Let's talk about two core principles in trading: holding cash and cycle regularity.
First, mastering the art of holding cash is the true threshold to entering trading. Holding cash means you only take action when the probability of success is high. Frequent trading will only deplete your capital and mental resilience. Holding cash is about patiently waiting for your signal. Most of the market time is characterized by oscillation; holding cash is not missing out but actively choosing to enter only when your familiar pattern appears.
Second, define your trading cycle clearly and stick to it. Whether you're trading on an hourly, daily, or weekly chart, you must patiently wait for clear signals. Wait for key level breakthroughs and adhere to your cycle rules; do not switch prematurely.
Third, holding cash allows your funds to be effective at critical moments. Your capital shouldn't be consumed by market noise but should be reserved for opportunities that truly matter. Knowing how to wait is essential to seize opportunities. The market is always changing, but human nature remains constant: protect your principal and wait for the right opportunity. This is the discipline every trader should cultivate.
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Let's talk about two core principles in trading: holding cash and cycle regularity.
First, mastering the art of holding cash is the true threshold to entering trading. Holding cash means you only take action when the probability of success is high. Frequent trading will only deplete your capital and mental resilience. Holding cash is about patiently waiting for your signal. Most of the market time is characterized by oscillation; holding cash is not missing out but actively choosing to enter only when your familiar pattern appears.
Second, define your trading cycle clearly and stick to it. Whether you're trading on an hourly, daily, or weekly chart, you must patiently wait for clear signals. Wait for key level breakthroughs and adhere to your cycle rules; do not switch prematurely.
Third, holding cash allows your funds to be effective at critical moments. Your capital shouldn't be consumed by market noise but should be reserved for opportunities that truly matter. Knowing how to wait is essential to seize opportunities. The market is always changing, but human nature remains constant: protect your principal and wait for the right opportunity. This is the discipline every trader should cultivate.