In trading, remember not to take risks by chasing left-side orders; the key is to steadily follow the right-side trend. When operating, prefer higher time frame candlestick charts; larger time frames reduce fluctuations and help with trend-following operations.
Before trading, first look at the four-hour and daily charts to determine the major trend. If both indicate a bullish trend, focus on long positions and treat short positions as supplementary, controlling the risk-reward ratio. Then use the one-hour chart to find breakout points, set alarms, and allocate positions according to the long-short ratio, boldly increasing positions during bullish breakouts.
Regarding stop-loss, in the case of false breakouts where the signal is invalid, set stop-losses using the 30-minute and one-hour candlesticks. If the 30-minute chart shows a loss of 30%, and the one-hour chart shows a total loss, then manage accordingly. The risk-reward ratio is more important than the win rate; small stop-losses control losses, and stop-loss discipline must be strict.
For counter-trend positions, such as short positions, operate cautiously, entering only when it aligns with breakout logic. Take profits at 6 points to close half, and at 8 points to close all, prioritizing safety. Stop-losses should follow the same principle: keep positions light and ensure painless stop-losses.
For taking profits, with large positions in a major uptrend, take 10% profit to close half first, and for the remaining position, close at turning points on the 30-minute and one-hour charts. Close 15% and 30% at turning points, and if no turning point occurs, hold the position to avoid misjudging market sentiment and missing out on significant profits. Trading requires a steady mindset, controlling the risk-reward ratio.
Even experts, like those who profit tens of thousands of times, follow this principle, but pay more attention to short-term trading, using the 15K and 5K charts. Although the win rate is not high, the risk-reward ratio is well controlled, leading to substantial profits. Remember, adding to losing positions is a major taboo; do not rush for quick gains.
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