Four stages of trading - the road to stable profits

The third stage

Understand that trading is stop loss. Making money is the simplest thing. When you encounter a trend, just leave it there and don't move. You don't need to operate blindly, but defense is always needed (depending on the trading level, mine is 1 point level). The problem at this time is that although you can avoid big losses and make big money at the same time, it is in exchange for frequent use of small stop losses. For example, narrow range shocks are all false breakthroughs, which will constantly stop losses, consume the principal, and fall into self-doubt. When you want to adapt to the market by conducting narrow long and short two-way transactions according to the shock market, suddenly a big trend will directly exit, because according to the shock method, you will frequently stop profit and then reverse. This stage is close to stable profit, but it is just a step away. This step is to avoid shocks, only do trend markets, one-way transactions, and at the same time amplify the trading cycle to filter out invalid fluctuations.

Before, I was intraday ultra-short-term, long and short two-way transactions. This is the most difficult to achieve stable profit. It may be possible for a period of time, but it is impossible in the long run, because only a small amount of funds can affect short-term fluctuations. There are too many variables. Too much noise will not only eat up profits but also destroy the trading system. Even if you can achieve stable profits with noise, it is hard-earned money. If you magnify the same level period, you will make more money. If you want to seize the profit of each fluctuation, you will make a lot of money when the trend cooperates. You can make twice as much in one day, which is exaggerated. When the trend does not cooperate, continuous stop loss plus handling fees will also have a retracement of 30-50 points.

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