Trading Insights
1. Simplify Trading: Moderation in trading is key; many traders often overdo it, analyzing, interpreting, thinking, and acting excessively. Learn to be appropriately 'lazy'; beneficial signals in the market are limited, and most are noise. Filter out useless information to identify 'quality signals.' At the same time, learn the mindset of hedge fund traders and avoid seemingly plausible opportunities.
2. Set an Exit Plan Before Entering: Traders must establish their own rules and take responsibility for their actions. Exiting is more important than entering; most people exit impulsively, resulting in small profits or large losses. Establishing a strict take-profit and stop-loss plan helps maintain calm and reduces emotional interference in decision-making.
3. Avoid Value-less Trades: Trades where risk and profit are disproportionate often stem from blind and frequent operations, leading to a cycle of losses. Traders who enter blindly hope for luck and ignore risks; professional traders plan in advance. Value-less trades tend to have shallow understanding and arbitrary decision-making, which is more detrimental than beneficial for growth.
4. Maintain High Discipline: Discipline is crucial for trading success; it involves following rules and principles, managing risks, achieving goals, and avoiding emotional interference. I only spend half an hour each day looking at charts and suggest that everyone strictly adhere to their plans, avoiding obsession with market fluctuations to enhance efficiency and stability.
5. Step Away from the Trading Desk When Necessary: Keeping a distance from the market is a wise strategy; overtrading can deplete funds. Use larger time frames to assess trends; daily charts are the preferred choice for technical analysis, as they eliminate distractions and efficiently capitalize on opportunities.