1. Believe in the power of trends

Once a trend is formed in the market, no unexpected situation can change the trend immediately. The trend can ensure that you can make profits without making fatal mistakes. When the market digests the unexpected situation, the trend will still return to the original path. Believe in the power of the trend and believe that the trend leads us to trade.

2. Find the right trend

"An upward trend is a callback that does not break the previous low, and a downward trend is an upward trend that does not break the previous high." This sentence is always true. The trend is such a characteristic, and it is also the most obvious characteristic, no matter on any cycle chart.

When you speculate on the market, you might as well take a serious look at Dow Theory, Wave Theory, etc., learn the trading rules, lighten your capital position, or patiently find a more favorable opening price. After a period of time, you will find that your ability has improved and you can make more money.

3. Learn to trade across cycles

For an excellent trader, the candlestick chart is always the most powerful technical indicator. Once some large-cycle technical graphics are formed, the trend must be completed, and the main force cannot change it. If the weekly line forms an upward breakout of the ascending triangle, then no matter how the daily line tosses, it will eventually serve the weekly line. As long as you make the right judgment on the large cycle, you can call the shots on the short cycle. And the larger the cycle, the more reliable the graphics formed.

The difficulty of cross-cycle is that you cannot confirm the current trend. Only the K-line combination in the large cycle is effective, and those cycle graphics composed of only three or four K-lines often cannot serve as the basis for operation.

4. Be aware of market traps

If the market wants to attract investors to participate, there will be a secondary retracement trend. For those who are familiar with the market, they often choose to operate with a light position to avoid traps. But if you are not familiar with the market, you will be confused by this trend and choose to operate in the opposite direction or open a large position.

Another situation is the sideways trend, which is often a signal that a bigger market is about to appear. Before the market chooses the real direction of the sideways trend, there will often be a false breakthrough in the opposite direction. If you are confused by it and open a position here, you will fall into the quagmire of losses.

The rules of the game in the trading market determine that any market situation is inseparable from traps, and no technical indicator can tell you what the future will be like. But traps can tell you when you can enter the market and when you can operate.

5. Develop a trading strategy that suits you

First of all, you must determine your own trading type and find your own trading preferences. You cannot just follow the crowd and be led by the market. Secondly, you must determine your own trading direction, whether it is short-term trading or long-term trading, fundamental analysis or technical analysis, etc. Thirdly, you must manage your funds well, learn to use your funds reasonably, and build positions reasonably. Finally, you must do a good job of risk management and set a stop loss point. Stop loss is the final bottom line and you must stop loss to be safe!

6. Learn to set stop loss and take profit points

If you have a very accurate judgment of the market, you can increase the stop loss. But the most important thing is to control your own hands and never quit until the stop loss point is reached. There is only one standard for stop profit, which is to be larger than your stop loss. If you only hold the mentality of making money, you will never make money!

Those who make money in the market are those who know how to roll over, lock in profits, and set stop-loss and take-profit positions reasonably. Those who lose money always think that they can buy at the lowest point and sell at the highest point, and keep struggling in the market.

7. Stick to the trading rules

Since you have joined this market, you should be fearless and not overly complicated. If you follow some simple rules and do it in a disciplined way, you will definitely gain something. Many masters in history have succeeded in this way. You can make money in any way, but you should avoid changing your mind frequently. If you have too much knowledge, I'm sorry, you will definitely be eliminated by this market.

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