Be patient. Do not overextend trades. Frank Joe once said that there are usually three to five good trading opportunities in any market each year, including individual stocks.
Frank is a speculator who primarily trades medium-term trends. However, his comments are basically applicable to every type of trend. If you are willing.
You can flip a coin to decide: "Long on heads, short sell on tails", and engage in one hundred trades per day.
However, if you do this, it will all depend on luck. If you want to achieve stable profits, you must observe the market you are interested in before establishing positions.
You must grasp favorable factors as much as possible.
Each market index, individual stock, and commodity has its unique pace, rhythm, and nature.
Only when you are familiar with the market conditions can you consider trading, and you must wait for the right opportunity: if you determine correctly, the profit potential is high, if you determine incorrectly, the loss is limited.
Be patient, observe attentively, and when you have a favorable chance of winning, take decisive action.
On another level, if you are only trading your own account and the trading time frame is short, you should limit the number of stocks to less than ten; for futures trading, you should limit the types of commodities to less than five. The most important reason is simply an issue of attention.
How many phone numbers can you remember? Perhaps ten, eight.
Therefore, if remembering phone numbers is difficult, it will also be difficult for you to keep track of ten or more trading positions simultaneously.
Know your positions, pay attention to the...