A reasonable take-profit can guarantee the expected profit when making a profit

Adding others’ experience is a must for every trader to grow. Whether a novice or a veteran, you need to constantly learn in the face of the ever-changing market. Today, we specially invited Mr. Hu Hao, an outstanding trader from EagleTrader, to share his practical experience and learning experience in trading. In a brief interview, Mr. Hu Hao seemed to have his own unique view on position planning. So how do you plan your position?

Strictly control positions

When talking about risk management, Mr. Hu Hao’s answer seemed particularly pragmatic: “I always strictly control my positions and set clear stop-profit and stop-loss points to ensure that the profit-loss ratio reaches at least 1.5:1 and above. Because a reasonable stop-profit can guarantee the expected returns when making a profit, and stop-loss can protect the principal from greater losses when the order is made wrong. At the same time, strictly controlling the positions can prevent myself from causing mentality when the market fluctuates greatly and quickly.”

Make a good position planning

In the formulation and execution of trading plans, Mr. Hu Hao also showed a high degree of self-discipline: “Before every transaction, I will make a position plan based on the entry point and adjust the profit-loss ratio according to the market conditions. Only those trading opportunities that I think I have a greater confidence will I increase my position appropriately. While entering the market, I must also make a reasonable profit-loss ratio plan. In any case, I will ensure that the profit-loss ratio is not less than 1.5:1.”

Exam experience

Recalling the experience of the first and second interviews at EagleTrader, Mr. Hu Hao said: “The psychological pressure during the first exam is relatively small, so I can deal with it more calmly. This also reminds me that it is crucial to maintain a peaceful mind during the transaction process.”

Meet the bigger challenge

For the future, Mr. Hu Hao has a clear plan: “I plan to take the EagleTrader exam again to manage larger funds. This is both a challenge and an opportunity for me. It will prompt me to continuously improve the trading system, and at the same time exercise my trading mentality, so that I can be more relaxed when facing the market rise and fall.”

Seize the right opportunity

For novice traders, Mr. Hu Hao gave three valuable suggestions: “(1) Infrequent trading: the more frequent trading, the more stop loss orders, and the greater impact on mentality. We want to be lions on the grassland. Profit is the antelope we call. If we don’t move, we have to try to catch the antelope;

1. No heavy positions: heavy positions are a taboo in trading, because heavy positions have large fluctuations in trading funds and have a greater impact on their mentality, so it is difficult to get the expected profit margin, and it is likely to take profits and leave early, resulting in unreasonable profit-loss ratio;

2. Strict stop-profit and stop-loss: Not setting stop-profit and stop-loss points in trading is also a taboo in trading. All trading is an expectation, and it is a prediction made by traders based on the previous market trends and current news and technical aspects. That is to say, trading is a probability of doing it. Since it is a probability, it cannot be 100% correct. Moreover, the market fluctuates within a certain price range most of the time, so it is necessary to set a stop-profit and stop-loss. Take-profit can help us settle profits and continue to look for the next trading opportunity. Stop-loss can help us get out in time when the market makes a mistake and avoid more capital losses. ”

After the interview, Mr. Hu Hao shared his experience, which benefited a lot. The risk management, trading plan formulation and execution, and suggestions for novice traders that he emphasized are valuable experiences that have been tested by the market. Mr. Hu Hao’s trading style shows a rare rigor and down-to-earth manner, and takes every step firmly and powerfully, which is worth learning from by all traders.!

I believe you have received a lot of incentives and inspiration for the generous sharing of such excellent traders? If you also want to become an EagleTrader trader like Mr. Hu Hao, then click:

https://www.eagletrader.com.cn/Register now to join EagleTrader and become a top trader with us and unleash your trading potential!