# Four tips for your trading ### **First: Know Your Object** Before we start anything, our objective must be clear. When we start building our portfolio, we must know why we are undertaking this trade. To hedge, to speculate, or to arbitrage? It is essential to know this because this is what will decide your trading actions. If you want to earn a stable income, you will follow a different strategy than if you’re going to hedge market risks. Which derivatives you will trade depends on knowing exactly what your goal is. ### **Second: Entry and Exit Point** We are often confused about when to open a position, and more importantly, when to close it. We get clarity when we do our homework before opening a position. Open a position when the reward is in your favor, and exit when you suffer a loss or when your target is reached. ### **Third: Keep what works** When you are trading in the market, many things will work in your favor, and many things will work against it. Some strategies will generate returns, while some will make you lose. In other words, the right strategy should be pursued and refined, whereas the wrong strategy should be rectified or discarded. Another important thing is to keep adjusting your trading strategies according to market situations. ### **Fourth: Continuous Learning** The more you trade in the market, the more you will learn. Every day there is something new to learn in the market, new tools, new strategies, and new derivatives types keep coming. When you keep yourself updated, your portfolio also stays updated. ### **Disclaimer** The information provided is for educational purposes and should not be construed as investment advice by Deri Protocol. Traders should do their own research before making any investment decision. For more details, visit [https://deri.io](https://deri.io/) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.deri.io/library/academy/general/four-tips-for-your-trading.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.