24 Rules for Winning
To succeed in the market, traders must have certain rules and follow them.
1. Amount of funds used: Divide the principal into ten equal parts, and use no more than one tenth of the principal in one transaction.
2. Stop loss order: Set a stop loss order 3 to 5 points away from your transaction price to protect your investment.
3. Do not over-trade, which will undermine your principle of using principal.
4. Do not let profits turn into losses. Once you have made a profit of 3 points or more, increase the stop loss point to prevent capital loss.
5. Do not go against the trend. If you cannot determine the trend based on the trend chart, do not buy or sell.
6. Leave the market when you are confused, especially do not enter the market when you are confused.
7. Buy stocks with active trading, and do not touch those stocks with slow trends and sluggish trading.
8. Spread the risk. If conditions permit, trade 4 or 5 stocks to avoid investing all the funds in one stock.
9. Do not use limit orders or fixed buying and selling prices, use market orders.
10. Don't terminate a trade without reason. Set a stop loss order to protect your profits.
11. Accumulate surplus. If you have a series of successful trades, transfer some of the funds to the surplus account for emergency use or when the market panics.
12. Don't buy stocks for a dividend.
13. Never try to dilute your losses. This is one of the worst mistakes traders make.
14. Don't get out of the market because you lose patience, and don't get in because you are anxious about waiting for a long time.
15. Avoid losing more than you gain.
16. Don't cancel the stop loss point you have set when trading.
17. Avoid frequent trading.
18. Be as willing to sell short as you are to buy. Keep your trading direction in line with the trend and profit from it.
19. Don't buy because the stock price is low, and don't sell because the stock price is high.
20. Avoid adding to the position at the wrong time. Wait until the stock becomes active and breaks through the resistance level before adding to the position, and wait until the stock falls below the support area before clearing the position.
21. Pick small-cap stocks to go long and large-cap stocks to go short.
22. Do not hedge your trades. If you are long a stock and it starts to fall, do not sell another stock to cover your position. You should close your position and take the loss and wait for another opportunity.
23. Never change your long or short position in the market without a good reason. When you trade, you must have some kind of regular reason or follow some clear plan;Then, don't leave the market until there are clear signs of a turnaround.
24. Don't increase trading volume after long-term success or profit. If you don't know how to screen strong coins, I suggest you follow me. Whether it's spot or contract, a little shot may be your limit. The opportunity is short, so you must seize it! Success is not based on luck, choice is greater than effort, and the circle determines destiny. In the currency circle, in addition to having a keen eye for judging the situation, you must also keep up with a good team and a good leader. Follow me and you will be halfway successful in the currency circle!
