Six rules for turning losses into profits that the trading masters keep under wraps, must be saved for easy reference #btc
1. Making money relies on a strong market, not on exceptional skills; sometimes a transition between bull and bear markets takes many years and incurs high time costs.
2. Position management is the soul; only through position control can risk management be truly implemented.
3. Diversifying positions is very important.
4. In the face of the market, there are no opinions; having no opinion is the best opinion. You can't expect to predict correctly every day, nor can you expect to be wrong all the time. Soros said that being right or wrong in predictions doesn't matter; what matters is minimizing potential losses. Buffett's teacher, Graham, said: 'In my over 60 years of experience on Wall Street, if I could share anything, it's that no one can accurately predict the changes in K-lines.'
5. Can you maintain a delayed reaction, staying half a beat behind the market?
6. Correctly perceive technology; what does it mean to correctly perceive technology? It means knowing when not to use technology, when to put away the weapons and become enlightened, and when no action is the best action. This is very important. As for position management, it is a discipline; managing positions is the expertise of the masters. For example, when the market is not good, I keep 90% of my positions in cash and observe, leaving only 10% of my light cavalry to harass the enemy, using just one layer of position. Trading is a philosophy and an art, not a science. When you focus tightly on risk, profits will come uninvited.
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