Can you become rich with a winning rate of only 20%? 30 trading truths that make chives counterattack: The most important rule in trading is to defend well, not to attack aggressively. I assume every day that all my positions are wrong. I am very clear about where my stop loss point is, so I can define the maximum drawdown. I am always thinking about how to avoid losing money, rather than how to make money. Don't focus on making money, focus on protecting the capital you already have. Ultimately, the most important thing is how strong your risk control ability is. 90% of the success of any great trader comes from risk control. Once a planned loss occurs, I will not delay, fantasize, or add positions to spread it out. I will leave immediately; If the position is profitable, I will continue to hold it. Risk control is the most important thing in trading. If a losing position has already made you feel uneasy, the solution is actually very simple: exit immediately. Because you can re-enter at any time. A wind to wind ratio of 7.5:1, even if I am a complete fool, I will not lose money even if I make mistakes 80% of the time. What I am looking for is a risk return ratio of 5:1. Five to one means I take a risk of $1 to earn $5. 5: The advantage of 1 is that it allows you to still make a profit with only a 20% win rate. Even if you are wrong most of the time, as long as you make five times the loss each time, you will still make money in the long run. 9. As long as I continue to trade at a loss, I will constantly reduce my position size. When my trading performance is poor, I will continue to reduce my position. Never add positions to loss making orders. When your trading is not going well, reduce the trading volume; When your trading goes smoothly, increase your position. 11. Losses will only breed more losses. Never trade in situations beyond your control. For example, I won't take on large risks before major data is released because it's not a transaction, but rather a gamble. I hope to ensure that the loss in any month never exceeds 10%. 14. Don't be a genius trader. Don't have self inflation. Always questioning one's own abilities. Never feel powerful. Once you think like this, you're done. Never show off in front of the market, never overtrade. I am now more afraid than ever since I first started trading, because I deeply understand how short-lived success can be in this industry. To achieve sustained success, I must maintain fear. I believe one of my strengths is that I consider everything that has happened up to now as history. I don't care about the mistake I made in the market three seconds ago, I only care about what I should do from the next moment on. Trading is a highly competitive business, and you must be able to withstand being fiercely knocked down by the market. Why gamble everything on a single transaction? Why not make life a journey of pursuing happiness instead of pain? Everything I do every day is to try my best to maintain a happy and relaxed state. I believe that earning the most money often occurs at market turning points. 22. Funds, emotions, and main behaviors will first be reflected in prices, and the fundamental reasons that truly support this market will gradually emerge later. Don't wait until the fundamentals are completely clear before taking action, by then profit margins are often running low. My standard for measuring everything is the 200 day moving average of the closing price. The only trick to investing is one question: how can I avoid losing everything? You should always trade according to the current dominant trend. Only about 15% of the time is the market in a trend state, and the rest of the time is mostly in a sideways oscillation. When you see a significant expansion in the range, the market is sending you a very loud and clear signal: the market is about to start moving towards expansion. From a trading perspective, the secret to success lies in maintaining an tireless, inexhaustible, and insatiable thirst for information and knowledge. What you learn from losses is always more than what you learn from profits. Intellectual capital always surpasses financial capital. Either adapt, evolve, compete, or be eliminated.