Trading does not require too much technical analysis for entry and exit points. Instead of spending all day researching these techniques, it’s better to cultivate the courage to open a position.

In principle, you can go long or short at any level.

The real question is: how can you open a large position in such a way that, if your judgment is wrong, your losses are still small? That’s what you should really be focusing on.

How much you earn in a given move, and how much you draw down, determines the quality of your trading.

The market exists because there are always people going long and short at every level. Both sides exist, so prices exist. So in principle, you can go long or short anywhere.

But why is it that in the market, it’s always 2% of people making money while 98% are losing?

1. Who exactly is losing money in the market?
1. People who trade frequently and short-term are losing money, because fees will eat up the majority of their profits;
2. People who trade emotionally, recklessly, without a plan, opening and closing positions randomly are losing money;
3. People who don’t cut their losses after making a wrong judgment are losing money;
4. People who set their stop loss too wide after entering are losing money;
5. People who use too much leverage and don’t stop out in time are losing money.

2. Who exactly is making money in the market?
1. People who have the courage to open positions;
2. People who have the courage to hold onto winning trades after opening a position are making money;
3. People who have the courage to add to their position (pyramid) after making a profit are making money;

The price movement in any given trend is just so much, but the size of your position determines the size of your profit.

Many analysts or signal callers talk a good game, but in reality, they're just talking, trading with $10, using demo accounts, or simply analyzing both sides. You need to understand that anyone with a normal brain can analyze the market and sound convincing, but in financial markets, analysis is the least useful thing.

Most people analyze just to prove themselves right and satisfy their vanity, and then try to get you to follow their lead.

But you won’t be able to keep up.