1. Stop loss is required. Many people may also like to discuss whether to set a stop loss. But let me tell you, any trading strategy fundamentally must face the maximum potential loss. Every successful trading strategy must control the maximum potential loss. The only difference may be the way the stop loss is presented. There may be some trading strategies that do not include mandatory stop loss, but there are also more stringent restrictions. For the vast majority of ordinary traders, the most effective way to limit the maximum potential loss is to strictly implement stop loss. All traders who cannot control the maximum potential loss are amateurs and will eventually be eliminated. 2. Control trading emotions. Human beings all have emotions, such as greed, fear, regret, hope, and so on. During the trading process, one must often feel the interference of emotions on the transaction. Emotions can lead to irrational human decision-making, making us impulsive to place orders and trade. The best way to address this emotion is to establish trading rules. I have strict regulations on when to enter, when to stop loss, when to take profit, and how many positions to open at once. Trading rules can replace your trading impulses. If you don't meet the rules, you will never take action and execute it in cold blood. This system can solve emotional problems. I have seen many trading experts recently, many of whom are subjective in nature. But even so, I found that they all have strict trading rules. Their trading patterns and behaviors exhibit a strong sense of pattern. So don't think that only quantitative traders use rules in trading. In fact, most subjective traders have a more stringent rule. It's just their pattern, it's difficult to write it into quantitative language. 3. Take advantage of the situation and do not speculate. Not guessing means you shouldn't always guess the bottom or top of the market. Because it's easy to get stuck on top like this. The meaning of following the trend is that you don't always guess the direction, and then you should trade along the direction of this trend. Why do you want to do this? Many people may not have a profound understanding. Today, I want to tell you all to remember that profits come from grasping the inertia of market movements, not the accuracy of personal reasoning. Only when you realize this can you be considered to have entered the door of the transaction. So, when the direction of the trend is different from your opinion, you should remember to cut losses decisively and not be stubborn. 4. Trial and error. The essence of all trading modes is trial and error. What is the core of trial and error? It's illogical, retreat immediately. The meaning is that your entry actually has a logic inside, and when this logic is not satisfied, you have to step out. Only when the logic is satisfied can it be held. For example, if you want to copy the bottom, then you copy it in. That's obvious, you should set a new low stop loss. Because once the innovation is low, it means your judgment is wrong. At this point, you need to stop this loss. For example, if you think the market is a real breakthrough, then the moment you break through, you enter. As a result, after the close, it came back to V, and at this point you should also stop loss because your logic has broken again. You thought it was a real breakthrough, but it turned out to be a fake breakthrough, so you have to leave and continue waiting for the opportunity. Similarly, if you believe that a variety is experiencing a crazy decline today due to panic, it cannot truly hit the limit down. So you started to buy at the bottom near the limit down, but it really hit the limit down. At this point, you need to decisively queue up to cut your position and exit because your logic is wrong again, so you have to leave. All transactions are essentially a trial and error process. But the logic is wrong, come out immediately. If you can achieve this, your trading will definitely not lose a lot of money. 5. Compound interest. Many people believe that in order to truly make big money in trading, one must have a full and heavy inventory. Actually, this view is wrong. Many traders who rely on a single Soha cannot be certain whether they are truly skilled traders. It is also uncertain whether he is truly gifted. The only thing we know is that he must be a chosen one. The reason why he was able to create astronomical profits directly in a wave of market trends is due to the extreme coordination of the market. This requires the blessing of luck, which is not something we can subjectively control. In fact, the most reliable model for us is compound interest. What is compound interest? In trading, the essence of compound interest is the repeated grasp of "positive expected value opportunities". When your trading skills are extremely mature, your trading system will have the most desired market trend. And if you want to make big money, you can achieve this goal by repeatedly grasping this most desired market trend. 6. Patience and waiting. To make a trade, you need patience, which means you must wait until there is a truly worthwhile trading signal before taking action. Many people cannot achieve this. I have seen many people who simply enjoy the pleasure of opening and closing positions, placing orders haphazardly here. Some people are bored by staring at the disk for too long, and then use high-frequency operations to fill the emptiness of that time. Of course, there are still many people who place orders randomly because there are no trading rules. In fact, in trading, you need to remember that 90% of candlesticks are actually unordered fluctuations. If you trade frequently, the fluctuation of transaction fees and disorderly behavior will consume you. Trading requires you to have sufficient patience. You must wait until the most probable trading opportunity arises in your trading system before you can start trying. Actually, I have recently come into contact with some traders and found that they only get one opportunity to hold a relatively heavy position after executing the trading system for two months. They are able to profit entirely because they have sufficient patience. Actually, recently I have also gained a deep understanding that patience is not a virtue when it comes to trading, but rather a necessary rule for us to survive in trading. People without patience who randomly place orders and trade will soon be eliminated.