Trading Success: Avoid Common Mistakes and Build Discipline
Retail investors often hold losing positions too long and sell profitable ones too quickly, driven by emotion instead of logic. To succeed, shift your mindset: let profits run, cut losses early.
Disciplined Strategy for Profits
• Take profits: Exit only when gains retract to 15% after rising.
• Cut losses: Exit immediately if losses exceed 5%.
With a 50% win rate over 100 trades, this method can yield 300% returns.
Follow the Trend
Trade with the market, not against it:
• Use moving averages for short-term (daily) and long-term (weekly) trends.
• Avoid catching falling prices in downward markets.
Short-Term Tools
• Analyze 15-, 30-, and 1-hour charts for timing.
• Use KDJ for entry/exit points and OBV to track big players.
Risk Control Over Quick Gains
Managing risk and cutting losses quickly is more vital for long-term success than chasing profits. Stick to trends, manage emotions, and follow a disciplined plan for consistent trading growth.