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Bullish trends never die, bearish trends never end. Since bullish trends never end, trading means opening long positions at the price where the bulls cut their losses and opening short positions at the price where the bears cut their losses. Where do the bulls cut their losses? Where do the bears cut their losses? Today, a major market maker asked me this question. I replied that I have never cut my losses. Brothers, is there anything wrong with my answer?
Whenever the market moved, they wanted to jump in; seeing others make money, they got itchy; losing money, they immediately wanted to recover it. The result was slow gains and quick losses, with emotions exploding every day.
The real turning point was when I set a strict rule for them: no trades that they would regret if they didn't make today.
This is Dàyong's core trading principle:
1. Trade infrequently, no more than twice a day. When there’s no suitable market condition, stay in cash peacefully and avoid blindly following the trend;
2. Only aim for "certainty" in profits, avoid gambling on insider tips or chasing explosive rallies. Trade only when the trend is clear and follow the momentum. Although the gains are slow, losses are almost avoided;
3. Stick to the principle of capital safety, pre-judge the worst-case scenario before each trade. If you can't handle the worst, don't enter the position;
4. Take profits when the time is right. When the daily profit target is reached, exit decisively. Don’t be greedy or stubborn in the market.
Whenever the market moved, they wanted to jump in; seeing others make money, they got itchy; losing money, they immediately wanted to recover it. The result was slow gains and quick losses, with emotions exploding every day.
The real turning point was when I set a strict rule for them: no trades that they would regret if they didn't make today.
This is the core trading principle of Da Yong:
1. Trade infrequently, no more than twice a day. If there’s no suitable market condition, stay in cash peacefully and avoid blindly following the trend.
2. Only aim for "certainty" in profits, avoid gambling on insider tips or chasing explosive rallies. Trade only when the trend is clear and follow the momentum. Although the gains are slow, losses are almost avoided.
3. Stick to the safety bottom line of principal, pre-judge the worst-case scenario before each trade. If you can't handle it, decisively stay out.
4. Take profits when the time is right. When the daily profit target is reached, exit decisively. Don’t be greedy or stubborn in the market.