In trading, it is crucial to follow the market trend. Without the courage to try and make mistakes, it is difficult to make a profit in the market.
Once the correct market direction is determined, the next focus is on controlling the drawdown of funds. In a volatile market, we should take profits at the right time to avoid unnecessary stop losses; while in a trending market, we should avoid taking profits too early, and have the courage to stop losses in a timely manner.
In summary, after determining the correct direction, it is important to: protect the profits already gained, avoid excessive losses due to market fluctuations; in a volatile market, lock in profits at the right time to avoid missing opportunities due to price fluctuations; in a trending market, if the market direction is contrary to our expectations, we must have the courage to stop losses in a timely manner to avoid greater losses.
Through these strategies, we can better manage risk and improve the success rate of trading.
