The Way of Trading - Six Core Principles

1. Calm and Far-reaching: Trading is like a long marathon, not a short sprint. Once you become impatient, you are likely to act blindly, ultimately leading to increased losses. Staying calm allows you to move forward steadily.

2. Go with the flow: Never go against the market trend. Learn to patiently wait, accurately identify trends, and seize opportunities. Operating against the trend often leads to failure.

3. Avoid frequent trading: Frequent operations not only increase trading costs but also raise the likelihood of making mistakes. True trading experts understand the importance of patiently waiting for excellent opportunities to arise.

4. Face the losses: Losses are a common occurrence in trading. Top traders focus more on stop-losses and risk management rather than trying to avoid all losses.

5. Amplify the profit-loss ratio: Compared to the win rate, we should focus more on opportunities that have high profit potential and small stop-loss space. Only in this way can we avoid the situation where one loss wipes out multiple profits.

6. Earn within the scope of understanding: Stick to your own capabilities and consider giving up on opportunities that are difficult to understand. Only by continuously improving your understanding can you achieve profits in fields where you excel. Participating in erroneous opportunities that exceed your understanding is the real failure.

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