Trading principle: Don't make small money, don't lose big money

This principle sounds simple, but it is very difficult to do it. Let's use an example to illustrate:

You bought at 20,000, and the price quickly rose to 21,000. You are very happy and immediately stop profit, earning 5%. However, the market continued to rise to 25,000, you made 5%, but missed 50% of the profit.

So, you made up your mind to make big money this time and no longer stop profit easily. The price fell back to 20,000, you bought again, and the price rose to 21,000 again. You warned yourself to learn from the last lesson and hold on. As a result, the market returned to below 20,000, and even fell to 19,500, so you had to stop loss. It's really hard 😭

This dilemma has troubled many people throughout their lives, and they are constantly wandering between making small money and losing big money.

So, is there a way to make a profit in both large and small markets? The answer is: no. You must choose between making small money and pursuing big gains. Personally, I choose "not making small money."

I want to emphasize that it is impossible to achieve 100% of these principles, and no one can be perfect. But I can tell you the correct concept, and how much you can achieve depends on your personal cultivation. We can only try to increase the proportion of following these concepts as much as possible.