So, the same goes for trading.๐ฎ
Trading can be reduced to relatively simple rules. ๐ I'll give a few examples:
๐Managing your position size๐:Managing your position size is a crucial aspect of investing, as it directly impacts the level of risk you expose your portfolio.
๐Avoiding excessive leverage๐ธ:Avoiding excessive leverage helps minimize potential losses and reduces risk exposure in trading and investing.
๐Limiting trading losses๐:Limiting trading losses is crucial to protect capital and ensure sustainable investing by setting clear stop-loss orders and managing risk effectively.
๐Using stop-loss, etc:Using stop-loss orders, etc., is a risk management strategy to automatically sell positions when prices fall below a predetermined level, limiting potential losses.
๐ However, even with these no-brainer rules, plenty of folks still ruin their trading accounts or suffer crazy losses. Why? Well, they're all chasing that get-rich-quick scheme! ๐ค But hey, if only it were that simple, right? ๐ Remember, slow and steady wins the race! ๐๐ฐ
BlueGoo : Thanks for pointing out this important part! I totally agree with you (I often use the same weight loss comparison too). This brings up a deep question: If the answer seems so clear, why is it so hard to do? The reason is "inner struggle."![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
Ohine : The only issue with your analogy is that when people attempt to lose weight, they often succeed. So, it's motivating. But with trading, even if you give it your all, you might still end up losing money.

CuryNeil : As someone who struggles with weight, I totally relate, and both weight loss and trading are far more complex than they initially appear.
Trading isn't simply about buying cheap and selling expensive; it's a complex realm encompassing market fluctuations, risk mitigation, and maintaining composure during challenging times.