Trading – An Art, Not a Game of Chance

In traditional belief, many people mistakenly think that trading ( financial transactions) is like playing the lottery: "Guess right and win big, guess wrong and lose everything." In reality, the market is always in constant fluctuation and no one can predict price trends with absolute certainty. Therefore: Risk Management ( is the key to protecting capital. Profit Maximization ) is what helps your strategy generate sustainable profits. Therefore, professional traders always equip themselves with a clear process, rather than simply "choosing which side goes up or down." Risk Management: Minimizing Losses in Adverse Situations Determine maximum loss (Max Drawdown): Before entering a trade, you need to know how much percentage of your account you are willing to lose if your prediction is wrong. Typically, this number is around 1–2% of capital for each trade.Use stop-loss (Stop–Loss): Set a Stop–Loss as soon as you open a trade to automatically cut losses, avoiding the mindset of "trying to recover" that leads to larger losses.Diversify your portfolio (Diversification): Don't "put all your eggs in one basket" – allocate capital into various assets and markets to reduce systemic risk.Risk-reward ratio (Risk–Reward Ratio): Choose trading setups with a ratio of at least 1:2 or 1:3 – meaning the potential profit is 2–3 times the acceptable loss. "Only when you protect your principal capital, do you truly have the opportunity to survive and develop in the market." Maximizing Profits: Mining at the Right Time Identify the main trend (Trend): Follow the big waves, do not "swim against the current". When the trend is clear, the contrary wave is when you are easily swept into mistakes. Use a reasonable take profit (Take–Profit): Do not wait greedily until the price reverses; set profit targets based on resistance/support, Fibonacci, or technical indicators. Increase position (Scaling In/Out): With strong signals, you can break down orders, add more when the price moves in the right direction, and take some profits when reaching the expected milestone. Utilize controlled leverage: Leverage helps amplify profits, but also increases risks. Only use moderate leverage and always combine with Stop–Loss. "When you are on the right trend, do not hesitate to maximize profits, but you must have a clear plan." The 3 "Golden" Keys: Patience – Discipline – Strong Mindset

Patience: The market has hundreds of opportunities every day, but only a few truly quality opportunities. Discipline: Establish rules for entering/exiting trades, manage capital, and absolutely adhere to them; violating discipline is equivalent to suicide in trading. Strong mindset: Don't be arrogant when winning, and don't be discouraged when losing; stay calm to make wise decisions. Conclusion Trading is not merely a test of guessing "Right-Wrong", but an art of balancing risk management and maximizing profits. Long-term winners are not those with the highest prediction rates, but those who protect their capital best when making mistakes and know how to take full advantage of opportunities when they are right. Patience, discipline, and a strong mindset are the three keys to unlocking the door to success on the investment journey. Wishing you soon master the art of trading and reap the rewards you deserve.