On the road of trading, I have stumbled quite a bit, and gradually discovered some ways to keep my account alive longer.
These five disciplines were earned with my hard-earned money, and I hope they can help you stabilize your rhythm.
1. Learning to cut losses is like learning to breathe
In the past, I always viewed cutting losses as a failure. After several consecutive losses, I wanted to turn it around in one go, but it only got worse. Later, I realized that cutting losses is part of trading; consecutive losses are the market reminding you, "It's time to stop." Taking a step back to reflect is more important than stubbornly pushing forward.
2. Position size is your life-saving card$BTC
Beginners are most prone to going all in, hoping for a big turnaround. I have done this too, and quickly lost everything. Now, no matter how tempting an opportunity looks, I never exceed 10% of my position size. Better to be slow than to gamble.
3. Only follow the trend, don’t fight against it$XRP
Holding onto positions against the trend usually results in losses. When the market is moving in one direction, follow the trend; even if you can’t catch the biggest part, it’s better than trying to catch the bottom halfway up the slope. The first step to making money is to avoid being buried.
4. If the risk-reward ratio is not right, don’t take the opportunity
I’ve set a strict rule for myself: if the risk-reward ratio is less than 2:1, I will not make a move. Before entering a trade, I think about where to cut losses and where to take profits. This way, even if I’m right or wrong half the time, I can steadily progress over the long term.
5. Less trading means more profit
Frequent trading not only contributes to platform fees but also disrupts your rhythm. Now, I only check the market twice a day: plan before the market opens and review before it closes. Reducing unnecessary actions allows for clearer thinking and more decisive decisions.
Trading is not about who is smarter but about who can stick to the rules. These five points may seem simple, but very few can actually implement them. If you are tired of the cycle of explosive rises and falls, start with these basic disciplines to reorganize your trading.
Market conditions change rapidly, and I will shout at the first sign of movement! If you want to secure your chips and seize opportunities, stay tuned, and don’t miss the next wave!@luck萧
