Minimizing losses is the fundamental guarantee of long-term profit. So in order to minimize your losses, any order must have a stop loss.

Accept the failure and turn your attention to the next transaction as soon as possible.

No one in this world can guarantee that every transaction is profitable, so when you lose money on one transaction, forget it as soon as possible and turn your attention to the next one. Otherwise, you will lose more and more.

The scale of the transaction is controlled within the range of losses you can bear.

Although we all know that it is foolish to trade more than we can bear, this stupidity is still very common among us traders. The purpose of doing asphalt trading is to improve the quality of life, so don't use money that should not be used, such as monthly living expenses and pension savings, and don't borrow money to do asphalt trading. Because if you do this, your mentality will be the same as that of ordinary gamblers, and the final result is usually nothing.

4. When your transaction is profitable, protect the profits you have won.

Protecting your profits is another important factor for you to obtain stable long-term profits. When you are in a profitable position, it is very important to raise your stop loss point accordingly. In this way, although you want to hold this warehouse for a longer time and get more profits, at least your minimum profit is guaranteed.

5. The risk/return ratio should be at least 1: 1.5.

When you want to place an order, you must think clearly about the possibility of profit and loss. Suppose the profit rate is 4000 yuan, the loss rate is only 2000 yuan, and the risk/profit ratio is 1:2, which is worth a try.

6. Don't overload your account.

Because spot trading can enlarge the amount of capital control, the usual ratio is 100: 1. It means that 1000 can be controlled 100000. Then this function of capital amplification is like a double-edged sword, and high returns are accompanied by great risks. Therefore, prudent investors usually control the maximum loss at a time within 10%, and the profit will be relatively stable and long-term. So our goal should be to be a good investor, not a speculator.

7. Set a realistic vitality goal.

Don't involve feelings and money. Simply treat every order as a business transaction, and don't involve feelings. If there is a loss, learn to accept it and look forward. Learning how to accept failure is more important than success. This is similar to an old saying of China that failure is the mother of success.