Trading rules and trading mentality of foreign exchange

Trading should be natural and effortless. Don't force anything, don't go against the market or yourself. Perfect trading is like breathing. You breathe in and out, just like entering and exiting. Be calm and relaxed. Look for opportunities that are visible. Be focused and alert. Take yourself out of the hot market. Be sure to be an observer and wait for opportunities to come. Don't trade markets that you can't understand, and don't think you have to trade every band. There are always many opportunities that fit your character and your ability to read the market. Take them and ignore other opportunities that don't work for you. Don't be delusional about being an all-round trader who can trade in any market.

Don't be confrontational. Trading is not a war. The market is not after you, it doesn't even know you exist. In fact, it has no interest at all. Gold doesn't know you bought them. They do what they do, you just have to adapt to them. The market is your boss. Follow it and get paid, or you rebel and get kicked out. Just as you don't fight the ocean, you just swim in it. If you find yourself in an incorrect current, don't try to change the direction of the current, but find another appropriate one.

Don't guess. Don't impose your personal feelings on the market, and don't expect the market to care about you. The market is neither hostile nor friendly. It just exists, nothing more. You have the freedom to participate or to withdraw. Trading is the ultimate freedom. The gold market is full of endless opportunities for profit and loss. And it all depends on your choice. The market offers you opportunities, and you should open your mind to experience the special language of the gold market. The market has only one language, and that is the language of price, volume and pace. Any tool you use to interpret the market is a derivative of that language. Other than the conversation the market has with you, other miscellaneous things will only interfere with you, making you unable to see the actual price, volume and pace of the market.

Forget for a moment that your money is in hot water in the market. The money in your trading account is just a tool used to make money. Maintain your money-making tools, you need these tools to make more money, and stop losses can avoid serious damage to this tool. There is no certainty in the gold market, everything is presented in the form of probability. Therefore, stop losses are inevitable and belong to the trading. If the market shows that your position has been wrong, you must take a decisive stop loss. In this way, the tool has a chance to continue to serve you. If you make a mistake, admit it immediately. Occasionally gold will shock you out and then bounce back immediately, but don't ignore stop losses because of this. You can always re-establish a position, but once a loss occurs, it is usually difficult to recover. Every loss represents a lesson, and you must decide how much to pay for that lesson. Never overpay. Think of trading as a never-ending monolithic process, and don't overemphasize the importance of individual trades. Any trade is just a part of the whole. Allow yourself to pay and move on.

Don't trade based on retaliation or desperate need for money. The gold market doesn't know about you. It's just a huge space where all the other traders' actions are connected. It doesn't give rewards just because you need them. You are the one in control. It's up to you to make money out of the market or lose out to other market participants.

When traders participate in market behavior, they are putting money in a cauldron. From the moment they start trading, the money is ownerless money. Anyone with skill can take it. When traders put money in, they are ready to lose it. If you are willing to take that risk, put the principal on the table, like everyone else. Then don't feel guilty about winning the money in this cauldron.

It is important to understand that risk is an inseparable part of trading. When you trade one commodity (banknotes) with a less volatile price for another commodity (gold or other transaction object) with a larger price fluctuation, you choose to take a risk. You do this because this price fluctuation is exactly the tool you need to make a profit. Opportunities also come with risks, and you cannot take on only one of them.

Trading can sometimes seem boring. This is normal. You don't trade for excitement. You can sit in front of a computer for hours doing nothing. This is not a profession that pays by the hour. It pays you for the right choices. Often the right choice is to stay away from market behavior. If you want excitement, look elsewhere. Try to learn the joy of self-control and accept boredom as part of successful trading.

Never think: "I know what the market is going to do." No, you don't, and no one knows. You should think: "No matter what the market changes today, I know what I should do." For every possible situation, pre-design the behavior of the reaction. This is the absolute freedom and security you have. As long as you imagine a whole set of "if..., then..." scenarios, the market will have nothing to do with you. In these scenarios, "if" refers to the market behavior, and "then" is your response. You can't control how the market develops, but you can control and adjust your response.

Decide what you want to trade. If it's a trend, go with the trend. If it's a range, go against the trend. Buy high and sell high in an uptrend, sell low and cover low in a downtrend. In a range, buy low and sell high. If you want to operate a trend reversal, don't rely on price data. Never buy just because "the price is cheap enough" or short because "the price is expensive enough", you also need a clear reason.

Define your signals. The signals reflected by your system are the only valid reason for you to execute trades. The rest involves emotions. Never let emotions interfere with your trading decisions. When your trading system sends an entry signal, don't hesitate to open a position. When your trading system sends a sell signal, close it in time. If you have doubts about your trading system, do a paper simulation test first. If your trading system is still in the process of testing, don't make actual trades.

Build positive confidence in your trades. It is important to understand the gains and losses involved in trading. An ambitious trading strategy can maximize profits when you make the right decision, but it can also reduce the number of times you make the right decision. The opposite strategy can increase your chances of being right but reduce the potential profit per trade.

Remain flexible. Revise your trading system in response to market changes. Adjust your ambitions and choose the appropriate trading structure based on the current market conditions you are dealing with. Check your actions at any time to see if they meet current market conditions.

Define what a loser is. Losers think they are more savvy than the market. Losers think they can find all the answers. Losers think there must be some kind of secret system and instructions in the market. Losers think they can avoid losses. Losers don't take stop losses because they think they are right after all. Write down all these characteristics of losers and review yourself often to see if similar characteristics emerge. Don't let yourself be a loser.

Define the winner's way of thinking. Write down the characteristics of all successful traders, read often and measure your distance from them. Use this comparison to find your weaknesses and analyze how to improve. Be absolutely honest with yourself. Anything you don't review yourself, the market will eventually remind you, and this reminder will not be a very good experience.

No matter what setbacks you encounter in the market, it is not its fault. It is not the fault of any market maker or professional. It is not the fault of some mysterious behind-the-scenes manipulator or evil bear. It is always your fault. You make the decisions and implement them. You choose to participate or not to participate. Please take full 100% responsibility. Be yourself. Don't complain or explain. Responsibility brings control. Take complete control of yourself, and trading is an absolute test of self-control. At first, you may feel cold and uncomfortable, and feel that you are living alone in a fortress. Finally, when you gain the advantage and experience the feeling of being at the top, all of this pays off. Total control of your actions, absolute self-control, this is the reward for all efforts. Overall, try to become the master of your own universe.

Learn to laugh at yourself. Don't be too hard on yourself. You don't have to prove anything to anyone. Be the first to laugh at your mistakes. Don't try to be perfect. Outstanding performance is good enough.