Learn from successful individuals
Before entering trading, learn from those who have succeeded, adopt their working processes (Successful Trading Systems). There’s no shortcut or magical formula. Your task is to continuously learn and accumulate knowledge after each trade.
Trend is always your best friend
In trading, never guess, never bottom fishing, never buying the top. Instead, find PRICE CHANNELS and follow trends. Always seek trends and follow them. This is the ultimate recipe for success.
Practice consistently
To achieve big things, start with small tasks and gradually scale up. This applies to trading as well. Begin by learning with a small account of a few hundred USD, and thoroughly practice strategies to make others’ knowledge your own before increasing trading volume.
Always remember: “Hearing a hundred times is not as good as seeing once, and seeing a hundred times is not as good as practicing once.”
Equip yourself with knowledge
Don’t exhaust yourself searching for miraculous formulas. You’ll undoubtedly be tempted with countless magical indicators, fancy tools, or superhuman robots, but unfortunately, these are all illusions.
Be equipped with foundational knowledge to walk on your own two feet, to explain situations you encounter.
Master your emotions
Trading is a stressful endeavor that demands high concentration. At times, it can take you to the peak of tension, this is a true story.
Trading with emotions can lead to unnecessary mistakes such as entering a position too early, misjudging trade volume, failing to set stop losses, ect. Master your emotions, focus on the end goal of each investment cycle.
The power of calmness
When you enter a certain trend and face losses, your emotions may immediately change, frustration arises, and you might want to recover the lost portion by increasing your trade volume 2-3 times. This is extremely dangerous as it will destroy the principles you were previously instructed on, making your losses even heavier.
Stay calm in all situations, analyze thoroughly to find technical convergence zones, then wait for the price to move towards them and act accordingly.
When you feel unsure, take a break
When in doubt, lacking confidence, just stop. Don’t do anything, just observe the market from the sidelines.
Do not trade if you doubt. If you doubt the trend, stop trading. Use that time to research the market, consult experienced individuals.
Never risk what you can’t afford to lose.
Prepare a trading plan before entering a trade
Because during trading, there will be many variables, and if you don’t prepare a trading plan and strategy before entering a trade, you will find yourself not knowing what to do, and of course, you’ll incur losses.
If you fail to plan, you’re planning to fail.
Do not risk more than you are willing to lose. Simply put, if you’ve planned for a longer-term strategy, don’t set orders with leverage beyond your control, leading to unexpected stop losses or needing to inject more funds into the account to hold the position. Keep your risk within your tolerance, and this way, you can maintain your account for a longer time, reducing losses when the market goes against you.
The power of simplicity
In technical analysis, choose a simple and easy-to-implement method and strictly adhere to it. All the talk about this strategy and that strategy, these parameters and those parameters, will only give you a headache and won’t lead to a clear strategy.
Regularly review your trades
Make it a habit to review your trades and analyze the strengths and weaknesses in your trading approach. Then, learn from those experiences for your future trades.
By. Master Pham Thanh Bien
