💡5 THINGS YOU CAN'T IGNORE IN TRADING:
📌*Must understand*
1. *Set clear goals*: Define investment objectives, risk tolerance, and investment duration to determine an appropriate capital management strategy.
2. *Allocate capital wisely*: Divide capital into smaller portions, allocating to various assets to minimize risk.
3. *Set stop loss limits*: Determine stop loss price levels to limit losses when the market moves against you.
4. *Manage risk ratio*: Ensure that the risk ratio for each trade does not exceed 2-3% of total capital.
5. *Control emotions*: Avoid making decisions based on emotions, always adhere to the established plan and strategy.
📌*Specific strategies*
- Use the "Hedging" strategy to minimize risk.
- Apply the "Position Sizing" model to determine appropriate trade size.
- Use technical indicators to identify buying/selling moments.
📌*Important principles*
- Do not invest more than 10% of total capital in one asset.
- Do not use excessive leverage.
- Always update knowledge and experience.
📌*Support tools*
- Capital management software like Money Management, Risk Manager.
- Technical analysis tools like MetaTrader, TradingView.
📌*Trading psychology*
- Disciplined mindset: Adhere to the plan and strategy.
- Patient mindset: Wait for the right opportunity.
- Flexible mindset: Adjust strategies when necessary.
💵💵Remember that effective capital management requires experience, discipline, and flexibility.