Why Swing Trading Is the Best for market has characteristics

1️⃣ First Truth: Trading Is a Probability Business

The moment you understand this, everything changes.

A professional trader does not ask:

“Will this stock go up?”

He asks:

“Is this a positive expectancy trade?”

Positive expectancy means:

(Win rate × Average win) – (Loss rate × Average loss) > 0

Example:

Win rate: 45%

Average win: 3R

Average loss: 1R

Expectancy = (0.45 × 3) – (0.55 × 1)

= 1.35 – 0.55

= 0.80R per trade

That is a professional edge.

Most retail traders:

Don’t calculate expectancy

Don’t track R-multiple

Only look at profit/loss in money

That’s gambling.

2️⃣ Understand Market Psychology

VNIndex behaves differently from developed markets.

market is:

Retail heavy

Sentiment-driven

News-reactive

Sector-rotation based

What this means:

Momentum moves are powerful.

But reversals are violent.

If you chase breakout late → you become liquidity for smart money.

Professional adaptation:

Enter early pullbacks.

Avoid extended parabolic moves.

Respect distribution signals.

3️⃣ Stop Thinking Like a Retail Trader

Retail traders focus on:

“Which stock will x2?”

“Is this insider news real?”

“Room phím hàng nói sao?”

Professionals focus on:

Risk

Structure

Liquidity

Capital preservation

You must decide who you want to be.

4️⃣ Capital Protection Is Everything

If you lose 50%, you need 100% gain to recover.

That’s math.

Professional rule:

Max portfolio drawdown target: < 15%

How to achieve this?

Risk 1% per trade

Stop trading after 3 consecutive losses

Reduce size in weak market

If VNIndex structure weak → reduce exposure to 30–50% cash.

Cash is not wasted opportunity.

Cash is defense.

5️⃣ Learn to Identify Market Phases

Every cycle in repeats:

Accumulation (volume quiet)

Breakout phase

Euphoria (margin high, news everywhere)

Distribution

Collapse

Retail buys at phase 3.

Professionals accumulate at phase 1–2.

If you learn to identify distribution:

Long upper wicks

Heavy volume but no price progress

Sector divergence

You will avoid major damage.

6️⃣ Position Sizing Is More Important Than Entry

Even average entry + perfect risk model = profitable.

Perfect entry + oversized risk = disaster.

Professional sizing method:

Risk = 1% capital

Position size formula:

Position size = Risk amount / Stop-loss %

Example:

Capital: 1B VND

Risk: 1% = 10M

Stop-loss: 5%

Position = 200M VND

That keeps drawdown controlled.

Never randomly choose position size.

7️⃣ Avoid Margin Until You Prove Consistency

Margin multiplies:

Profits

Losses

Emotional instability

You should not use margin until:

3 consecutive profitable months

Stable win rate

Emotional discipline proven

Margin before discipline = self-destruction.

8️⃣ Develop “Cash Patience”

In , many months are sideways.

You do not need to trade every week.

Professional mindset:

If no A+ setup → do nothing.

Sitting in cash is a position.

Most traders lose money because they are bored.

9️⃣ Master Sector Rotation

is sector-driven.

When banks lead:

Money flows strongly

Index stable

When small caps lead without index confirmation:

Risk of bull trap increases

When leading sector weakens:

Reduce exposure immediately

Always ask:

Is money flowing into:

Banks?

Securities?

Real estate?

Steel?

Follow strength.

Never fight it.

🔟 Build a Weekly Review Ritual

Every weekend:

Screenshot all trades.

Review:

Entry quality

Stop discipline

Emotional mistakes

Calculate:

Win rate

Average R

Max drawdown

Professional traders improve because they measure.

Retail traders repeat mistakes because they don’t track.

1️⃣1️⃣ Emotional Control Is Your Edge

The market will test you:

Fake breakouts

Sudden news

Gap downs

Panic selling

You must become emotionally neutral.

Ways to improve control:

Reduce position size

Exercise regularly

Do not watch price every minute

Predefine exit before entry

If you feel anxiety watching screen → position too big.

1️⃣2️⃣ Build Your Trading Playbook

Your playbook should contain:

Setup A: Pullback in uptrend

Setup B: Breakout with volume

Setup C: Sector rotation early entry

Each setup must define:

Entry

Stop

Target

Risk

No improvisation.

Improvisation belongs to casino, not capital markets.

1️⃣3️⃣ Accept Losing Streaks

Even professional traders experience:

5–7 losses in a row

That does not mean system broken.

It means probability cycle.

Your job is:

Survive until edge plays out.

If you increase size during losing streak → account damage accelerates.

1️⃣4️⃣ Understand Macro Environment

market heavily influenced by:

Interest rate trend

Credit growth

Real estate liquidity

Global market (especially US)

If US market weak, risk appetite reduces globally.

Always check global context before increasing exposure.

1️⃣5️⃣ Long-Term Professional Growth Plan

Year 1:

Focus on discipline

Survive

Learn structure

Year 2:

Improve consistency

Increase capital gradually

Year 3:

Scale capital

Possibly use moderate margin

Develop multiple strategies

Becoming professional takes 2–3 years minimum.

Anyone promising fast mastery is selling illusion.

1️⃣6️⃣ Build Multiple Income Streams

Professional traders understand:

Trading income is volatile.

You should have:

Stable income source

Or investment portfolio separate from trading capital

That removes psychological pressure.

If trading money is “life-saving money” → emotions will destroy you.

1️⃣7️⃣ Think in R, Not Money

Instead of saying:

“I lost 20 million.”

Say:

“I lost 1R.”

This creates emotional distance.

Professionals think in performance metrics.

Retail thinks in money pain.

1️⃣8️⃣ The Most Dangerous Period

The most dangerous time is:

After 3–5 winning trades.

Ego increases.

Risk increases.

Discipline drops.

Stay mechanical.

Consistency > excitement.

1️⃣9️⃣ Your Identity Must Change

To become professional, stop saying:

“I hope it goes up.”

Start saying:

“If it invalidates structure, I exit.”

Remove hope.

Replace with plan.

2️⃣0️⃣ Final Core Advice

To win in market long-term:

Trade with trend

Respect liquidity

Follow sector rotation

Risk small

Track everything

Stay patient

Professional trading is boring, repetitive, disciplined.

But over years, boring builds wealth.