We should all learn some valuable lessons from this market decline. Here are three key principles that should be followed in a bull market to ensure a sound investment strategy:
1️⃣ Set clear stop-loss points: Even the most successful investors cannot always make profits, so setting clear stop-loss points is critical. Not setting stop-losses may amplify risks and lead to unbearable losses. By setting stop-loss points, losses can be effectively limited and investment principal can be protected.
2️⃣ Keep an eye on market dynamics: Trading is an ongoing process, so it is important to pay attention to market changes in a timely manner. Keeping abreast of market trends helps investors make decisions quickly and ensure the safety of funds.
3️⃣ Manage positions properly: Avoid concentrating all funds on a single investment. Diversification can reduce the risks caused by fluctuations in a single market or asset. Proper position management allows investors to maintain capital flexibility in the face of challenges, so that they can make full use of real investment opportunities when they arise.
These principles can help investors remain rational and stable in a volatile market environment and better cope with various investment challenges and opportunities.
