Currently, my trading profitability is quite stable, and I often have novices come to me for trading methods. I am very willing to share my experiences with everyone over the years. The field of trading does require hands-on practice to truly achieve growth. With the right guidance, we can avoid taking detours and wasting time and energy.
Trading skills are relatively easy to learn, as relevant materials can be found online or in trading classrooms. However, the real test lies in personal trading mindset and thinking. The 15 trading experiences I will share next have always guided me towards the right trading direction.
These experiences are what I have summarized from actual trading, playing a key role in cultivating the correct trading mindset and way of thinking. I hope that by sharing these experiences, I can help more novice traders who have just entered the trading door or those wrestling in the market achieve better trading performance and reduce unnecessary troubles.
1. Be a trader with a strong defensive awareness.
Becoming a trader with a strong defensive awareness is a key transition for novice traders on their trading journey. Many beginners may be misled by a short-sighted mindset, hoping to earn profits quickly, even trading with the mindset of "getting rich overnight". However, a more realistic and feasible mindset should be to maximize the protection of your funds. These two mindsets cannot coexist; if you only focus on quick profits, it is likely that your funds will be lost even faster.
A rule from the sports arena also applies to trading: offense is the best defense. In this context, it means trading only under favorable conditions while protecting funds and staying away from the market at other times. Beginners may get lucky in their first few trades, but luck cannot last. You should be wary of the "beginner's effect" trap.
Imagine if you held a gun; unless you are completely sure you can hit the target precisely, you wouldn't easily waste a bullet. The same principle applies to trading. Preserve your financial strength and only deliver a "fatal blow" when truly advantageous opportunities arise. In trading, protecting your funds to the maximum extent is the key to success. As long as you can effectively control risk, even when faced with strong entry signals that ultimately lead to failure, the impact on your funds will be kept within a reasonable range.
2. Frequently checking charts and constantly monitoring trades.
This can often have a negative impact on trading. In life, too much interference usually does not yield good results. If you constantly try to over-control trading, the result may backfire and bring you more troubles.
Have you ever found yourself unconsciously increasing your position size or exiting a trade early due to excessive focus on charts? In hindsight, doesn't it feel like you were too emotional at that moment? Such unplanned actions are often one of the reasons many people incur losses.
The simplest way is to set a trading plan and then forget about it. This is one of the principles I often emphasize to novices, and it is also one of the most valuable experiences I have gained: the less you interfere with your operations in trading, the better. Simply follow your trading plan and let trading proceed as planned; that is true trading wisdom.
3. The result of the previous trade should not affect the next trade.
The result of the previous trade should not affect the next trade. This is an extremely important principle, but many people often forget it. They can easily be influenced by the outcome of the previous trade. However, it is essential to understand that each trade is unique, and trading results are randomly distributed. Suppose you conducted 100 trades; the gains and losses might be similar. However, their distribution cannot be so uniform. You might have five or ten consecutive losses, and if these losses affect your mindset, then the potential profit opportunities that may arise next could be hindered by your emotional state. It is also important to note that after experiencing profitable trades, excessive confidence can have a negative impact on trading, just like the fear that follows losing trades. Overconfidence can lead to taking on too much risk, and in the long run, its negative effects can be quite scary. Therefore, maintaining calm in trading and not being swayed by short-term trading results is crucial for maintaining a stable mindset and achieving long-term success.
4. Simplify trading, and you will reap more.
In trading, moderation is key. Many common mistakes made by traders are due to overdoing things. They overanalyze the market, overinterpret the trends, overthink, and overtrade, generally doing many unnecessary things. As a trader, learning to be appropriately "lazy" is equally important.
First of all, it needs to be clear that the favorable signals that appear in the market over a period of time are limited, even rare. Most of what you see and hear may simply be "market interference", noise that is of no benefit to you. Learning to filter these signals and then select the truly beneficial "high-quality signals" is a routine step in seeking opportunities.
Secondly, I recommend that you learn the mindset of hedge fund traders when trading. They manage millions or even billions of dollars but trade with very strict principles, selecting only the opportunities with the highest returns, like picking diamonds from sand. For signals that are "possible" or "seem like", I advise you to stay away. In my 20+ years of trading experience, the best trades are always the most obvious and intuitive ones.
5. Have a clear exit plan before entering.
In trading, no one tells you what to do. You must set your own rules, which means you must be responsible for your actions. Many people lack this self-control, leading them to often lose their trading direction.
One of the most important tasks before trading is to determine an exit plan. It took me several years to realize that exiting is more important than entering. Observations show that many people's exits are impulsive, resulting in either very little profit or significant losses. Establishing a strict profit and loss plan is the best way. Such a plan can provide you with clear guidance, allowing you to remain calm and execute your plan, whether in profit or loss. This disciplined exit plan helps ensure that you maintain a clear mind in trading, reducing impulsive and emotional decision-making.
6. Avoid worthless trading.
In the world of trading, worthless trading refers to trades where risk and profit are disproportionate, usually occurring in a state of blind and frequent trading by the trader. Such trades often lead to losses greater than profits, affecting the trader's mentality and even trapping them in a vicious cycle of losses. Specifically, traders facing a volatile market see so-called "opportunities" and rush in without considering the profits and risks of the trade. These blind entrants often hold a lucky mindset, believing that even a small profit is still a gain. They ignore the significant risks while focusing on small profits, even viewing any market movement as an opportunity not to be missed, subjectively magnifying small chances and impulsively trading. This attitude not only shows contempt and disrespect for the market but also makes it difficult to achieve good results.
For professional traders, they usually formulate a trading plan in advance, set stop losses, etc., to ensure that even if they incur losses, the impact is not too great. However, the losses caused by worthless trades are different, as these traders have a shallow understanding of the market, make more impulsive trading decisions, and lack careful consideration. Such avoidable losses are more detrimental than beneficial for the trader's growth.
High discipline.
High discipline plays a crucial role in trading in financial markets. It refers to the trader following a series of clear rules and principles when trading to ensure effective risk management, achieve investment goals, and avoid adverse consequences caused by emotions and arbitrary decisions. The level of discipline directly relates to the success or failure of trading and is considered one of the key factors for successful trading. I emphasize the importance of not being influenced by emotions in trading decisions. I only spend half an hour each day checking charts, deliberately avoiding getting caught up in excessive market fluctuations. I suggest traders strictly adhere to their trading plans and avoid overanalyzing the market, as disciplined execution is the cornerstone of stable profitability. By following a predetermined plan, I can remain calm, avoid emotional decision-making, and thereby improve trading efficiency and stability.
8. Most of the time, you should stay away from the trading desk.
On the path of trading, a wise strategy is to maintain distance from the market. Overtrading is often a shortcut to losing funds, and remembering this is crucial.
I strongly advocate using larger time frames to examine market trends. This method acts like a natural filter, capable of excluding much unnecessary information interference. Through this approach, you can execute your trading plan more focusedly, ensuring the efficient use of trading opportunities. In my view, the daily chart is the best choice for technical analysis.
9. Do you sleep soundly at night?
If you want to understand your trading stress levels, the most intuitive method is to conduct a sleep test.
If you take too much risk in each trade, then that trade will haunt your thoughts like a nightmare. When you lie in bed, are you often troubled by worries about trading? Do you wake up in the middle of the night and can't help but check the market on your computer or phone?
If you find yourself caught in these emotions, then your trading may have serious problems. Maintaining long-term trading and profitability requires effective risk management. If anxiety has affected your sleep, it means your trading risks have exceeded manageable limits. It is crucial to promptly adjust your positions and the investment of each trade. Everyone should maintain a cautious attitude towards this.
10. Before engaging in live trading, you must do these two things.
Before engaging in live trading, there are two key points to remember to ensure your trading does not become gambling.
First, you must have a clear trading strategy. In live trading, lacking a trading strategy can easily make you lose your direction, leading to losses. Before fully mastering your strategy, it's best not to rush into trading. Remember, do not attempt to use multiple different trading methods simultaneously, as this will only complicate things.
Secondly, capital management is crucial. Without sufficient funds, you cannot engage in trading long-term, let alone achieve profitability. Therefore, understanding the importance of capital in trading is essential; do not recklessly waste your funds, as they are your lifeline in trading. Through effective capital management, you can better protect your investments and ensure stable operations in the market.
11. How is your self-control? This is very important.
The success or failure of trading depends not only on rational strategies, trading plans, and risk management but also on psychological self-control. The trader's mindset can be said to be the dominant factor in trading rhythm, and successful traders must possess strong self-control. In trading, the greatest challenge is not financial issues but personal emotional fluctuations. A negative mindset can weaken the ability to respond to good trading opportunities, becoming the biggest trap in trading.
Allowing self-emotional fluctuations can lead to the loss of rationality, gradually eroding the clarity of trading decisions. Confidence is key to successful trading, but excessive confidence can become a breeding ground for negative emotions. In trading, a principled person can better control themselves and remain calm. Trading does not require excessive individual expression but rather demands solid execution of plans and maintaining rational decision-making. By establishing a solid psychological foundation, traders can better cope with market fluctuations, ensuring that the trading process remains steady and successful.
12. The more favorable factors, the better.
The success of each trade depends on obtaining as many favorable factors as possible, as this will increase the likelihood of profit. In trading charts, if the trend line, important chart levels, and trading signals can remain consistent, then this trade is more likely to be profitable. Although many traders seek to avoid human errors through automated trading systems, I personally do not prefer to rely too much on automated trading systems.
I believe that as long as you can find the intersection of trends, water level lines, and signals, you can effectively execute trades without worrying about the quality of the trade. In trading decisions, unity and consistency are key, which can be achieved by effectively integrating various supporting factors.
13. Do not add to losing positions.
In trading, placing too much emphasis on win rate while neglecting risk management is a dangerous mindset. I firmly believe that one should not continue to add to positions when incurring losses, as this only turns trading into gambling. I think a successful trader should have risk awareness, avoid taking risks, and not pursue doubling their account in the short term.
Some traders view profits as a secondary goal and focus more on proving the correctness of their views. However, overly pursuing a high win rate while neglecting risk management is an extremely dangerous attitude. When trades go wrong and contradict market trends, some traders not only do not set stop losses and close positions but instead keep adding to their positions, hoping for a market reversal. This behavior makes trading irrational and more like gambling. Successful traders should focus more on staying calm and reasonably controlling risk, rather than being blinded by short-term high win rates.
14. Reasonable stop losses, strict execution.
Ensuring reasonable stop losses and strictly executing them is a crucial principle in trading. I have always believed that traders who do not set stop losses may ultimately face the risk of being liquidated. For each order, set a reasonable stop loss distance and make wise decisions based on personal circumstances. Additionally, I want to remind traders not to widen the stop loss distance when incurring losses, nor to close positions too early when in profit.
For every trade, you should set a stop loss and profit target after placing the order, and keep away from emotional trading. Once set, it is best not to repeatedly check the orders or charts, as this behavior may interfere with emotions. When seeing losses, it may tempt traders to widen the stop loss distance, leading to greater losses. Conversely, when the order is profitable, closing too early may cause traders to miss out on more profits. In short, constantly staring at the board can have a significant impact on emotions and mindset. The best practice is to set it and then avoid excessive intervention.
15. Wait patiently for the best trading opportunity.
If you find this suffering unbearable, waiting for a clear trend to emerge before taking action is also a good choice. The market is never short of opportunities; what is truly lacking is a preparedness attitude. In the world of trading, patiently waiting and ensuring your mindset is in the best state is key to success. Don't rush to act; instead, wait for the right moment to mature, as a clear trend will provide you with clearer direction.
In trading, the market often generates false signals or weak signals. However, the importance of waiting for the best trading opportunities is self-evident, just like a hunter waiting for the best prey. For weak signals, we should not take excessive risks but rather patiently wait for solid opportunities. Maintaining patience is crucial, as the market constantly fluctuates, but not every moment is the best trading opportunity.
Summary
Finally, I need to emphasize that trading is not everything in life; it is just a form of investment and should not affect normal life. Unless you are a professional trader, do not invest all your time in trading; you should have your own work and career.
In summary, successful traders need to adhere to simple and effective trading strategies, maintain a high level of discipline, wait for the best opportunities, set reasonable stop losses, avoid overtrading and taking risks, and also remember that there is life and career outside of trading. These suggestions can help more people achieve success in financial markets.
The above is the trading experience that V God shared with everyone today. Many times, you miss many money-making opportunities because of your doubts. If you don't dare to try boldly, to engage, to understand, how can you know the pros and cons? You can only know what to do next after taking the first step. A cup of warm tea, a piece of advice; I am both a teacher and a chatty friend.
Meeting is fate, and knowing each other is destiny. V God firmly believes that fate will eventually lead to connections, while missed encounters are destiny. The journey of investment is long; temporary gains and losses are just the tip of the iceberg. Remember that even the wisest person will have some failures, and the thinker will have some gains. Regardless of emotions, time will not stop for you. Pick up your worries, stand up again, and move forward.
I am V God, having experienced multiple bull and bear markets, and possess rich market experience across various financial fields. Here, I penetrate the fog of information to discover the real market. Seize more wealth opportunities and discover truly valuable chances—don't miss out and regret it!
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In the cryptocurrency market, mastering the seven major trading principles is essential for understanding the ins and outs of investment, enabling one to be steadfast in the face of winds and traps. V God has traversed the market for many years, deeply understanding the opportunities and traps within it. If your investments are not going well and you're feeling resentful about losses, you can contact V God for corrections to your past; if you're currently profitable, I'll teach you how to preserve your profits; if you are still lost in the market, I wish to guide you forward. The real tragedy in trading is not how much you suffer, but how many opportunities you miss! Seize the moment and move forward together. I am V God, a person destined to leave a name in the cryptocurrency world.
V God has traversed the market for many years, deeply understanding the opportunities and traps within it. If your investments are not going well and you're feeling resentful about losses, you can contact V God in the comments section.
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