Understand the following content and avoid many detours!
1. Choose small-cap stocks to go long and large-cap stocks to go short. Avoid adding positions at the wrong time. Wait until the stock becomes active and breaks through the resistance level before adding positions, and wait until the stock falls below the support area before clearing positions.
2. Accumulate surplus. If you have a series of successful transactions, please transfer part of the funds to the surplus account for use when needed.
3. Set up stop-loss points to protect investments and prevent losses. Buy active stocks and avoid those that are slow and sluggish.
4. Don't go against the trend. If you can't determine the trend based on the trend chart, don't buy or sell.
5. The amount of funds used: divide your principal into ten equal parts, and do not trade more than one-tenth of the principal at a time.
6. Avoid canceling the stop-loss points you have set when trading. The fun of buying and selling should be the same. Keep the trading direction consistent with the trend and make profits from it.
7. Don't try to dilute losses. This is one of the most common mistakes made by traders.
8. Stop-loss order: Set a stop-loss order 3 to 5 points away from the transaction price to protect your investment.
9. Don't buy because the stock price is low, and don't sell because the stock price is high.
10. Risk should be evenly distributed. If conditions permit, trade multiple stocks to avoid investing all funds in one stock.
11. Never exit the market because of losing patience, and don't enter the market because of waiting for a long time.
12. Do not hedge transactions. If you are long a stock and it starts to fall, don't sell another stock to cover the position. You should clear the position and wait for new opportunities.
13. Avoid frequent transactions to protect your funds and profits.
14. Don't interrupt transactions without reason. Set a stop-loss point to protect your profits.
15. Leave the market when confused, and don't enter the market when confused. Don't buy stocks for a dividend.
16. When buying and selling, don't use limit orders or fixed buying and selling prices, use market orders.
17. Don't change long and short positions in the market without a clear reason or plan.
18. Do not increase trading volume after long-term success or profit to maintain a stable investment strategy.
19. Never turn profitable transactions into losses without reasonable profits. Once profits are obtained, increase the stop loss point in time.
20. Do not over-trade to keep the use of funds stable.
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