◎ Simplify trading, you will gain more In trading, moderation is the key. Many traders often make the mistake of overdoing things. They over-analyze the market, over-interpret the market, over-think, and over-order. In general, they do a lot of unnecessary things. As a trader, it is also important to learn to be appropriately "lazy". First of all, it should be clear that the favorable signals that appear in the market over a period of time are limited, or even rare. Most of what you see and hear may just be "market interference", which is noise and is of no benefit to you. Learning to filter these signals and then filter out the "high-quality signals" that are really beneficial to you is a regular step in finding opportunities. Secondly, it is recommended that you learn the mentality of hedge fund traders to trade. They hold millions or even hundreds of millions of dollars in funds, but their trading is very principled, just like picking diamonds in the sand, only choosing the opportunities with the highest returns. For those "maybe" and "seemingly" and other specious signals, it is better to stay away from them.
◎ Have a clear exit plan before entering the market In trading, no one tells you what to do. You have to make your own rules, which means you have to be responsible for your own actions. Many people lack this self-control, which often leads to losing the direction of trading. One of the most important tasks before trading is to determine the exit plan. It took me several years to realize that exiting the market is more important than entering the market. It was observed that many people exited the market capriciously, resulting in either little profit or a large loss. Establishing a strict stop-profit and stop-loss plan is the best way. Such a plan can provide you with clear guidance, so that you can stay calm and execute the plan whether you are making a profit or a loss. This disciplined exit plan helps ensure that you keep a clear mind in trading and reduce the impact of impulse and emotion on decision-making.
◎ Avoid worthless transactions In the world of trading, worthless transactions refer to transactions in which the risk and profit are disproportionate, which usually occur when traders trade blindly and frequently. Such transactions often lead to losses greater than profits, affecting the mentality of traders and even causing them to fall into a vicious cycle of losses. Specifically, when faced with a volatile market, traders can't wait to enter the market when they see the so-called "opportunity", without considering the profit and risk of the transaction. Such blind traders usually have a fluke mentality, thinking that even if there is only a small profit, it is still a profit. They turn a blind eye to small profits and big risks, and even regard any market conditions as opportunities that cannot be missed, subjectively magnify small opportunities, and trade impulsively. This attitude not only shows contempt and disrespect for the market, but also makes it difficult to achieve good results in the market. For professional traders, they usually make trading plans and set stop losses in advance to ensure that even if they lose money, the impact will not be too great. However, the losses caused by worthless transactions are different, because such traders have a shallow understanding of the market, make more casual trading decisions, and lack careful consideration. This avoidable loss is more harmful than beneficial to the growth of traders.
◎ High Discipline High discipline plays a vital role in trading in financial markets. It refers to the traders following a set of clear rules and principles when trading to ensure that risks are effectively managed, investment goals are achieved, and the adverse consequences caused by emotions and arbitrary decisions are avoided. The level of discipline is directly related to the success of trading and is considered one of the key factors for successful trading. I insist on not being disturbed by emotions in trading decisions. I only spend half an hour looking at the charts every day and deliberately avoid being obsessed with excessive observation of market fluctuations. I advise traders to strictly adhere to the trading plan and avoid over-analyzing the market, because disciplined execution is the cornerstone of stable profitability. By following the predetermined plan, I can stay calm and avoid emotional decisions, thereby improving the efficiency and stability of trading.
◎ Most of the time, you should stay away from the trading table. On the road to trading, a wise strategy is to keep a distance from the market. Overtrading is often a shortcut to capital loss, and it is important to remember this. I strongly advocate the use of large time frames to examine market trends. This method is like a natural filter that can exclude a lot of unnecessary information interference. In this way, you can focus more on executing your trading plan, thereby ensuring efficient use of trading opportunities. In my opinion, the daily chart is the best choice for technical analysis.
