Technical analysis and risk control strategy

When conducting technical analysis, I pay special attention to the specific position of the short-term K-line. The position of the K-line determines my offensive and defensive strategies. For example, when the K-line approaches an important support or resistance level, I will be more vigilant and ready to take corresponding actions.

Long and short judgment:

I will decide whether to go long or short based on the comparison of long and short forces in the market. If the long side is dominant, I tend to go long; otherwise, I consider going short. Before each transaction, I will set the stop profit and stop loss points to control the risk.

Long strategy:

Even if the market has experienced a large increase, I may not go short immediately. If the risk of chasing high is acceptable compared to the potential profit after calculation, then this chase is worth it. I will carefully evaluate the ratio of risk and reward to ensure that every step is based on evidence.

Short strategy:

When I am bearish on the market, I may not go short immediately. If I already hold a profitable long order and the floating profit continues to expand, I will hedge by opening more shorts as the price rises to lock in part of the profit. In this case, strict stop loss is usually not set for newly opened short orders, but it is flexibly adjusted according to market changes.

Single direction strategy:

When my position is only in one direction (either all long orders or all short orders), I will pay more attention to risk management and strictly set the take profit and stop loss points. Doing so can effectively control risks and avoid major losses caused by market reversals.