Trading Core Concepts

1. Fund Management is Fundamental
· This is the cornerstone of trading. Not investing beyond your risk tolerance 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 properly accepting losses can you remain calm during temporary drawdowns and avoid emotional, gambling-style trades to "recover" losses.
3. Focus on Stop-Loss,
Ignore profits, only look at stop-loss? Because the stop-loss is set before entering the trade and is the only line you can control (risk manageable); while profits are given by the market and unpredictable (returns uncontrollable). What to do? After entering, only focus on whether the price hits the stop-loss level. As long as it doesn’t, hold patiently and don’t be disturbed by short-term price fluctuations. Profits will naturally grow with correct holdings, not through obsessive "watching the screen."
Golden Quote Summary
“Let profits take care of themselves!”
This phrase is very insightful. When you control the risk (stop-loss )), the rest is to entrust to time and the market—hold your position patiently, and profits will come naturally.