How many of you focus on winning or losing on trades? Trading is always about preserving capital! In this post, I will tell you why you are focusing on the wrong things…

Knowing When to Hold a Trade (Bull Market): As the song goes, in a bull market, it is important to hold on to a trade when the trend is in your favor. If the market shows signs of upward momentum and positive indicators, then it may be wise to hold on to the position in the hope of further gains.

Knowing When to Walk Away (Market Turn): It is crucial to know when to walk away or close a trade when the market starts to show signs of moving against your position. This may be indicated by technical analysis signals, fundamental shifts, or changes in market sentiment. Exiting a trade at this point can help reduce potential losses.

Knowing When to Walk Away (Untradeable Market): Sometimes, market conditions become unfavorable or untradeable. This may be due to extreme volatility, low liquidity, or uncertainty caused by external factors. In such cases, it is best to walk away, take a break, and reevaluate your strategy. Contact with reality, represented by “touching the grass,” can help gain insight and avoid making impulsive decisions.

Knowing When to Run Away (Market Selloff): If the market is falling rapidly or experiencing a major downturn, it is crucial to run away or exit a trade quickly to minimize losses. Waiting too long in a plunging market can result in severe financial losses. However, running away does not mean panicking; it means making a considered decision to preserve capital and look for other opportunities.

Never Count Profits Before Cashing In (Bull Market Ends): As the song advises, in trading, it is critical not to get hung up on potential profits before cashing in. Especially during bull markets, when optimism is high, it is important to stay disciplined and not get carried away by unrealized gains. Wait until the bull market is over or your trading strategy calls for securing profits and counting them.

In essence, applying the principles in “The Gambler” to trading emphasizes the importance of discipline, risk management, and knowing when to act based on market conditions and your trading strategy.

If the market is really bad – just get out of it...Never go all in - never back off completely

You come away empty handed...liquidated, you're out!

#新币挖矿 #大盘走势