Trader core principles

1. Money management is fundamental
· This is the cornerstone of trading. Not investing beyond your
ability to bear losses allows you to stay rational in the face of market fluctuations and avoid making wrong decisions due to excessive pressure.
2. Understanding losses is key
· Losses are part of trading and cannot be completely avoided. Only by correctly accepting losses can you remain calm when facing unrealized losses and avoid emotional, gambling-style trades to "recoup" losses.
3. Focus on stop-loss,
not on profit, only look at stop-loss? Because the stop-loss is set before entering the market, the only line you can control (risk manageable); while profit is given by the market and unpredictable (returns uncontrollable). What to do? After entering, just focus on whether the price hits the stop-loss level. As long as it doesn’t hit, hold patiently and don’t be disturbed by short-term price fluctuations. Profits will naturally grow with correct holdings, not through deliberate "watching the screen."
Golden sentence summary
“Let profits take care of themselves!”
This phrase is very insightful. When you control the risk (stop-loss)),
the rest is up to time and the market—patiently hold your position,
and profits will come naturally.