Here are some secrets and suggestions from trading experts:
1. Trend is king, go with the trend: Once a trend is formed, no need for extensive analysis, just follow it, follow the money, do not speculate or predict, do not make assumptions. If you cannot judge the trend, look at the moving averages; the so-called moving averages divide the market into bullish and bearish.
2. Profit-taking and stop-loss principles: Take profit at 15%, if profit drops to 10%, take profit. If it continues to rise, hold on and let the profits run. If it drops after buying, stop loss if the loss exceeds 5% of the principal. If you can ensure a profit-taking rate of 10% and a stop-loss rate of 5% each time, then after 100 operations, even if your win rate is only 50%, your returns will reach 300%.
3. Counter-trend operations: A common problem among retail investors worldwide is holding onto losses, and as soon as they turn slightly profitable, they sell immediately. Need to operate in reverse: hold onto profits, and cut losses at the slightest dip.
4. KDJ indicator: The KDJ indicator, also known as the stochastic indicator, is a practical technical analysis tool. The K line is a quick confirmation line, the D line is a slow main line, and the J line is a direction-sensitive line. When the K value gradually exceeds the D value, showing that the K line crosses the D line from below on the chart, it indicates that the current trend is upward. Therefore, when the K line breaks above the D line on the chart, it signals a buy.
5. OBV indicator: The OBV line provides a standard display for determining the second peak of a double top. When the stock price falls from the first peak of the double top and rises again, if the OBV line can rise in sync with the stock price trend and there is a price-volume match, a sustained bullish market may emerge with higher peaks. Conversely, when the stock price rises again but the OBV line fails to sync and shows a decline, a second peak may form, completing the double top pattern, leading to a reversal and price drop.
6. Consistency trading principle: The establishment of a trading system must follow the principle of consistency, with fixed time cycles, fixed loss ratios, and simple and clear indicator references to ensure unique trading signals.
7. Capital management and emotional control: The most important thing is capital management and emotional control. Strategies are variable, while emotions and capital management need personal refinement.
8. Box breakout trading method: If an error occurs, you can stop loss in time, and the loss is often not large. Capture the moment when the dealer's washing plate ends and intervene to obtain the fastest investment returns.
These secrets and suggestions cover various aspects such as trend analysis, profit-taking and stop-loss, technical indicator application, trading mentality, and capital management.