In trading, what is the biggest misconception? Many people think they need to master a bunch of technical indicators to make a profit. But the truly successful people I've seen rely on the simplest logic – once you overcome the challenges of human nature, money will naturally come.
Last month, a friend reached out to me, saying his account had only 4200U left and asked me what to do. I didn't recommend any magical indicators, but just told him to remember three things. And what was the result? In five weeks, his account shot up to 68,000U without a single liquidation.
These three things sound simple, but less than one in ten can actually do them.
**Rule 1: Position is Life** When the market is unclear, never go in heavy. Start with one to two percent of your funds to test the waters, and once the direction is clear, gradually add more. Most people get liquidated because they are too anxious—seeing the market and wanting to rush in, only to find the direction reverses, and they lose even their principal. Slow is fast.
**Article 2: Losses are not compensated, only profits are added** This is the most difficult to execute. At that time, he asked me: "If I don't average down when it drops, won't that lead to more losses?" On the contrary. Adding to losing positions is equivalent to doubling down on a wrong judgment, and the deeper you go, the worse it gets. The correct approach is: let the profitable positions continue to expand profits while protecting the principal. This is how an account grows, not by averaging down on losses.
**Article 3: Don't go against the trend** When the market goes up, go long; when it goes down, go short. Is it simple? Too simple. But many people just can't control themselves and always think about picking bottoms and tops to get cheap deals. What’s the result? They get repeatedly slapped in the face by the trend and end up doubting life. Greed is the greatest enemy of trading.
He can turn things around, and it all comes down to two words: restraint. While others act impulsively, he waits; when others panic, he dares to take action. Technical indicators? They're really not that important. What matters is whether you can control your restless heart.
Many people have been losing, not because they are not smart enough, but because they haven't found a way to counteract human nature. Opportunities come every day, but those who can seize them are always those who have discipline. Understanding these three iron rules, even small capital can rise.
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Frontrunner
· 8h ago
Indeed, the word restraint is very appropriate. I used to be the kind of person who wanted to buy when I saw a fall and chase when I saw a rise, and the result was predictable... Now I've gradually learned to wait, and as a result, my account has been less turbulent.
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RetroHodler91
· 8h ago
The phrase 'self-restraint' is absolutely spot on; I've fallen for this too many times.
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NFTDreamer
· 8h ago
Wow, this story sounds a bit suspenseful, going from 4K to 68K in 5 weeks? But the part about the position really hit home for me; I used to be too greedy and would often go for a full position. Now I've switched to a small long order increase the position method, and my mindset has really become much calmer.
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SerumSquirrel
· 8h ago
You are absolutely right, but executing it is just too difficult. I am the one who can't control my hands; when I see a fall, I want to average down, and as a result, I just end up sinking deeper.
In trading, what is the biggest misconception? Many people think they need to master a bunch of technical indicators to make a profit. But the truly successful people I've seen rely on the simplest logic – once you overcome the challenges of human nature, money will naturally come.
Last month, a friend reached out to me, saying his account had only 4200U left and asked me what to do. I didn't recommend any magical indicators, but just told him to remember three things. And what was the result? In five weeks, his account shot up to 68,000U without a single liquidation.
These three things sound simple, but less than one in ten can actually do them.
**Rule 1: Position is Life**
When the market is unclear, never go in heavy. Start with one to two percent of your funds to test the waters, and once the direction is clear, gradually add more. Most people get liquidated because they are too anxious—seeing the market and wanting to rush in, only to find the direction reverses, and they lose even their principal. Slow is fast.
**Article 2: Losses are not compensated, only profits are added**
This is the most difficult to execute. At that time, he asked me: "If I don't average down when it drops, won't that lead to more losses?" On the contrary. Adding to losing positions is equivalent to doubling down on a wrong judgment, and the deeper you go, the worse it gets. The correct approach is: let the profitable positions continue to expand profits while protecting the principal. This is how an account grows, not by averaging down on losses.
**Article 3: Don't go against the trend**
When the market goes up, go long; when it goes down, go short. Is it simple? Too simple. But many people just can't control themselves and always think about picking bottoms and tops to get cheap deals. What’s the result? They get repeatedly slapped in the face by the trend and end up doubting life. Greed is the greatest enemy of trading.
He can turn things around, and it all comes down to two words: restraint. While others act impulsively, he waits; when others panic, he dares to take action. Technical indicators? They're really not that important. What matters is whether you can control your restless heart.
Many people have been losing, not because they are not smart enough, but because they haven't found a way to counteract human nature. Opportunities come every day, but those who can seize them are always those who have discipline. Understanding these three iron rules, even small capital can rise.