Fifteen Principles of Trading
1. The first priority is to protect capital and strictly limit losses. When risks exceed expectations, take prompt action to exit the market.
2. Pursue stability rather than greed. Small but stable returns are more lasting.
3. Focus on trading products and avoid diversification. At the same time, be cautious, do not easily fill positions, and follow market trends.
4. Avoid excessive positions and reduce frequent transactions to reduce risks and improve efficiency.
5. Stay calm when buying, make decisive decisions when selling, and never delay stop losses.
6. Reiterate the importance of stop losses, which is the iron rule in trading.
7. Whether it is short-term or long-term, the ultimate profit and safe withdrawal is the way to stability.
8. The eternal truth of the market is that things will turn around when they reach their extremes. Understanding this helps to grasp the rhythm of the market.
9. Missing certain trading opportunities is normal. The important thing is to seize those opportunities that you truly understand and grasp.
10. Patiently waiting for opportunities given by the market is more important than blindly looking for opportunities.
11. Once the preset trading goals are reached, stop trading in time to avoid over-trading.
12. Stop loss is a measure for traders to protect themselves, while profit is a reward given by the market.
13. Real gains often come from patient waiting and accurate decision-making, rather than blind pursuit.
14. In the face of strong desires, it is particularly important to keep a calm mind.
15. Only the money that is actually withdrawn is the real gain, otherwise it is just a number on the books.
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