Nine Survival Rules for Short-Term Trading
1. Learn to wait; contracts are like passing the baton in a game, after a surge of emotions there must be a correction, and a reversal follows panic. Use 20% of the opportunity to earn 80% of the profit; this is an irreversible law of the market.
2. Never over-leverage; over-leveraging can lead to emotional decision-making, resulting in a vicious cycle. Losses are normal; the key is mindset and finding new opportunities. To profit, you must first maintain your qualification.
3. Be cautious when buying; do not be impulsive due to a straight-line surge. In a big market, there are plenty of opportunities. You must consider indices and emotions to make judgments.
4. Be decisive when cutting losses; if it doesn’t meet expectations, make a quick decision and never waste time on losses. Seek new opportunities instead.
5. After a big profit, cash out; a big profit often indicates market euphoria, and a correction is imminent. Cash out in time to clear the euphoria and add color to life.
6. Respect the market; do not judge the market based on subjective assumptions. If the funds have not chosen a direction, there is no need to stubbornly hold on. Engaging in the direction recognized by the market is the right path.
7. Do not take over after a peak; the market has reached a peak, and the baton game is about to end. Who will be willing to take over the next day?
8. Try not to trade in the afternoon; the short-term situation was already clear in the morning session, and when it's time to act, you should have acted. Streamline trades to avoid unnecessary entanglements.
9. Persist in reflection and summarizing; failure is not frightening, but failing to learn is. Let each failure become the foundation of success, so that you can go further.