This "Survival Guide to the Currency Circle" is given to all my friends. It is my code of how to stay involved in the currency circle in the past few years.

I hope everyone can like, comment and follow. If there is something wrong or something left out, leave a message below and I will correct it.

1. Yesterday, I saw a few big Vs saying that it was going to plummet, and today I read about them again. As a result, they changed the content and changed it to an increase. They also posted new updates, saying how accurate their predictions were. I went back and looked through all the updates of these big Vs; Oh my God! I just want to say it’s awesome! 100% accuracy, whether it is the trend of the pie or the meme dog, it is all about predicting in advance, getting the news in advance, ambushing in advance, and the starting point is 10X. Here, I would like to remind everyone that when looking for answers in any circle, remember not to be blind to belief. Remember to check the last modification time of bloggers’ predictions. Remember to think more when following a big V. Do you dare to believe the big V who just talks about skyrocketing prices and plummeting prices, and predicts the market without any basis or ideas? At least give a few reasons and conditions to support your predictions! Stop treating leeks as a fool.

In fact, there are two perspectives when looking at these things. The first is to look for novelty and interesting points in news events from an entertainment perspective. If it is for this purpose, then the more details, the better, because more details, higher density, more entertainment points, and more interest. The other perspective is a macro perspective, analyzing what trends these events reflect in the industry and even the world, and how these trends relate to you, mainly to guide decision-making. From the latter perspective, the bigger the thing is, the more coarse it should be rather than fine. You should look at it with a telescope. Don't always think about decrypting and hunting for novels. Those details have nothing to do with you. Think about how the current news will be recorded in a high school history textbook 100 years from now, and then imagine what will appear on the next page of the book? This is the really important question. Only by omitting all kinds of trivial details and grasping the overall trend can we identify the pattern called "historical law". Only by identifying such patterns can we help ourselves make choices and decisions. Take the Binance judicial settlement as an example. I read a lot of comments, and most of them provide details, interest, and emotional value. Not many people discuss this matter in a general and trend sense. That being the case, let me share some thoughts on this level. Warning in advance, it will definitely be boring: 1. Crypto/Web3 is equivalent to the discovery of a rich new continent. 2. The first group of explorers were idealists, and the second group were adventurers. After they immigrated to the New World, they quickly became kings of the mountains and established a system that was a mixture of idealism, opportunism, money worship, and plunder. This system lacks order and is full of chaos and jungle laws, but it has also become a hotbed for innovation. This stage can be called the age of exploration. 3. Binance has seized the historical opportunity, established order in chaos, and balanced complex factors such as ideals, innovation, speculation, and hype. It is undoubtedly the king of the adventure stage. 4. But this new continent has not yet produced organizations and power forms that are strong enough to compete with the traditional world. Its original set of passive confrontation methods based on a thin anonymous mechanism are now in vain.Under such circumstances, when its scale grows larger and larger, and even begins to adversely affect the balance of power in the Old Continent, the Old Continent will definitely not be able to sit idly by and ignore it, and will inevitably use its existing strength and means to intervene in the New Continent. This will push the history of the New World into the second stage, which can be called the colonial era. 5. The colonial era is an era of order construction for Web3/Crypto, but this order is not the order that is most in line with the local characteristics of the New World. Each of them combined the characteristics of new technologies and grafted onto the original system of the mother country to form an order in which a variety of colonial systems with different characteristics coexisted and competed with each other. 6. Countries that saw this were advancing the colonial process in different ways. Some countries are more proactive and are willing to go deep into the hinterland, while some countries are more passive and only want to defend their borders. This is essentially what we saw in the Binance judicial settlement. This event also marked the great acceleration of the United States' colonization process in the crypto New World. Also accelerating are Hong Kong, Singapore and other regions. 7. From the perspective of the law of development, the colonial era is definitely not the end. The process of competition between multiple systems will eventually lead to the emergence of a new order. This new order is not only more in line with the characteristics of the new technology itself, but also has outstanding competitive advantages and the ability to compete with other systems, and can have a strong negative impact on the old continent. However, it may still take a long time before the new order is created, established and successful. For quite some time, we need to focus on colonial-era strategies. 8. Binance’s settlement is a helpless move in the short term, but it may not be a bad thing in the medium to long term, because as the king of the exploration era, it successfully survived and entered the colonial era, and its strength did not damage the foundation. It has the opportunity to The new era continues to play an important role. Such good things are rare if you look through history books. 9. In the next ten years, the colonization of the Web3/Crypto world will be the main line of the industry’s story. The industry narrative will undergo fundamental changes, and the most significant innovation and wealth creation opportunities will lie on this main line. This is not to say that the order of the Age of Exploration cannot exist in the form of ruins and reserves, but its importance will gradually decline.

As a discerning trader, you are always faced with choices, first of all, the choice of varieties, and then the choice of price timing. Excellent traders will try their best to maintain strict standards and use the most critical eyes to select varieties and timings. Mediocre and failed traders often have casual standards and are not selective. They would rather kill a thousand by mistake than let one go. In the end, the army will be defeated if the troops are lost. 1. Being picky requires capital (the following content is based on trading experience and basic technical analysis skills) being picky requires capital, and this capital is the trading system you establish. I divide the trading system into three parts: trend determination (average price line of the moving average system), abnormal movement signals (k-line price breakthrough or heavy volume), trend segmentation (top and bottom, auxiliary indicator determination; on the way up or down, you can Drawing on impulsive waves from wave theory). Trend determination: Relying on the moving average system, we can set 200ma as the long-short line, the moving average inflection point as 5ma when it crosses 20ma as the long inflection point, and when the moving average crosses below 20ma as the short inflection point. This determines the direction of the open position. Abnormal movement signal: When a breakthrough K-line appears and the trading volume meets the requirements, we can use it as the opening point or area. It is no joke that trading volume ranks first among the four elements of "volume, price, time and space" in technical analysis. Any transaction without trading volume is not worth trading. Decide whether to open a position here. Trend segmentation: This part is highly subjective and can be judged by assisting technical indicators, such as the divergence of macd. When a turning point begins to appear in the downward trend, we set it to the bottom or top, which determines the intensity of participation. 2. Traders need to work hard to practice basic skills. As the old saying goes, success in any industry requires tens of thousands of hours. The sense of experience comes from long-term trading accumulation, which is why a powerful trader needs more than 10 years of trading experience, and of course there will also be talented players. The accumulation of experience in futures requires scientific and practical training. 1. Be familiar with the rules of the game. The design rules of varieties, margin ratios, price increases and decreases, and even holiday changes are all rules related to trading, leaving no dead ends. Many people have been trading for a long time. They speak clearly and logically, but when asked, they only know a little bit about national affairs. They talk about national affairs and have high ambitions and low intentions. If you really make money, it is not allowed by God.2. Technical analysis is down to the details. The K-line cannot tell you the highest opening and closing price. For example, we have made dozens of categories in 4 categories. In fact, especially for short-term traders, there are about 10 types of daily K-lines that you should focus on: medium-large positive line, medium-long upper shadow, medium-long lower shadow, medium-large negative line, and medium-large spiral line. There are four corresponding categories of time-sharing charts: opening market, middle and front market, middle and back market, and end market. 3. The attributes of varieties are different. Behind each trading variety, there is a group of traders who have been tracking the transactions for a long time. It takes us time to understand the personality and temper. Some of them are not temperamental, and you will lose no matter what you do. Some of them are in line with your personality, and you will be successful no matter what you do. This is very critical. Generally speaking, it would be ideal to start copying multiple varieties only after you are familiar with one variety. For the average person, it would be great to be able to do less than 3 of them. Programmatic exceptions of course. 3. Experience and lessons in trading 1. Emotion is the enemy of subjective trading. Off-site interference includes physical conditions, daily chores and financial pressure, while on-site interference includes making and losing money, losing money-making opportunities, etc. The only way to overcome interference is to strengthen training and adjust your mentality. 2. Execution is the basis for good transactions. Do the second part well and execute the first part. Don't change your mind, see the mountains as they are, and don't act on possible empty promises in the future. 3. Trading is both mental and physical work. A healthy body is more important than anything else. The purpose of making money is to live a better life. Good health itself is the most important, otherwise the meaning of making money will be lost. 4. The better traders are, the more picky they are. Be picky about the trend, not clear or confirm it; be picky about the signals, not confirm any of the factors such as volume, price, time, space, etc.; be picky about the stage, try to stay on the sidelines at the end of the trend, or test positions, Add more trades in the middle of the market to get a quick win. Only a critical eye can choose the best market. Only if you are picky can you find resonance and resonance. What everyone likes is naturally the big market. If you want to be a good trader, you must remember to be a discerning person. The vast majority of failures stem from capital management. 1. Analysis and research will encourage you to enter the market. When we use a certain analysis method to find a buying point or selling point, the successful charts in the past tell us that we can make money by buying here and make big money.Based on this expectation, you will start to act. Buy, buy more. Being right once will make you feel a lot of regret. You see, this analysis method is indeed good. I wish I had bought more at that price. When you encounter a similar "opportunity" next time, you will often have the courage to give it a try. One “little” mistake can send you to rock bottom. 2. Failure makes us aware of risks. It should be said that most speculators have experienced losses. After buying, the price immediately moves in the opposite direction, or after buying, it rises for a while and then falls back. After trading for a period of time, all traders must admit that speculation is a game of probability, and there are winners and losers. The risk of loss makes us understand that we must do appropriate fund management (position management). 3. The analysis system and the risk control system are contradictory. The analysis system is telling you that this is a good opportunity. Fools, don’t miss such a good opportunity. Open a position quickly. The risk control system will tell you, be careful, this is how you lost money last time, so be cautious. There is a balance to be found here. Every trader is an independent individual. There are two good ways to resolve this contradiction: 1. Buffett said that if I have the ability to cross a 1-meter railing, I will look for a 0.5-meter railing everywhere to cross. 2. Soros said to invest less tentatively at the beginning, and then increase your investment when the market does go as you think. Regardless of whether these two people have said the above, we can get the necessary information from them. The first is that each of us has a different psychological quality. The risks you take cannot make you feel uneasy, otherwise you will not be able to judge market opportunities objectively and rationally; secondly, if you think there will be a relatively good market next, then just Start your tentative buying and observe whether the market trend is in line with expectations. It will be more scientific and rational to invest more. 4. You must convince yourself to control your position 1. Reduce the interference of emotions on subjective judgment. 2. Safety is the secret to longevity. 3. Stability is the darling of wealth. 4. Traders must bring enough ammunition when going to the battlefield. 5. Don’t kill them all, leave room for everything. 5. Loss and profit are information fed back by the system. Trading must establish a reasonable and correct system.After the system is generated, it will bloom when the market blooms and bear fruit when it blooms. Everything is determined by the market. Profit cannot be equated with correctness, and loss and error cannot be confused together, because profit is the reward of risk, and loss is the reminder of risk. As long as your system is reasonable, it will give you profit within the trend, and at the turning point , bear the loss. Transactions without losses and costs simply do not exist. This is the fundamental reason for controlling positions.

Today let’s talk about the nine realms of trading in my mind. The first level of trading is what I call the "sponge". This stage is characterized by frantically absorbing and learning various theories, knowledge, and principles. From Dow Theory to Gann Theory, from K-line charts to curve charts, from financial analysis to industry theory, from macro theory to trading psychology. In short, anything related to trading is absorbed like crazy. This is the only way for everyone to grow in investment, and it is the process of laying the foundation. The more solid this foundation is, the further we can go in the future. It is not difficult to absorb like a sponge, but the difficulty lies in removing the coarse material and extracting the essence. The difficulty lies in digesting and integrating it. However, many people unfortunately stay in the absorption stage. Be proud of how many truths you know and be complacent about it. At this stage, we are still a long way from achieving stable profits by Brother Monkey's somersault cloud. Well, it's a thousand miles away. The second level of trading is what I call the "lost one". The characteristics of this stage are: Dear, I understand the truth, but why doesn’t it make money? The characteristics of human's complex physiological system are doomed to one thing, that is, there is a long loop between understanding a certain principle and executing it. This circuit may be disturbed and damaged by many things. It's like the Red Army's 25,000-mile Long March, during which they had to climb snow-capped mountains and cross grasslands, endure cold and hunger, and deal with the enemy in various ways, narrowly escaping death. The cycle from understanding the truth to executing it is as difficult as the 25,000-mile Long March. Because on this road you will encounter an extremely powerful enemy, which is your emotions. Such as greed and fear. The power of emotions is so great that it is 100 times more powerful than your rational power. This is not the scariest thing. The scariest thing is that this emotion is also a part of you. No matter how powerful the external enemy is, it is not scary. But your emotions are not an external enemy. They have the same origin as you. They are a part of you. They are you. For example, when it's time to stop the loss, you just can't bear to stop the loss, and you just hesitate to make a move. This part that you can’t let go of is also a part of you. It is not an external enemy, but is within your flesh and blood. No matter how powerful a person is, can he defeat himself?That’s why the ancients said it is so difficult to unite knowledge and action. The difficulty lies here. Many people get lost in this long loop throughout their lives. The third level of trading is what I call "ruthless". Since emotions always interfere with us, let's allow ourselves to become ruthless. The opening chapter of the Sunflower Collection says that if you want to practice magical skills, you wield a sword from the palace, which is what it means. When making decisions, try not to let emotions get involved. For example, when you stop loss, practice being ruthless at the moment when you lift the knife and drop it. In fact, at this stage, we have already entered into the practice of “good and protective thoughts” mentioned in the Diamond Sutra. Just focus on the present and not be bothered by the success or failure of past transactions. Only then can you be "ruthless". This stage is usually the beginning of profitability. The fourth level of trading is what I call the "Three Good Students". The characteristic of this stage is discipline, especially discipline. The ruthless stage shows that you still have emotions, but you just try hard and forcefully to block them out. But things become simpler when you simply exercise trading discipline. You will develop a habit of making a trading plan for the next day every day. The next day, no matter what happens, you will follow this plan. No matter what the cost, you are willing to act with discipline. For example, your trading plan yesterday stated that if the price of Bitcoin falls to $26,000, you will stop your loss. As a result, the lowest intraday price today dropped to $26,000, and you stopped the loss as planned. Then the price went all the way up to $26,500. In terms of trading results, today's operation was terrible. But from the perspective of the trading process, your execution of the trading plan was perfect. At this stage, you begin to know how to treat trading results and trading processes separately. This is a very important step. The correct trading process is 100 times more important than the correct trading result. Because the results of certain transactions are correct in the short term, they will have minimal impact on your investment career in the long run. The correctness of the trading process proves that you have developed good habits. This is the long-term important thing that can accompany you for a lifetime. In fact, the scariest thing is that you use the wrong process to get the right results.For example, in the example just now, the plan stated that the stop loss would be $26,000, but when the price reached it, you hesitated and did not execute it, and as a result, the price went up later. On the surface it looks like you are making a profit, but this is the most dangerous part. Because you were "rewarded" by going against your trading plan. Then next time you will further deviate from your trading plan. A thousand-mile dike is destroyed by an anthill, and eventually your entire trading system will collapse. The fifth level of trading is what I call "internalization". You don’t even need to write a trading plan every day (for 99.99% of people, it is still strongly recommended that you write one). Because of all the discipline and ironclad execution, these things have been internalized. Just like a skilled driver, he has internalized when to step on the accelerator and when to brake. A trading system has been formed in your heart, and you subconsciously execute transactions strictly in accordance with this system. At this time, you are actually already a quantitative trader. Or call it a semi-quantitative trader. Many masters of subjective trading are actually in this realm. The sixth level of trading is what I call "doing nothing is better than doing something." After your system has been formed, you find that you can no longer even look at the market. You can write your trading strategy into computer code and let the computer help you read the market and execute orders. As a monitor, you can just take a look once in a while. At this stage, you find that the less you do, the more you earn. Because your inaction is the prerequisite for ensuring that the system can exert its power. Once you do too much and interfere too much with the system, it will have negative effects. At this stage, you need to control your desire to subjectively interfere with the system. The seventh level of trading is what I call the "mathematician". Coming here means that you have already mastered quantitative trading and have your own strategies, models and practical practices. As a quantitative trader, the most important first step is to make a beautiful backtest capital curve. When you have a strategic idea, you need to write it into computer code, and then what? Instead of starting the real offer immediately, we put it into the real historical market data for backtesting. For example, if you come up with a strategy, buy when the 5-day moving average crosses the 20-day moving average, and sell when the 5-day moving average crosses below the 20-day moving average.You write the computer code, and then you do historical backtesting on the five-year daily data of the Shanghai Composite Index from 2010 to 2015 to see if this strategy can make money. It turns out that the effect is not as good as you thought. Then you will start to do something called parameter optimization. Since the effect of the 5-day moving average and the 20-day moving average is not good enough, how about switching to the 10-day moving average and the 30-day moving average? You will find that there are many parameters to choose from. At this time, the benefits of the computer come out. It can help you complete a large number of calculations and find the optimal solution among a large number of parameters. This process is called fitting in mathematics. In essence, it is to use a lot of calculations to find the parameters that can best adapt to the historical market. Then you can get some nice simulated money curves. This process is the only way for all quantitative traders, and it is also a very important stage. Because the better you can fit the historical market and the more beautiful the capital curve you make, it shows that your basic skills are very solid and your understanding of the market is very deep. It shows that you have the ability to optimize and combine various technical indicators. These abilities are extremely valuable. The eighth level of trading is what I call "trying not to be a good tailor." In the previous stage of the fitting process, you may use a large number of filters, a large number of conditions, etc. to make the strategy perform well enough in the historical market. But suddenly one day you discover a problem. The more parameters of the strategy are used, the worse the strategy may be in adapting to future market conditions. It's like a tailor making clothes. According to your current figure, he carefully measured a lot of data, and then made clothes that fit very well. You look very beautiful in them. But the problem is that clothes that fit better at this moment mean less adaptable to your possible changes in body shape in the future. If you suddenly gain weight or lose weight in the future, you will no longer be able to wear this dress. The future of the foreign exchange market is uncertain, and each variety is likely to become fatter or thinner one day in the future. If you make a garment fit too well, it will be less adaptable in the future. When you realize this, you enter a new phase, which I call subtraction.You'd rather have the clothes look less fitting and look less good in the moment. You want to make it more adaptable to future changes. This process is very painful. Just imagine how painful it is for an excellent tailor to have him take the initiative to make clothes that don't fit that well. Similarly, one of your strategies can produce a very beautiful capital curve with stable income and small backtesting in the historical market. At this time, you have to make subtractions, which may make the capital curve bumpy and not so beautiful. When you reach this state, you will understand this pain. The ninth level of trading is what I call "the greatest simplicity". "The most important thing is to choose," this sentence comes from the "Inscription of Confidence" written by Seng Can, the third ancestor of Zen Buddhism. I like this sentence very much. After you have tried thousands of methods, pretended to be sophisticated, and used countless Nobel equations, you finally found that the world is actually simple. What can remain effective for a long time in the long river of time are simple and simple things. Please take your time to understand this. Let’s review the nine realms of trading again. You will definitely feel that the road to trading is really not easy. It's like an army crossing a single-plank bridge. Some trading masters finally came out, and they experienced several bankruptcies and ups and downs in life before they finally came to their enlightenment. You know the taste of it, whether it is warm or cold.

Written before: Any downward breakthrough in the bull market may be a washout; until the trend changes! Any upward breakthrough in the short market may be a pump-and-dump; until the trend changes! Only with a perfect form can a trend with larger space unfold! The so-called form is essentially a process in which bulls and bears repeatedly compete for a band within a certain range. Before the end of this process, there is no winner or loser in the battle between bulls and bears, but as it comes to an end, the winner becomes clearer. Once the winner is determined, The trend inevitably unfolds. From this, it is not difficult for us to draw the following conclusions: First, there is a pattern first and then a trend. Without a pattern, there is no trend. There is no one-sided trend from beginning to end. It is very important to understand this point. Follow this thinking to observe and judge the period. Market opportunities and their timing are extremely important. Second, forms of great value are not easy to form and break through. The reason why they are so valuable is because both the bulls and the bears have invested a lot of troops and fought for a long time. No one is willing to give in easily, so it is not easy to break through. But once a breakthrough is made, the value It is very important, because the subsequent trend movement is astonishing, it is the general trend, and it is beyond human control. Third, once a breakthrough occurs, it marks the victory of one party, and the defeat of the other party is inevitable. This means that a trend will follow the pattern. Large patterns will lead to big trends, small forms will lead to small trends, and medium forms will lead to medium trends. Once the trend unfolds, It is not easy to end until the energy is released and new forms take shape. Fourth, the trend originates from the form, the trend is generated by the form, the form is the mother of the trend, the form is the foundation of the trend, and the form is the prerequisite for the generation and existence of the trend. Therefore, we have no doubt about the starting point of thinking for trend research and observation. It is a form, not a trend, let alone a local price performance. Therefore, our trading solution should also start from the form, based on the form, and before the trend unfolds, we can foresee the direction, level, strength and weakness of the trend from the form. and other core information. In other words, the direction, size, strength, etc. of the trend have been determined before the trend is formed and unfolded. Therefore, once the pattern breaks through, there is no need to care and re-judge the direction, size, and strength of the trend.It is useless to care, and re-examination will not produce new correct information and further beneficial results. On the contrary, re-examination shows that you have no confidence in the trend. How to hold or open a position without confidence? Many traders fail because their starting point of thinking is wrong. They like to decide buying and selling based on the local performance of the trend. If the local performance is good, they will buy, otherwise they will sell. But we believe that if the starting point of thinking is wrong, it is impossible to draw the correct conclusion. The correct trading decision has been determined at the beginning of the trend. Decision-making during the trend development process is very passive, because the winning main force has already made a certain profit, and he can withstand price oscillations due to floating profits. And you can still maintain a good mentality, but you can't, because you don't have the advantage of floating profits. Once you encounter a oscillation, your mentality cannot be immune to the impact. Once the stop loss level is hit, it is impossible to stop the loss. In addition, because the band amplitude within the pattern is too small, many investors repeatedly make narrow profits. Therefore, even if the pattern breaks through, they will not have confidence in the trend. Restricted by this psychological shadow, they will leave the market as soon as they encounter resistance. When encountering a larger rebound or pullback, you will doubt the trend and re-examine the argument. The result will always be a small-band light position operation, making a small amount of money and then running away. However, once the rhythm is not set correctly, not only will there be no profit, but also a small loss, and in the end, overall I still made money but lost money. Fifth, the trend will only progress rapidly after the form breaks through. Without breakthrough, there will be no rapid progress. Without rapid progress, the outcome will still be unpredictable. Without rapid progress, it will not be easy to hold a position, and it will not be easy to increase a position. Confidence and evidence. But sometimes, after the pattern breaks through, it does not start smoothly immediately, but there will be a retest or consolidation for one or several days. At this time, it is most likely to lose the position or have no confidence in adding a position after dawn; then rapid progress occurs. , the price once again significantly deviated from the pattern, but investors pursued it with confidence. As a result, once the intraday retracement occurred, positions became passive again, resulting in continuous rushing in and out of the trend. In the end, even if there was a pattern and trend, Didn't make any money either. In short, the huge impact of patterns on investors' trading mentality is not only reflected in the patterns, but also often reflected in the trends after the patterns break through. Only by overcoming this mentality restriction can you truly enter pattern trading and follow the trend traders. of ranks.After the pattern breaks through, holding the position until the stop loss level is reached is the only correct choice for pattern trading. It is important to remember that opportunities are waiting for them, and profits are made by covering up, not grabbing. Trading by grabbing will not succeed. , if you have no confidence in the trend, there is no use rushing in and rushing out. On the other hand, if you have confidence in the trend, there is no need to rush in and rush out. It should be said that confidence and trading techniques have been determined before the pattern breaks through. Rushing in and out has serious consequences. Not only does it always put your position mentality in an unstable state, no matter whether it is profit or loss, but it also always makes you annoyed for wasting the trend. What if there is no form? As we have said before, there is no one-sided trend from beginning to end. A one-day reversal without a head pattern or a bottom pattern only exists in a state of extreme price imbalance. Even if it is a one-day reversal, there is just no head. It is just a pattern or a bottom pattern, but it does not mean that it does not have a relay pattern. Single-day reversals without even relay patterns are rare. It can be seen from this that we should be careful about single-day reversals, even if there are conditions for a single-day reversal. It's not difficult to judge. Therefore, we believe that if there is no condition for a one-day reversal and there is no reversal pattern, then please continue to abide by the original trend and continue to hold positions until the trend accelerates. There is no trend that does not accelerate! There is no form that does not break through. The relationship between supply and demand is always difficult to balance. Balance does not exist. Imbalance is the norm. Therefore, there is no form that will not break through. The breakthrough of the form is only a matter of time. Knowing and fully understanding and accepting the relationship between patterns and trends and their laws does not mean that you can use this to make money, because there is a lot of interference. The main manifestations are: the band amplitude within the pattern is too small, and the profit will be too narrow. It deeply affects your profit expectations and position mentality, including after the pattern breaks through, and the trend is no exception. You always hear a lot of seriously bad news in the bottom pattern area, and you always hear a lot of seriously bullish news in the top area. This will inevitably affect your confidence in the pattern and its subsequent trend, including your confidence in holding positions. The development of a trend, especially in the early stages, is not always smooth sailing, and the mentality of holding a position will always be tested to a certain extent.Some forms are quite difficult to grasp. For example, the double bottom form is often determined to be a double bottom only after the fact, and cannot be completely determined beforehand. The pattern before and after the breakthrough conflicts with certain technical indicators or analysis methods. Do you still have confidence in the pattern and its breakthrough? Can the mentality of holding a position remain unaffected? Although there are not many false breakthroughs in the form, once they occur, there is not much difference between the initial retest and the normal retest after the breakthrough, so it is quite difficult to deal with it. If you handle it wrong one or more times, resulting in losses or lost opportunities, you Are you still confident about the pattern and its breakthrough? When the pattern contradicts certain authoritative judgments, do you still have confidence and persistence in the pattern and its breakthrough? When the pattern breaks through, the rise and fall are already large. Do you dare to chase it? If you dare to chase, aren't you afraid that it will be a false breakthrough? After the pattern breaks through, if the pullback is strong, do you still believe that the breakthrough is effective? When you miss the opportunity to open a position, do you give up or intervene forcefully? Some shapes are very hidden and not very symmetrical. Can you spot them in time? Such situations are not uncommon, nor are they all. They often occur in mixed situations, making it more difficult to judge and hold positions. Are you still confident in the pattern and its breakthrough? These are factors that cannot be ignored that trouble pattern trading.

The trader's personality determines the trading style and also determines the appropriate time period to be used; many traders have poor performance because they did not choose the right time period for trading. Most beginners want to start making money quickly, so they usually do it in various Try trading on various time periods, including 1 minute and 5 minutes; but not everyone is suitable for ultra-short-term trading.

After a long period of exploration, we feel that we are most suitable for trading on the 1-hour chart. This time period is relatively long, but not too long; there are not many trading signals, but not too few. This gives us more Spend more time analyzing market trends.

I have been trading for 8 years. I am not a financial tycoon in the market. I just bought a house and a car and achieved financial freedom. Someone asks me what is the secret to making money. I usually say that there is no secret to trading. It depends on execution. My gains are just the basic returns brought by the correct execution of trading signals.

In trading, no matter how good the technical system is, there will be losses. I have also encountered continuous losses. I can only say that a normal person cannot be indifferent to losses.

I often say that experience determines emotions, and emotions determine behavior. So I could only force myself to accept this kind of loss, and repeatedly warned myself to implement my trading system resolutely, and not to be clever and close positions in advance to lock in profits, otherwise I will definitely miss the opportunity to make substantial profits later.

1. Believe in the power of trends

Once a trend in the market is formed, any unexpected situation cannot change the trend immediately. The trend can ensure that you make profits without making fatal mistakes. When the market digests the unexpected situation, the trend will still return to the original path. Believe in the power of trends and firmly believe that trends lead us to trade.

2. Find the right trends

"An upward trend means a correction without breaking the previous low, and a downward trend means a rise without breaking the previous high." This sentence is always true. Trend is such a feature, and it is also the most obvious feature, no matter on any period chart.