1. Always prioritize risk control before thinking about making money

Principal always comes first; strictly lock in single-loss trades; not cutting losses and holding onto losing positions are the root causes of all losses.

2. Only follow the major trend, never guess against the trend

Set direction on the long-term cycle, find entry points on the short-term cycle, only take trend-following trades, and stay out of the market during sideways or unclear directions.

3. Stick to a fixed trading system, do not frequently switch methods

Use only one set of logic for moving averages, MACD, and the Chan Theory; only trade market conditions you understand; avoid trading in markets you don’t understand.

4. Always keep position size controllable, avoid over-leverage and all-in bets

Trade with small positions to test, add or reduce positions gradually; even in good markets, do not bet everything on a single trade; survival is more important than getting rich quickly.

5. Prioritize risk-reward ratio, do not rely on frequent small trades to make money

Strictly follow a risk-reward ratio of over 2:1; multiple small losses can be offset by one big win; avoid small gains that lead to big losses.

6. Only execute, do not predict

Don’t try to top or bottom the market; respond to market movements as they happen; eliminate emotional trading and impulsive decisions.

7. Combine knowledge and action, strictly follow discipline

90% of all losses are caused by not controlling your hands or not following rules; ultimately, trading is about human nature and self-discipline.

8. Maintain steady compound growth, reject overnight riches

Earn slowly and steadily; consistent compounding is the key to long-term profitability; greed leads to inevitable losses.