Pearls of wisdom! The most comprehensive compilation of the world's top traders'
2024-07-26
In the initial years of trading, novice traders should regard themselves as apprentices, either to a mentor, a book, or the market itself. During this period, do not expect significant profits; instead, traders should focus on training themselves and earnestly learning trading experiences and skills.
Here are several major trading perspectives endorsed by top traders around the world, which everyone can save and read slowly!
Preserving strength is crucial:
If you are wrong, you must quickly extricate yourself. There is an old saying, "As long as the green hills are there, there will be firewood to burn." You must preserve your strength to make a comeback.
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Being eager to recoup losses is prone to failure:
No matter when you suffer a setback, it is hard to bear. Most traders, when suffering significant losses, always hope to immediately make up for it. As a result, they increase their positions more and more, wanting to make a comeback in one fell swoop. However, once you do this, it is equivalent to being doomed to fail. After being hit, the correct approach is to immediately reduce the trading volume or stop trading. What you need is not to earn how much money to make up for the loss, but to regain your confidence in trading.
Having enough patience is essential:
The main reason why some traders continue to lose money is that they lack patience, which leads them to ignore trading principles and enter the market rashly without waiting for the overall trend to become clear or for a situation they can control.Avoid Frequent Trading:
A common mistake made by many traders is the excessive frequency of their trades. They do not carefully select the right trading opportunities and feel compelled to trade whenever they see market fluctuations, rather than taking the initiative to patiently wait for good trading opportunities.
Masters can profit because they have patiently done a lot of work before entering the market. However, many people start to take trading lightly after making a profit, and their operations become more frequent. The subsequent losses will make them unable to cope, leading to huge losses, and even losing their old capital.
Impulsive Trading is the Most Deadly:
The worst trades come from impulsiveness. The most destructive mistake in trading is excessive impulsiveness. Everyone should follow established trading signals and never hastily change their trading strategy due to a moment of impulse. Therefore, not being impulsive is the first element of risk control.
Risk Control is a Prerequisite:
To engage in trading, you must learn to control risks. You need to learn to prepare for the worst, so you must operate in small quantities and control each loss between 1% and 2% of your capital.
A Steady Mindset is the Foundation:
To trade, you need to learn to maintain calmness. Traders are like boxers; the market can deliver a heavy blow at any time. You must remain calm. When you lose, it means the situation is unfavorable to you. Don't rush, take your time. You must minimize losses and try to preserve your capital as much as possible. When you suffer a significant loss, your emotions will inevitably be greatly affected. You must reduce the volume or stop trading, and consider the next trade after a period of time.Additionally, regardless of whether you incur significant losses or make substantial profits, it is essential to maintain a calm demeanor. Consistently analyze each transaction daily to check for any violations and to understand the reasons behind successful trades. For less favorable trades, conduct a thorough self-reflection to identify the root causes. To consistently perform well, you must pay close attention to every transaction.
Adhere to trading principles:
Some individuals alter their trading systems when they suffer losses, while others do not believe in trading systems at all. They doubt the instructions issued by the systems and frequently rely on their preferences to enter and exit the market. In contrast, experts always follow the trading systems, even steadfastly executing them during extreme market conditions. Remember that trading is not about seeking excitement but about achieving victory.
Flexible trading strategies:
Your trading strategies should be adaptable to respond to market changes. A common mistake made by most traders is having inflexible strategies, and they often complain that the market is completely different from what they expected. However, isn't life and the market always full of uncertainties?
Remember to practice sound money management:
During the trading process, learn self-discipline and manage your funds effectively. Try to relax when operating, and if your position is unfavorable, exit the market. If it is favorable, hold on to it. Your focus should be on minimizing losses rather than maximizing profits. When your trading performance is poor, reduce or stop trading. When you are in a good trading situation, increase your transactions. Never enter the market recklessly when you cannot control the situation.
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