What is the essence of trading?
The essence of trading:
Cut losses when wrong, hold on when right, small losses and big profits, high risk-reward ratio. Stable profits = small gains + small losses + occasional big gains + absolutely no big losses.
Follow the trend: Look for moving averages, divide long and short,
Only go long above, only go short below.
Entry: Act according to the trend, follow the big trend and counter the small trend.
Stop loss: Hard stop loss, must stop loss, no room for luck.
Like positions: Add to positions with floating profits, adding positions is the key to making big money.
As long as you can master these principles and consistently follow them in practice, maintaining discipline and consistency, you will find that
making money is a natural thing.
