Here are some practical tips when it comes to trading:
Reflect on the reasons for losses in a timely manner:
If you have consecutive losses of more than 10%, be sure to find out the reasons for the losses and make adjustments in a timely manner. This includes analyzing trading strategies, market conditions, and personal emotional reactions.
Avoid trading under uncertainty:
If you are unsure about the timing of short-term trading, it is best to avoid trading. In such cases, trading is often prone to losses.
Avoid chasing up:
Assets that have risen by more than 50% are often traps. Chasing up can easily lead investors to buy at high prices and eventually get trapped.
Beware of high volume:
After a continuous surge, if an asset has a high volume at a high level, it is usually a signal to lure more. Investors should control their emotions and avoid blindly buying at this time.
Take advantage of weakness and pullback opportunities:
You can buy low when the market is weak, and consider buying when the market is pulled back in a strong market.
Be sure to understand the situation before adding positions:
Unless you can clearly understand the market situation and are 90% sure, don't blindly add positions. Building positions in batches at low levels is usually a safer strategy.
