10
2024/05
Boost your investment skills with tips from expert traders today!
The trading market is ever-changing, and for every trader who enters it, regardless of their pursued investment strategy, the ultimate goal is to make money. However, why is it that only a few indeed amass wealth? Our professional trader reveals this astonishing reason.
1. Understanding the root causes of trading failures
Bill Gates, the world’s richest man, once said: “Real wealth equals mindset plus time.” In the trading market, winners and losers each have 24 hours daily. Within 1440 minutes, the trader’s mindset is the boundary between success and failure.
In the trading field, both “novice” traders entering the market and experienced “veterans” fail to trade well, not because of their lack of ability but due to the absence of correct trading concepts, leading to leaving the market in failure. The key to successful trading lies in possessing the proper trading mindset.
No one can genuinely foresee and accurately predict the future trends of the risky market. Many novice traders often enter the market based solely on intuition, needing a more logical basis for their buying and selling actions.
Such trading behavior inevitably results in “money earned by luck ultimately being lost by strength.” Faced with market uncertainty, one can only feel at a loss.
Similarly, even experienced traders with some trading experience may need help understanding why they enter or exit a trade and how to control funds and positions.
Hence, no matter how busy you are in trading, the word “profit” can only serve as a “booster” occasionally, motivating the lost self.
2. Focusing points in the profit model of experts
No one can accurately predict future market trends; you only use rules. Consistent trading rules enable you to stand on the side of the majority in this game of probability.
Profit is not obtained by predicting the market win rate but by relying on “minimizing losses when you are wrong and maximizing gains when you are right.” This is the most significant difference between practitioners and analysts.
The purpose of your buying is not to lose money but to profit and maximize profit as much as possible: when the trend is favorable, you must be greedy and let profits run; when the trend is unfavorable, stop fantasizing and cut losses.
No one knows how tomorrow will unfold; trading is a gamble, using a specific cost to bet on uncertain profits, only avoiding when fatal risks come; when risks are controllable, the future is worth a gamble.
3. Persisting in "Plan My Trade, Trade My Plan"
After-market analysis determines how to trade according to rules, and during trading time, all you do is trade according to the rules.
Our expert trader have never believed that the specific entry point is significant in trading. Only the pursuit of marginal profits emphasizes particular entry points. Overemphasis on specific entry points in trades that do not pursue marginal profits will result in more losses of opportunities and profits.
The specific entry point of buying will not be the focus of my trading. He looks at the trend of the day and previous days after the market closes, judges a direction based on experience, finds a suitable price range, and then buys and holds.
He only spends a little effort studying where the price will stop in specific trades, but many stockholders emphasize how important specific entry points are.
If the precise entry point occupies a critical position in your trades, and if you do not operate on a pursuit of marginal profit scalping basis, it can only mean that you do not understand what a trading strategy is, you don’t even understand what a trend is, let alone what you are trading.
4. Controlling the amount of trading profit and loss
Our expert trader buying or selling is not a matter of his assumptions; it is letting the actual trend determine whether to buy or sell. A real trading expert will only allow themselves to fall into passivity at some time, and he will pursue perfect trades.
Regardless of the rules you use as a trading model, consider one thing: whether this rule strategy, over a more extended period, can increase your capital equity, rather than using isolated few trading days or occasional trades as the basis for your trades!
He will not adjust his trading rules for specific market conditions. The only way is to stick to his rules, regardless of market conditions, hold on to his operation’s bottom line, and maintain the consistency of trading rules.
Not all market conditions should be profitable under your trading rules; you must understand and accept this.
Consistency means that you always follow your own rules: the market and external factors only influence you if there is a significant loss within the rules.
