In trading, it is crucial to follow market trends. Without the courage to try and make mistakes, it is difficult to make a profit in the market.
Once the correct market direction is determined, the next focus is on controlling the drawdown of funds. In a volatile market, we should take profits at the right time to avoid unnecessary stop losses; whereas in a one-sided market, we should avoid taking profits too early while having the courage to cut losses in a timely manner.
In summary, after determining the correct direction, the key is to: protect the profits already obtained and avoid excessive losses due to market fluctuations; in a volatile market, lock in profits at the right time to avoid missing good opportunities due to price reversals; in a one-sided market, if the market direction is contrary to our expectations, we must have the courage to cut losses in a timely manner to prevent greater losses.
Through these strategies, we can better manage risks and improve the success rate of trading.