Four core survival rules of trading
Anyone who has been in the market knows that there is no such thing as a guaranteed profit; only traders who continuously refine themselves can go far.
The following four core trading concepts are not isolated techniques, but interdependent survival logic that cannot be absent.
1. Establish a dedicated trading method
Trading without a method is equivalent to crossing the street with your eyes closed.
Every line on the candlestick chart hides countless variables: policy changes, capital flows, market sentiment fluctuations…
Without your own trading method, you can only be led by the market, chasing after increases and cutting losses, ultimately becoming the market's 'ATM'.
The methods here can be trend-following strategies, combinations of technical indicators, or even self-summarized models of volume-price relationships, graphic signal systems, etc.
The key lies in 'exclusivity'—it must be verified through your practical experience, fit your personality rhythm, and allow you to maintain a judgment anchor during chaotic market conditions.
Just as a warrior needs a handy weapon, the method is the foundation for traders facing the market: clearly knowing when and why to enter, so as to stay true to oneself amidst volatility.
But remember, methods are not a fixed 'bible', but their core logic must be stable—this is your fundamental difference from blindly following others.
Two, skillfully master stop-loss techniques.
Any trading method has moments of failure, and stop-loss is the lifesaver at this time.
Too many traders clearly have good entry logic but end up holding onto losing positions due to a sudden market reversal, ultimately turning profits into huge losses.
They always think that 'the market will rebound', but forget the leverage effect of the market—1% market fluctuation can swallow 10% of the principal, and often holding on until the end leaves no chance for recovery.
The essence of stop-loss is to admit 'I might be wrong'; it is not giving up, but rather setting a clear bottom line for trading: how much loss can you accept at most?
This number must be planned in advance and strictly adhered to. Just like fastening your seatbelt while driving, it may seem unnecessary at times, but once an accident occurs, it makes the difference between life and death.
Mastering stop-loss is not only about practicing execution but also about cultivating mindset. Accepting small losses can prevent catastrophic large losses; this is the most basic survival rule in the forex market.
Three, always respect market trends.
Going against the trend is like using an egg to hit a rock; although the courage is commendable, the outcome is bound to be tragic.
The trend is the result of the collective forces of the market; it may be the long-term direction driven by policies or the medium-term fluctuations formed by capital accumulation.
No matter what kind of trend, operating against the trend is the most dangerous behavior.
For example, in a clearly upward market, there are always people who think 'it has risen too much and should fall', repeatedly shorting;
Or continuously bottom-fishing in a downtrend, hoping for 'rebound profits'.
The result is often being taught lessons by the market repeatedly: the power of the trend is far stronger than personal judgment.
Respecting the trend does not mean you cannot take contrary positions, but rather to be clear that 'counter-trend is the exception, trend-following is the norm'.
It's like rowing downstream can advance easily; going upstream, even if you exert all your strength, you may still be stuck in place.
Accurately judging trends and firmly following trends allows the power of the market to become your aid, rather than a hindrance.
Four, maintain sufficient trading patience.
All profitable trades are hidden in the patience of 'being able to wait'.
The market presents countless seemingly tempting opportunities every day, but the ones that truly fit your trading logic and belong to you are actually very few.
Many traders' losses stem from 'not being able to resist': seeing others' assets rise while their own positions remain unchanged, they rush to change their positions;
Clearly not having signals that fit your method, yet fearing to miss out on the market, you force yourself to enter.
The result is often losing money in unfamiliar markets and also missing the profit opportunities that should have been seized.
When the market has not shown your trading signal, you need to have the patience to stay in cash and wait, decisively acting only when the signal clearly appears.
Just like a hunter hunting, most of the time is spent lurking and observing, only pulling the trigger when the best opportunity arises.
Behind patience is firm trust in one's trading method and respect for the market—knowing when to act and more importantly, when to hold back.
Conclusion.
The above four core rules are interconnected: having a method but not setting stop-loss will eventually lead to being knocked back to reality by a mistake; understanding stop-loss but not observing the trend will lead to repeated stop-losses in a volatile market, consuming principal;
Watching the trend but lacking patience can lead to losing direction in frequent operations. Only by ingraining these four concepts into trading habits can one walk steadily and far amidst the storms of the forex market.
There are no shortcuts on the trading path; only through continuous honing of skills and refining of mindset in real combat.
May every trader be able to maintain their heart amidst the ups and downs of the market and move forward steadily.
