Big Cycle, Key Levels, Profit and Loss Ratio
1. Big Cycle: Determine the main trend through weekly charts, whether it is up, down, or in a range. For anything in a range, don’t pay attention to it.
2. Key Levels: Breaking through the high and low points of a range is considered key levels. Start building positions in batches, with the principle being to never add to positions when in a loss.
3. Profit and Loss Ratio: Ensure each trade has at least a 1:2 profit to loss ratio, or even a greater ratio.
Every operation is carried out this way when building positions; a trading method this simple.
It requires unity of knowledge and action; don’t be dumbfounded when it’s right in front of you.
An important point: Do not add to positions when at a loss.