Think clearly and open positions only when the plan is thorough; this is the basic requirement of trading.

Before opening a position, there must be clear criteria for bullish or bearish judgments, and precise entry points. Once the trade is entered, there should be a clear stop-loss and take-profit plan. Moreover, if the price rises after entering the trade, what should you do? What if it rises quickly? What if it rises slowly? What if it rises and then retraces? All possible scenarios need to have a response plan in advance.

Just think about it; if the logic for opening a position is vague and lacks detailed planning—like seeing a 1-hour MACD divergence and then opening a long position on the 5-minute chart—what is the entry signal? Where do you place the stop-loss? If you make decisions based on feelings, can such trading be successful?

And those who rely completely on intuition to open positions need not be mentioned; there is no logic, no understanding of analysis, and operations are entirely based on instinct, resulting in losses that are stubbornly held onto and gains that are quickly taken. The result is significant losses and minimal gains, continuously bleeding into the market.

If you find yourself in the third state, stop and clarify the trading details before proceeding. Relying on luck for long-term profits will only lead to being drained by the market. If you are in the second state, experiencing minor losses or slow losses but not making money, it’s time to reflect—since you have already learned and practiced, don’t remain in a half-hearted state; work hard to do things well and correctly.

Ultimately, even if your trading plan is not exceptional, as long as you have a plan, you are already much better than those who trade casually, and your chances of making a profit will significantly increase.