1. Top fishing is a gambling trade

Most traders are attracted to bottom fishing. But in fact, this is a way of trading that makes it easy for traders to get caught up in and make many wrong decisions.

There are those who say that it is okay to know how to trade. Of course, it is, but before you can really do that, how much does a trader have to lose, how much to pay for a profitable trade.

It is best not to touch the top or bottom fishing, it easily stimulates greed, easy to get traders into trading like gambling with the market.

2. Always be sure of how much money you lose before entering your order

The principle is that simple but how many traders still do not perform well. This is the most basic principle in capital management, knowing how much you lose for a trade is also the answer to your psychology, your next trading strategy.

Once you determine that you will lose an amount of money within your risk limit, the worst-case scenario is still in your plan. Your psychology will be more stable when you understand the worst risk you are taking, but the more important thing is that you accept it.

3. After a profitable moment, you should take a break

Most traders, if they make a profit, will want to gain more, and if they have a loss, they want to remove. This is the mentality of a gambler.

For a trader, it is necessary to know how to withdraw. Know how to stop at the right time. Especially when there is a profit, we need to know how to stop before making something wrong because of the excitement.

After a period of profitable trading, traders easily generate a subjective mentality, easily break the rules. In fact, a lot of heavy losses start with a large profit. Not because the method was ineffective, nor because of poor trader skills, but simply because the trader did not know how to stop at the right time.

4. Ask yourself: Do you really want to place this trading order?

If you want to place a trade just because you want it or because many people say that you should trade like that, then you should firmly stay out.

But if you want to trade because you have an analytical base and are fully qualified according to the principles of the method.

Before trading you should ask yourself this question, to once again confirm your trading idea is not subjective but you have a clear basis for planning and principles.

This small action will help you believe in your plan, yourself, and help stabilize psychology in trading.

5. Don't go against the moving average

Moving averages are an indicator that helps traders determine trends. If we go against the MA, it is against the trend of the market. And this is not advisable because you are choosing a more dangerous direction to trade.

Following the trend will give you the opportunity to make a larger, safer profit, and your trading psychology will be less volatile.

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