There is a famous saying in the market: those who know how to buy are apprentices, and those who know how to sell are masters.

Buying here refers to entering the market, and selling refers to exiting the market. This sentence actually means that exiting the market is more important than entering the market. For traders who already have enough experience, I think this is completely correct.

But for novices, it is the opposite. For novices, it is just the opposite.

  • Closely related to entry is stop loss, and closely related to exit is take profit.

  • Stop loss means losing money, stop profit means making money.

  • For beginners, stop loss is of course more important. If you can reduce the stop loss, you can gradually become a trading expert.

  • And taking profit is nothing more than a matter of earning more or less. Is this very important for a novice?

  • For many novice traders, their idea is to always exit at the most ideal place, long orders at the highest point, short orders at the lowest point. #BTC

The truth is, it's hard and I can't do it at all.

A trader should be more patient and wait for the best trading opportunity, that is, the opportunity to enter the market. It is an opportunity that may make you money, but it may also be an opportunity for you to stop loss.

Therefore, you should be very cautious when screening such opportunities.

Memoirs of a Stock Operator mentioned: Livermore could wait six weeks before entering the market to make a trade. The reason was simple: he could not afford to lose money. He had to wait for a very sure opportunity to make a comeback. He finally closed his position when the market continued to break through new highs.

Because he has already earned the capital for his comeback, so for a novice or someone who is determined to make a last-ditch effort, entering the market is much more serious and important than exiting the market.

Take more profits and less stop losses, this is the right way for beginners to trade. There is no need to pursue the perfect exit method, but try to wait for the perfect entry time. Livermore said that a good trade should make money as soon as it enters the market, which also shows that "entry" seems to be more important. #ETH #TRB