It turns out that it is so easy to make money by trading, and it only takes 3 steps!
Step 1: Look at the trend first
For the state of a market, there are only three results for the big market: rising, sideways, and falling. What is a big market? Look at the cycle chart of more than 4 hours. For example, 4 hours, daily lines, and weekly lines (my personal habit is to look at 4 hours). Go long when it rises, go short when it falls, and don’t make orders when it goes sideways. If the current market is sideways, you don’t need to go down. Just do what you should 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 one by one like a bouncing ball, and what we have to do is to enter the market at the position where it takes off and leave the market at the next landing point. How to find the precise step becomes the key, that is, the key position we are talking about, 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 end stage? Does the target position meet your profit and loss ratio? We don't do business that loses money. If the profit-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 have to go to the small cycle to find trading signals to enter the market. Everyone is good at different tactics. Some people 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
Throughly, 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!