1. Probabilistic thinking: All analysis is probabilistic. If you operate in the direction of high probability, you will make money with high probability. Accept the occurrence of low-probability events and admit losses.
In the long run, if the take profit covers the stop loss, you will make money.
2. The market is unpredictable. Ask less about the rise and fall and more about what to do after the rise and fall. What to do if the market rises, and what to do if the market falls.
3. Grasp the important characteristics of the market, and take action immediately when the characteristics appear, and do not take action if they do not appear. (For example: EMA moving average push, double bottom, triple bottom, strong outer line and other high-quality entry signals)
4. Don’t have expectations about prices, and don’t think that prices will never go back to where they were before. Rising and falling are the basic laws of the market. Any price can go up or down. Any price may go down, and the probability of going down is not low.
5. All subjective ideas should be put into action after the market has verified them. Many times we will make subjective judgments about the upcoming market trends, so such subjective ideas should be put into action after the market has initially verified them.
6. Seeing is believing. The trend you see is the conclusion of the market. Do not over-interpret the market. Do not impose reasons for the rise or fall based on the results.
7. The alternation of ups and downs is an inevitable law of the market. The change from bull to bear is an inevitable event, just like the change of seasons.
8. Don’t compete with others for yield, just compare with your own account. As long as you make steady profits, you can outperform most people.
9. Missing out on opportunities does not mean losing money. No one can catch all the market trends. If the market rises but does not give a signal in our system, then just proceed to the next stage. (The same goes for selling. If the market falls and does not give a sell signal, resulting in a break-even or even loss, accept the reality and make good use of the next transaction.)
10. Even if a transaction has a 70% winning rate, you must not forget the 30% risk of loss. Pay attention to position control to avoid bankruptcy risk. Once the account is zeroed, it means leaving the gambling table permanently and subsequent games will not be possible.
11. Those who speak do not know, and those who know do not speak. (All opinions should be clearly understood)
12. It is always worse to be too early than too late. Most reversals and breakthroughs will fail. Entering the market too early (for fear of missing out) will often cause you to lose your principal, while entering the market later will be a better opportunity, even if you lose some space.
13. All patterns may fail, even after multiple verifications. However, a failed pattern may fail again, and continuing in the original breakthrough direction may result in a higher winning rate.
14. A good transaction price does not mean a good transaction at all. The best price is often the most painful to hold a position, and breaking through a key point and then entering the market may give up a large part of the profit space, but entering the market will make a profit immediately and quickly reach the stop-profit position.
15. You can’t make a profit until you start doing “trend pullback” type trades. (Join the trending party after the trend pullback)