The common problem of retail investors all over the world is that they hold on to their stocks when they lose money, and sell them immediately when they turn a profit. They do not look at the trend or the trading volume, but only look at the account profit. The profit is limited, so they need to do the opposite. They hold on to their stocks when they make a profit, and sell them when they lose a little. The final result is an infinite loss.
My stop-profit and stop-loss + principle is to stop profit when the profit drops to 15%, and continue to hold if the profit continues to rise, so that the profit will run. If the stock falls after buying, the loss will exceed 5% of the principal, and then stop loss. If you can guarantee a 10% profit stop and a 5% stop loss each time, then do it 100 times, so even if your winning rate is only 50%, your profit will reach 300%. Is it difficult? What is difficult is human greed and fear. When knowing and doing, you must remember that the trend is king and follow the trend.
Once a trend is formed, you don't need to analyze it much, you must follow it, follow the funds, don't guess, don't predict, don't assume. If you don't know how to judge the trend, you can look at the moving average. The so-called moving average is to divide the market into long and short positions. Long positions are upward and short positions are downward. For short-term trends, you can look at the daily moving average. If the volume breaks through, you can follow up. For medium and long-term trends, you can look at the weekly moving average. If the volume breaks through, you can enter, and if it breaks, you can exit. Going with the trend means not to go against the trend. If the market is not good, you must be short. If the trend of the currency is downward, don't easily buy the bottom. Don't fantasize that you can buy a currency that rises against the market, and don't fantasize that you will rebound after you buy it. The probability of this situation is too low. The core of currency speculation is to only do high-probability events and give up low-probability events. The courage to admit mistakes and the ability to control losses in time are the foundation of your survival in the market, and its importance is far greater than not being able to make a profit today. No matter what method you use, it is enough for you to master one. You must use this method precisely, absolutely, and thoroughly.
When doing short-term trading, you must look at the K-line chart of 15 minutes, 30 minutes, and 1 hour. According to the KDJ indicator, you can find the entry and exit points of the day, and according to the OBV indicator, you can clearly judge the intention of the main force. The most fundamental difference between washing and shipping is the reduction and increase of volume. For coins that are strongly attacking, if there is a risk warning announcement, the short-term can be understood as "just a reduction in volume and shock, at least there is a new high to be expected."
