The secret to stable trading profits can be summarized in one sentence: use light positions, diversify across multiple varieties, enter to test and learn, cut losses, let profits run, and execute consistently.

If you start with a small amount of capital, then there is no need to diversify across multiple varieties; however, as your capital grows, it is essential to diversify.

This sentence encompasses entry, stop-loss, exit, capital management, and execution, all aspects of trading.

The key to entry lies in testing and learning, as market trends are unpredictable. Therefore, there is no need to pursue high win rates; a beginner might think I’m talking nonsense when hearing this.

The key to stop-loss is risk management; actively admitting mistakes is crucial for survival. It’s that simple.

The key to exit is whether the profit aligns with the market trend. It is necessary to increase profits according to the market space; otherwise, how can profits cover losses?

The key to capital management lies in long-term invincibility in the market, keeping risks within acceptable limits. Why are there many stars but few long-term players? Because profit expansion leads to a loss of capital management.