The "Inhumane" Nature of Trading


To make money in trading, you must do operations that are "counter to human nature":
1. When others are greedy, you are fearful.

2. When others are fearful, you are greedy.

3. When the market is good, control your position size, don't add to your position.

4. When the market is bad, stay patient, don't cut your losses.

5. When you make money, don't be proud, continue to follow the rules.

6. When you lose money, don't be discouraged, review and find the reasons. Trading is a battle against your own human weaknesses.
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