Summary of the trading system
The essence of trading is: stop loss if wrong, hold on if right, make small losses and big profits, and make big profits and losses. Specific to each core link:
Follow the trend: find a moving average to simply divide long and short positions, only go long above it, and only go short below it.
Opening a position, testing a position: follow the trend, follow the big trend and go against the small trend, and consider the potential profit and loss ratio that is large enough when entering the market, that is, if you enter the market at this position, if you are wrong, the stop loss is very small, but if you are right, the profit is very large, generally at the bottom of the trend or the early stage of the trend.
Opening a position, stop loss: If the key point is broken, you must stop loss, and you can't take chances. If the price comes back, you can find another opportunity to enter the market. Don't be lucky, thinking that you may be able to resist it, and you can't flatten the loss.
Adding a position: adding a position with floating profit, adding a position is the core of making big money. The price rises as expected and then pulls back. Add a position at the pullback stop support level or the previous high point of the breakthrough, follow the big trend and go against the small trend.
After adding a position, move the stop loss point to a new key point. The bottom position is safe, and only the stop loss risk of the added position remains. If it fails, stop the added position and wait for the next opportunity. If it continues to rise, hold the position firmly, continue to wait for the callback to add positions, and continue to move the stop loss. Until the last move is stopped or the head signal appears to stop profit.
Stop profit: Don't stop profit easily at any time. This is the key to making big money. You can exit in batches or all at once, preferably all at once, because you can ask yourself to wait for the head signal with the highest probability. If it is a right-side transaction, the floating profit will definitely retreat, and you must accept it in your heart. Don't think about selling at the highest point, or think about not selling at the highest point, and think that you have to wait for the highest point to sell if you lose money.
As long as you can master and follow these principles in practice, and maintain discipline and consistency, you will find that making money is a natural thing.
