1. Each time you enter the market to buy or sell, the loss should not exceed one tenth of the funds.
This way, even if you make a mistake every time, you still have 10 chances to play
2. Always set a stop loss to reduce the possible losses caused by buying and selling errors.
3. Never buy or sell in excess.
The trading frequency must be low, try to reduce it to 1-2 times a week. If a newbie wants to train, he can use simulated funds to train, and can use a very small amount of funds to accumulate experience, but for a normal account, he must wait for the opportunity. There are actually very few opportunities to trade.
4. Never let your positions turn from profit to loss.
Many people have experienced profitable orders turning into losses, which is particularly regrettable. How to prevent profitable orders from turning into losses? It is very simple. When the profit reaches a certain percentage, you must set a capital-protecting stop loss. For example, if you buy at 10 and it rises to 13, you can set the stop loss at 10 or 11. In this way, even if the market reverses, the principal can be protected from loss.
5. Never go against the market trend. When the market trend is not obvious, it is better to wait and see on the sidelines.
Not going against the trend means going with the trend. Everyone has a different definition of going with the trend, depending on their trading cycle and reference indicators. Some people use the 20-day moving average at the daily level, while others use the 60-day moving average in the hourly chart. It varies from person to person. Only when the direction is clear, then enter the market to trade, and mistakes will be reduced a lot.
6. When in doubt, close your position and leave the market. Be resolute when entering the market, and do not enter the market when you are hesitant.
You have to figure this out yourself. Because whether you can hold on to an order depends on your confidence and trading psychology. If you can't sleep because of holding on to an order, it's better not to trade.
7. Trade only in active markets. Do not trade when trading is quiet.
8. Never set a target price to enter or exit the market, avoid limit price entry or exit, and only follow market trends.
9. If there is no proper reason and the position is not closed, the stop-profit position can be used to protect the profit.
8. Don’t guess the top. You can try to take profits in batches and exit with profits, or use the inverted pyramid.
10. After a series of victories in the market, you can withdraw part of the profits in case of emergency.
13. Don’t enter the market because of impatience, and don’t close your position because of impatience.
Avoid emotional trading.
15. The stop loss level set when entering the market should not be cancelled randomly.
17. Be able to go long or short freely, and don’t just do one side.
This old bull often can't do it, because he is a die-hard bull, so he will suffer losses when the market pulls back. You can't have obsessions in your heart, you must respect the market. Reality is the most important.
19. Never hedge.
If you lose money on an order, stop loss! Don't lock the position, it's a taboo.
20. Try to avoid pyramiding when it is inappropriate.
I don’t have a deep understanding of it. When pyramiding, it is best to wait until the trend is clearer. It is not advisable to add positions when the market is volatile.
21. Avoid changing trading strategies without proper reasons.
What is a proper reason? I don't know! The buying and selling strategy must be formulated in advance, such as entry signals, stop losses, positions, exit signals, etc. Once formulated, it cannot be easily changed due to drastic market fluctuations.
