When trading CLOs, keep it simple and straightforward with three key points.

First, how to enter the market? Find the right position before jumping in. Buying randomly is worse than not buying at all—wastes your bullets.

Second, where to set the stop-loss? This is insurance. A trade without a stop-loss is gambling; sooner or later, you'll suffer losses. Determine your loss limit and stick to it—there must be a bottom line.

Third, what is the target price? If you don't know where you want to make a profit, the trade has no direction. Set your target to enable rational closing, and avoid being swayed by market noise.

All those fancy analyses, indicators, and news—are distractions. Truly profitable traders are never hostage to these. With the three essentials in place and proper execution, you can achieve steady profits in the CLO market.