Gold Spot / U.S. DollarEducation
Three Taboos in Trading
1. Heavy Positions Lead to Defeat
Regardless of whether it is a long-term or short-term trade, the choice of position size may be more important than the direction chosen. Even if the short-term direction is chosen incorrectly, it is still possible to profit through position adjustments. However, if there is a habit of heavy positions in every trade, the space for operation becomes very small. In ten trades, you can win against the market ten times, but if the market wins against you once, you lose everything.
2. Frequent Trading
For novice investors, when they first enter the market, they may be eager to try and want to enter the market immediately after making a profit. Frequent trading not only increases transaction costs but also reduces the accuracy of trades. It is difficult to achieve high returns in the long run, especially for short-term traders. If you don't have full confidence, don't open a position easily. Once your daily profit reaches your expectations, you can turn off your computer and enjoy life.
Even if you incur losses that day, do not rush to place another trade. When you incur losses, your brain is not rational, and the possibility of losing on the next trade is greater. It is recommended to calmly analyze the market and wait patiently for opportunities to enter. You have to believe that there will be opportunities in the market every day, but if you lose all your capital, there will be no chance to start over.
3. Cannot Accept Stop Losses
For me, stop loss is an art. True masters often face their own mistakes and exit with a stop loss when the market clearly deviates. Sometimes, a small loss can also be considered a gain. People who refuse to admit their mistakes and want to exit every trade with a profit are often at odds with the market and are unlikely to have good results.
I have shared some personal experiences accumulated in the market. I hope my friends can avoid detours. I will also update some trading strategies every day for reference. I hope everyone can have ideal returns in this market. Your likes and follows are my motivation to continue updating.
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