Retail investors around the world have a common problem: they hold on to their positions when they lose money, and sell them as soon as they turn a profit. They neither look at the trend nor the trading volume, but only focus on the small profit in their accounts. The correct approach is to do the opposite. Hold on to your profits, and stop losses when you lose a little and exceed your principal by 5%. The stop-profit and stop-loss principle I set is: when the profit reaches 15%, stop profit when it falls back to 10%, and continue to hold if it continues to rise; operate 100 times, even if the winning rate is only 50%, the profit can reach 300% according to this principle. The difficulty lies in overcoming greed and fear, integrating knowledge and action, and remembering that the trend is king and following the trend.
To judge the trend, you can look at the moving average, which divides long and short positions. Upward is long, and downward is short. For short-term trading, look at the daily moving average, and follow up with a large volume breakthrough; for medium and long-term trading, use the weekly moving average as the standard, break through to enter, and break through to leave. If the market is not good, go short. Don't buy the bottom easily when the currency market is trending downward. Don't fantasize about making profits against the market. When speculating in currency, you must seize the high probability and give up the low probability. The courage to admit mistakes and stop losses in time are the foundation of life, which is far more important than making profits for a while.
For short-term trading, you should pay attention to the 15-minute - 30-minute - 1-hour K-line chart, find the entry and exit points of the day based on KDJ, and use OBV to judge the main intention. Washing the plate and shrinking the volume, shipping and increasing the volume, strong coins encounter risk announcements, short-term trading is mostly shrinking and shaking the warehouse, and there may be new highs in the future.
