Forex Trading Core Philosophy: The Key to Sustained Profitability

1. If you can't stand the rise, then there is no need to tolerate the decline; otherwise, you will always fall into the cycle of "small wins and big losses". 2. It is the consensus to let profits run, but you must know when to stop, because profits will not grow indefinitely; therefore, it is essential to learn to stop winning; never turn a considerable profit into a considerable loss.

3. In ultra-short-term operations, there is only one reason to buy - strong, and there is only one reason to sell - no longer strong, rather than waiting until it weakens before selling; as long as the performance is not as strong as expected, you should stop winning and leave the market, rather than waiting until it weakens.

4. Don't worry about a sharp rise after selling, and don't expect a sharp drop immediately after selling. The exchange rate trend cannot be controlled; thinking too much will only lead to hesitation, which is a taboo for short-term operations.

5. If the unprofitable position is held for no more than two hours, you will find that the trap is out of your reach; foreign exchange trading will also become less frustrating.

6. Stuck means making a mistake and refusing to admit it, and the market will naturally issue a huge fine.

7. The market sometimes mocks the right operation, but also rewards the wrong operation. It will try its best to cultivate your luck and interfere with your execution. The market is full of temptations, and if you are not sober enough, you will easily fall into traps and be unable to extricate yourself.

8. In short-term trading, thinking too much can lead to failure; try to switch from the role of the thinker. In times of war, you are just an executor without distractions, and it is only important to execute the instructions of the trading system in place. If you think the system is flawed, you have to wait until the transaction is over before slowly deriving corrections. According to experience, most failures are not due to flaws in the system, but to deviations in the execution process; also, if you want the trading system to be perfect, you might as well calm down and think about it - likeStoneAs advocated, transactions require discipline and execution.

9. If the mind is not liberated, foreign exchange is difficult to solve; sticking to the surface is a technical problem, but it is essentially a problem of thought and behavior.

10. The mission of technology is not to predict, but most people have misunderstandings about this, and this misunderstanding can have devastating consequences; it is self-righteous to predict correctly, and it is regarded as a precursor for others to predict correctly. In fact, it does not matter whether the prediction is right or wrong, the key is whether the response is correct; there is no absolute, only the response.

11. Time changes everything, don't ignore the time factor; a piece of meat stewed for one minute is still raw meat, and the taste will change after two hours of stewing. At sensitive points in important time periods, attention should be paid, as is the case with daily lines and time-sharing operations.