Position Management is Key—Surviving is the only hope
"A single major mistake can lead to total loss"—A true trading expert must first be a master of position management. Positioning is not just a simple allocation of numbers, but a quantitative representation of risk control. Each trade should be strictly controlled within 10-15% of total capital; only by surviving can one have a chance.
Key Level Positioning Method: Support and Resistance Levels
· Initial Position Establishment: Only establish initial positions at key support or resistance levels
· Volume Increase: Wait for an increase in volume before adding positions to avoid the 'false breakout' trap
· Time Validation: Follow the 'Time Principle', any key signal must be confirmed and validated within the level
Daily Bad Habits - Chronic Suicide
"Daily bad habits are the root of errors that follow." Entering positions randomly in the middle of the day, holding onto trades, emotionally opening positions, and making trades without logic... These daily bad habits will erode your trading system like an ant's nest.
Always remember: "There are no flukes in this market; if you can avoid the first day, you can't avoid the fifteenth." Every time you "gain by luck," you are laying the groundwork for future liquidation.
Six Essential Psychological Qualities for Traders:
1. Calm Mind - Staying Clear-headed Amid Market Frenzy
2. Calm Emotions - Keeping a Clear Mind in the Face of Gains and Losses
3. Extreme Discipline - Strictly Following Every Rule
4. Terrifying Self-Control - Resisting All Temptations
5. Persevering Patience - Waiting for the Best Opportunity
6. Decisive Courage - Acting Without Hesitation When Opportunities Arise
In this negative-sum game market, living longer is more important than making quick profits. When you truly understand, you will find that trading is not gambling, but an art.
