Squeeze the most out of the market, but always in a sustainable way. Don't forget that everything that can generate big profits is also usually the most risky.
The key is sustainability, it's no use having a high Reward/Risk if in a single operation you destroy everything built previously, that's why leverage can be a very efficient weapon to optimize profits and, at the same time, your worst enemy.
Use leverage rationally and conservatively, ONLY when the operation is a TRIPLE A. Keep the risk under control at all times, close the operation when the opportunity shows signs of disappearing, regardless of whether you are losing or winning little... That's the key.
Taking profits, even if they are small, is always more pleasant than losing everything, get used to taking them regularly, don't try to be the smartest in the market because you will die being the dumbest.
Remember, trading is a zero-sum game:
"When an investor sells a stock at a higher price than he bought it, he makes a gain that is exactly equal to the loss of the buyer, who buys the stock at a higher value. On an individual level, each transaction is a zero-sum game: one investor's gain represents another investor's loss."
Good luck.
Risk management is important. After all, that is the quickest way to lose money and preventing those losses will help more in the long run. I agree that the profits are worth taking to just take some risk off the table.
'For every seller is a buyer'
Yeah trading is always in both directions, but leverage is for me the one to stay out of. Especially with those wicks everywhere....the exchangwa want to shake you out, and i have never slept better only using spot
Exactly!
Every trader needs to know about risk management, your post is a small lesson for us.
Great!