First, your philosophy must encompass everything stated by the market, with no subjective or arbitrary parameters. Believe in everything you observe.  

Second, if you want to know what the market will do next, observe what it is doing now (whether rising, falling, or moving sideways).  

Third, when initially establishing a position, set stop-losses based on recent market volatility and only participate in markets that have already shown momentum.  

Conditions for a Relatively "Perfect" Trading System:  

1. Simple, not complex (approach the market with an uncluttered mind, observe it intuitively, and stay true to its essence).  

2. Follow the market and trade with the trend.  

3. Adaptability (fully flexible, devoid of any personal subjective views).  

4. Capable of handling any time frame.  

5. Signals should not lag excessively (able to react quickly to market changes).  

6. Accurate judgment (the market will inform us).  

7. Avoid arbitrariness and subjectivity.  

When to Enter?  

1. Breakouts.  

2. Trend reversals.  

3. Gaps or significant intraday price spreads.  

Ten Golden Rules:  

1. Never average down or add to a losing position to "reduce cost."  

2. Set stop-losses when adding to a position.  

3. Never move a stop-loss unless the market proves you right.  

4. Never let a reasonable loss escalate.  

5. Never exceed a 10% loss per trade or per day.  

6. Do not predict or attempt to catch tops and bottoms.  

7. Do not trade against the trend.  

8. Stay flexible—no trading system is 100% accurate.  

9. Exit early when trades go poorly and take time to cool off.  

10. Know yourself.