Experts trade in order to make money, but novices make money by accident while trading. These are two completely different systems and completely different realms.

Amateur traders regard making money in the futures market as a sign of their strong abilities, while experts believe that making money in the futures market is an opportunity given by the market.

The shorter the cycle, the higher the transaction cost, the smaller the profit and loss ratio, and the worse the final transaction result.

But isn’t it true that the longer the cycle, the better?

Actually, it is not. For leveraged trading, the longer the cycle and the greater the volatility, the greater the probability of failure. We all know that leveraged trading will definitely fail quickly every time it is fully invested, but will it make money every time it is traded?

No! Kelly's formula tells us that the best order ratio is 25% - this is a money management formula that maximizes profits while keeping risk under control.

The same is true for the trading cycle. Although the 5-minute cycle is not advisable, the monthly and weekly cycles are also not advisable. There must be a most suitable cycle like the Kelly formula. The daily cycle is the most suitable for leveraged trading. The weekly and monthly trends need the support of fundamentals. Cycles shorter than the daily cycle will increase transaction costs and try too many useless opportunities. Most traders who lose money are because the trading cycle is too short, and they frequently trade and stop losses.

There are not many signals with large profit-loss ratios at the daily level, and there are actually few transactions that are truly smooth and profitable. Waiting for daily trading signals requires more patience. What we need to remember is that we are here to make money, not to give money away. If we are not sure of making money, then not doing it is not making money.

Many people may always worry about what if they miss the market if they don’t do it?

In fact, the money you might have earned by missing the market has long been covered by the money you lost by stopping losses due to not real market conditions. It doesn’t matter if you miss the market! Losing money and stopping losses are more important!

If trading is what you want to do for the rest of your life, missing a few market opportunities is not a big deal!

In trading, keeping your capital is the most important thing! The second and third most important thing is to remember the first one!

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