Hello everyone, I am Yan Ge!
Many friends come to ask me after losing money in trading: "Why do I always lose? Is there a simple, easy-to-understand trading method that can be directly applied?" Today, I will summarize a complete trading operation guide from my experience, focusing on psychological building, strategy execution, and capital management, to help you get on the path to profitability.
1. Start with psychological building: Overcome human weaknesses
How to overcome human nature?
Set rules: Before each trade, clearly define the entry point, profit target, and stop-loss point, and strictly adhere to them.
Control emotions: Avoid emotional decision-making, follow the plan, and not be swayed by short-term fluctuations.
Develop a review habit: Regularly review trades, analyze the reasons for success and failure, and gradually optimize strategies.
2. Strategy execution: A complete operation from entry to exit
Strategy 1: Trend confirmation, go with the flow
Trend is the soul of trading, do not go against the market. Here are simple methods to judge the trend:
Technical indicators:
Moving average breakout: Price stabilizes above the 200-day moving average, and accompanied by increased trading volume, is a signal of an upward trend.
Bollinger Bands: Price breaking above the upper Bollinger Band indicates that the market may enter a strong trend.
Fundamental events:
Events such as halving cycles and favorable policies can drive the market into a new trend.
Strategy 2: Build positions in batches to reduce risk
Don't put all your funds in at once; building positions in batches can reduce the risk of single-decision making.
First batch: Confirm the trend and use 20%-30% of your position to test entry.
Second batch: If the market continues to rise and breaks through key resistance, add another 30%-40% to the position.
Third batch: After the market steadily rises, gradually add the remaining funds.
Strategy 3: Strictly take profit and stop-loss to lock in profits
Stop-loss setting: Set the stop-loss 5%-10% below key support levels to ensure losses are controllable.
Take profit in batches:
When the profit target of 50% is reached, sell part to lock in profits.
When the target of 100% is reached, close all positions to avoid profit giving back.
Trailing stop-loss: As the price rises, dynamically adjust the stop-loss level to ensure profits are not given back.
3. Capital management: Protecting the principal is protecting the future
No matter how excellent the strategy is, inadequate capital management will lead to uncontrollable losses. Here are the core methods of capital management:
Single trade risk control:
Each trade should not exceed 10% of total assets.
For example, if the total capital is $10,000, the maximum investment per trade is $1,000.
Reduce leverage:
Use high leverage to magnify profits when capital is small; reduce leverage and minimize volatility risk as capital scales up.
Gradually build positions: Avoid heavy positions all at once, enter in batches, and adjust flexibly.
4. Operation case: The complete trading process
Case: Assuming the BTC price breaks through key resistance from $20,000
Trend confirmation:
Fundamentals: The halving cycle leads to increased miner costs, driving the market into a bull market.
Technical analysis: Price breaks through the 200-day moving average, trading volume increases, and the upper Bollinger Band is breached.
Build positions in batches:
Step 1: Test the waters at $20,000 with 20% of your position.
Step 2: Once the price breaks through the $22,000 resistance, add 30% more to your position.
Step 3: Once the price breaks through $25,000, add the remaining funds.
Take profit and stop-loss:
Set the stop-loss at $19,000 (previous support level).
Take profit: When the price reaches $30,000, lock in profits in batches and eventually close the position.
5. Mindset and summary: Trading is a form of practice
Trading is not a shortcut to get rich overnight, but a long-term psychological practice.
Learn to wait: Don't rush to trade when there is no clear trend, patiently wait for high-probability opportunities.
Embrace failure: Losses are part of trading; the important thing is to learn from them and continuously optimize.
Stick to discipline: Regardless of how tempting the market is, strictly follow trading rules.
Summary: Yan Ge's three essentials of trading
Trend is king: Capture major market movements, stay away from choppy markets.
Strict risk control: Use capital management to protect the principal and lock in profits.
Stable mindset: Calmly face volatility and maintain long-term thinking.
I am Yan Ge, willing to grow together with you in the market. If you find this article helpful, don't forget to like and follow to support Yan Ge!
This article only represents personal opinions and does not constitute any investment advice.
