Last year, a fan with 1500U came to me wanting to turn things around. I didn't discuss complex indicators with him; I only shared three rules that I learned the hard way with real money. He strictly followed them for three months, and his account grew from 1500U to 50,000U without a single margin call during that time.
How much of these three "life-saving rules" you can understand depends on whether you have respect for this market.
First rule: Divide the money into three parts, survive first, then talk about making money.
I had him split the 1500U into three 500U portions, each with its own fate, and resolutely not to touch them—this was something I figured out during sleepless nights after learning from margin calls:
The first portion is for intraday trading, opening a maximum of two positions a day, and closing the software immediately afterward. The more you look, the greedier you become.
The second portion only waits for trends. If the weekly chart hasn't formed a clear bullish arrangement or hasn't broken through key levels with volume, then absolutely do not act. Frequent trades during consolidation are equivalent to giving money to the market.
The third portion is "emergency funds." When the market suddenly spikes or faces a margin call, use it to add margin. At least it keeps you in the game, constantly in play.
Remember, a margin call is just a severed finger; losing all the capital is like losing your head. Without capital, all opportunities are irrelevant to you.
Second rule: Only take the most certain bite of the trend, and be a turtle at other times.
In my early years, I was repeatedly harvested during choppy markets, losing nine out of ten trades. Later, I only acted in three situations:
When the daily moving averages haven't formed a clear bullish arrangement, I strictly stay out of the market. I'm not afraid of missing out; I'm afraid of making mistakes.
When the market breaks through previous highs with volume, and the daily close can hold, then I test with a small position.
When profits reach 30% of capital, I first take half of the profits. For the remaining, set a 10% trailing stop, without delusions of capturing the entire move.
Third rule: Lock in emotions; execution should be like a machine.
Write out the plan before the market opens, and during the session, only execute:
Set the stop-loss at 3%, and if it hits, cut it immediately, absolutely no "just one more look."
When profits exceed 10%, immediately pull the stop-loss to the breakeven price. After this point, any market fluctuations are profit.
Every day at midnight, shut down on time, no matter how enticing the candlestick patterns are, do not look. If you can't sleep, delete the app— the longer you look, the more chaotic your emotions become, and once they are chaotic, you make mistakes.
You may have previously wandered alone in the darkness of the market, but now, the light is here.
