Impulsiveness is a terrible source; you must act according to trading signals. Not being impulsive is the first element of risk control. Learn to control risks.
Core Four: Don’t let profits cloud your judgment; the key is to maintain profitability. Human desire is to want more, which can lead to forgetting risks and causing self-destruction. Therefore, you must always keep a clear mind. Be cautious when losing money, and even more cautious when making money.
Core Five: Everyone has a gambling mentality and likes to heavily invest based on their careless judgments. To this day, there is no heavy investment strategy that doesn’t fail. Therefore, control each loss to within 2% of your capital, and always set stop-loss and take-profit orders.
Core Six: When facing major setbacks and losses, there's always a hope to immediately recover. However, the more you try to make up for it all at once, the more you risk failure. After facing setbacks, you should immediately reduce your trading volume or stop trading. Right now, it's not about how much you can earn back but about regaining your confidence.
Core Seven: It's okay to make mistakes; the priority is to exit quickly. 'While the green mountains remain, there's no need to worry about firewood.' Preserve your strength, understand the reasons clearly, and make a comeback!
Core Eight: Both newcomers and veterans know trading principles, but top experts consistently execute these principles even in extreme trends. The main reason why most traders keep losing money is due to a lack of patience and ignoring trading principles, rushing to trade before the trend is clear and manageable.
Core Nine: Diversify your trades to face market changes. Those who make mistakes are the ones who lack a strategy in trading. When they are wrong, they complain about how hard it is to trade, about platforms having issues, and always ask why. Isn't life just full of uncertainties? Never lose due to lack of strategy.
Core Ten: Learn self-discipline and capital management before trading. If your position turns unfavorable, exit immediately. If it's favorable, hold on. When market trends are poor, reduce your trading volume or stop trading. At this moment, it’s not about how much to earn but how to avoid increasing your losses. Never trade recklessly in situations you cannot control.
