1. Each time you enter the market, losses should not exceed ten percent of your capital.
This means that when losses reach 10%, you must exit regardless of the circumstances, as generally, a 10% loss indicates that the operation was a mistake and you should decisively exit.
2. Always set a stop-loss level.
This reiterates the previous rule, only stating that the stop-loss level set does not have to be a loss of 10%, but can be appropriately set according to the need, such as 5%.
3. Never overtrade.
What is meant by never over-trading is to trade in moderation, which has two layers of meaning.
A. Do not invest too much capital when the direction is unclear.
B. Do not trade too frequently.
4. Never let your holdings turn from profit to loss.
Simply put, it means to set a take-profit level based on already realized profits, and this level should be set in relation to the minimum profit on the account, with the set level not lower than the purchase cost price. This is a good method to ensure effective profit.
5. If you have doubts, close your position.
This is a continuation of the previous rule. When you cannot determine whether the trend is up or down, it is best to exit and observe, as at this point you cannot follow the trend. If you remain in the market (holding positions) at this time, it is blind investment.
6. Only trade in an active market.
This active market can be understood as different trading varieties in different trading markets.
7. Never set a target price for entering or exiting the market, but only follow market trends.
Here it is emphasized again to follow the trend, and it warns against ever setting target prices for entering or exiting the market. It should be noted that this does not mean you shouldn't set stop-loss or take-profit levels, but rather refers to another situation: some people like to say they will buy at a certain price, while others say they won't sell until a certain price is reached, completely ignoring market trends. This is very dangerous and is the essence of this rule.
8. Unless there is a valid reason, do not close your holdings; you can set a take-profit level to secure profits.
This addresses the issue of mindset. Many traders like to rely on gut feelings, closing positions without principled guidelines, leading to arbitrary 'chaotic' trading. Therefore, this rule recommends pre-setting take-profit levels.
Many novice investors make trades based on momentary preferences, relying heavily on luck, but luck cannot accompany you forever. The two most important points in investing are: first, to understand market analysis; second, to control risk. As an investor, you should have a good mindset and correct investment concepts. Never envy the results others achieve; rather, recognize that you didn't work for your own results.
This is the trading experience that the V God shares with everyone today. Often, your doubts can lead to missed opportunities for profit. If you do not dare to boldly try, engage, and understand, how will you know the pros and cons? You must take the first step to know how to proceed. A warm cup of tea and a piece of advice - I am both a teacher and a friendly conversationalist.
Meeting is fate, knowing each other is destiny. The V God firmly believes that fate will lead to encounters across thousands of miles, while a lack of connection is destiny's decree. The journey of investment is long, and temporary gains and losses are just the tip of the iceberg. One must realize that even the wisest will have their oversights, and even the most thoughtful will have their insights. No matter how emotions sway, time will not pause for you. Pick up the burdens of your heart, stand up again, and set forth.
The V God has been navigating the market for many years, deeply understanding its opportunities and traps. If your investments aren't going well and you're feeling regret over losses, you can contact the V God in the comment section and leave '999 impermanence'.
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