🍀Risk management: never overlook TPSL settings
- The stop loss is set at 20% of the opening position price (reverse volatility), preventing larger losses.
- The take profit is set at 50% of the opening position price, protecting profit space.
- Start the stopwatch, avoid holding positions too long in a trade, which incurs opportunity costs.
🍀Compound interest rule: adjust position size after profit
- After the first profit: Take "capital + 50% profit" as the position size for the next trade.
- The second time and thereafter: consistently adjust the position size to 2% of the total fund, achieving stable compound interest.
🍀Times to avoid trading
- The first three trading days of each month (unstable market psychology)
- 4 hours before and after the release of U.S. non-farm data
- Friday evenings from 20:00–22:00 (high volatility may occur at the weekend)
- High volatility event periods
