It turns out that making money by trading is so simple
Just 3 steps!
Step 1: Look at the trend. The state of a market has three possible outcomes: rising, sideways, and falling. What is a big market? Look at a periodic chart of more than 4 hours. For example, 4-hour, daily, and weekly charts (my personal habit is to look at 4 hours). If the market rises, go long, if it falls, go short, and if it goes sideways, don't make a single order. If the current market is sideways, there is no need to proceed. Just do whatever you need to do!
Step 2: Find the key position. Whether the market is rising or falling, it will jump from bottom to top or from top to bottom like a bouncing ball. What we need to do is to enter the market at the starting point and leave the market at the next landing point. How to find the precise steps becomes the key, which is what we call the key position, the main support and pressure position. The purpose of finding the key position is to identify which stage the current market is in, is it the early stage? The middle stage? Or the final stage? Does the target position meet your profit and loss ratio? We don't do business that loses money. If the profit and loss ratio is less than or equal to 1:1 (lose only 1 yuan, win only 1 yuan), then take a break! If it is greater than 1:1, such as 1:1.5, lose only 1 yuan, win to win 1.5 yuan.
Step 3: Find signals. Generally, if you find the market in the big cycle, you need to find trading signals to enter the market in the small cycle. Everyone is good at different tactics. Some are good at AK47, some are good at M5, some are good at pistols, and some are good at sniper rifles. Even if you are good at everything, you can't take them all with you when you go to the battlefield! So learn 1-2 tactics thoroughly, and you can still kill the devils. Some people are good at looking at moving averages, some are good at hot trend lines, some are good at MACD, some are good at Bollinger Bands, some are good at RSI, some are good at KDJ, and some are good at naked K. All of these are fine, as long as you find the right entry signal, they are all right!
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