Many people say that they need to have a trading system, but most people don’t even know what a trading system is, so they keep investing based on their feelings, chasing ups and downs, and are unable to attribute the results correctly.
Today, Sister Bi will give you a detailed analysis. To prevent losing contact, fans should pay attention to @BijieTradingDiary3
A complete trading system is composed of the following three elements, which I call the Trinity.
1. Timing
2. Position management
3. Risk Control
First of all, the timing.
The timing includes where to enter and where to sell. For any investment, the timing of exit must be calculated synchronously before making a move.
Regarding the#cryptocurrencycircle# and the details of the techniques of when to enter and exit the market for long-term and short-term investment, I will break it down for you in the following article. You just need to remember that in judging the timing, you must ensure one principle - when you lose, you will have almost no loss, and when you make money, you will make a big profit.
Let's talk about position management.
Position management includes how much to buy and how much to sell each time.
Many people want to guess the entire band by just buying and selling. This idea itself is wrong because it is an extremely low probability event.
Therefore, we should not be too conservative, too scattered, or too radical and all in at every turn. We should only do it in batches each time.
Finally, there is risk management.
Investment is never 100% certain, and accidents can happen in life, so you need to make plans in advance for various possible situations.
For example, what if the price drops after you buy it, or continues to rise after you sell it?
Before making any trading decision every time, you must think clearly about these three aspects before making a decision. Otherwise, even if you make a profit, it is due to luck and will eventually be returned to the market in some way.
I wish everyone can have their own stable profit system and make money based on their own strength!
