Don't compete with the market
The market embraces and digests everything, it is always right, and it is wisest to conform to the market.
My theory is that behind these major trends, there is always an irresistible force.
It is enough to know this. Being too curious about all the reasons behind price movements is not a good thing.
As long as you recognize where the trend is appearing, follow the trend and steer your speculative boat, you can benefit from it without arguing with the market, and most importantly, don't compete with the market.
The public should always remember the elements of stock trading.
When a stock rises, there is no need to spend the effort to explain why it is rising.
Continued buying will keep the stock price rising. As long as the stock price continues to rise, there will occasionally be a natural small retracement, following the rally, which is generally a fairly safe approach.
However, if the stock price gradually turns into a decline after a long period of steady rise, only occasionally rebounding, it is clear that the route with the least resistance has changed from upward to downward.
That's the case, so why look for an explanation?
There are probably good reasons for the stock price to fall, but these reasons are known only to a few people.
They either keep the reasons secret, or instead tell the public that the stock is cheap.
The essence of this game is such that the public should understand that a small number of people who know the inside story will not tell the truth.
The simple fact is that the market always changes first, and then there is economic news, and the market does not react to economic news.
The market is alive, it reflects the future.
Greed, like fear, distorts reason. The stock market only talks about facts, only talks about reality, only talks about reason, the stock market can never be wrong, it is the trader who is wrong.
The stock market has only one side, the fact that there is one side
Losses are the cost of trading, failure is not terrible, terrible is not to learn enough lessons from failure.
No matter how experienced a trader is, there is always a possibility that he will make a mistake and make a losing trade.
Because speculation can't be 100 percent safe.
The so-called experience is that there are more lessons, more profound, heartache, and embarrassment.
No pain, no memory, no pain, no reflection. That's the thing.
It's normal for a person to make mistakes, but if he can't learn from his mistakes, it's really wrong.
There is nothing in the world that teaches you what you shouldn't do better than losing everything.
When you know what you shouldn't do to avoid losing money, you start learning what to do to win.
If someone told me that my method was not working, I would try it thoroughly anyway to make sure I was sure of it.
Because when I'm wrong, there's only one thing—and that's losing money—that convinces me that I'm wrong.
I know that one day I will find my mistakes and not make them again.
Only when I make money can I be right, and this is speculation.
It takes a long time for a man to learn all the lessons from all his mistakes.
Some people say that there are two sides to everything, but the stock market has only one side: not the bullish side or the bearish side, but the factual side.
Letting this general rule imprint itself in my mind is far more time than most of the more technical things in the stock speculation game.
Losing money is the least thing that bothers me.
After I confessed the loss, the loss never bothered me, and I forgot about it the next day.
But mistakes — no confessions — are things that hurt the pockets and the heart.
If a man does not make mistakes, he will have the whole world in a month.
But if he can't benefit from his mistakes, he absolutely can't have anything good.
Never let losses exceed 10% of capital
Control your trading and manage your funds.
Unless you know that the transaction you are going to make is financially safe, never make any transactions.
The dilemma faced by inexperienced speculators is often to pay too much for each position.
Why?
Because everyone wants to trade. It is not humane to pay too much for each transaction.
People want to buy at the lowest price and then sell at the highest price.
Be at peace, don't argue with the facts, don't hold out hope when there is no hope, don't argue with the quoting machine, because the quoting machine is always right.
There is no place of hope in speculation, no position of speculation, no position of fear, no position of greed, no position of emotion.
Speculators should buy stocks in several parts, and only buy a certain percentage each time.
If I buy a stock that I like in some case and it doesn't perform the way I want it to, that's enough evidence for me to sell that stock.
I came up with my 10% rule – if I lose more than 10% in a trade, I throw it right away.
I threw it instinctively.
In fact, this is not an instinct but a subconscious mind that has accumulated over the years of fighting in the stock market.
You have to obey your own rules – don't deceive yourself, don't procrastinate, don't wait!