What is the essence of trend trading?

1. Identify the trend. Never try to predict the trend in advance; always wait for the trend to be established before entering the market. Entering the market early is not trend trading, but gambling.

2. Follow the trend. Trend trading should neither enter the market early nor exit early. You must wait for the signal of the trend's end before exiting. In short, always follow the trend, always be half a step behind it. If the trend exists, hold your position; if the trend does not exist, do not keep your position.

3. Add to positions with floating profits. Another key point of trend trading is to add to positions with floating profits. Due to the uncertainty of future price movements, the underlying logic of trend trading is trial and error, and the core is to use the profits from one trend trade to cover the costs of previous trial and error. The position entered at the beginning of a trend is usually relatively low, and to achieve substantial profits, one must follow the trend and add to positions with floating profits. #币安MegadropSOLV