How to achieve stable profits in trading? After reading this article, I believe you will learn how to increase your assets tenfold. If you like it, please like and collect it, and enjoy it more in your spare time. Strategy and plan: the key to achieving stable profits Strategy and plan are closely linked. Plan is the extension and concretization of strategy. In trading, strategy is to decide whether to take a big battle or a small-scale guerrilla war according to the current situation, and to formulate a feasible plan.
1. What is a strategy? A strategy can be simply summarized in three words: profit-loss ratio. It represents exchanging small losses for big wins to ensure long-term survival and development in the market. 2. Understanding the profit-loss ratio The profit-loss ratio is an abstract and concrete concept. Specifically, it refers to the ratio of small costs to large profits. Depending on the trading time cycle, the profit-loss ratio will be adjusted, for example:
👉Day trading: You may win 90 or 120 pips with 30 pips risk
👉Trading during the week: As time goes on, you can risk 50 points to earn 200 or 300 points. However, the market may experience a 300-point increase in a week, but it is not a 300-point increase in one day, but it may be a 400-point increase in three days, and then a correction of more than 100 points in the next two days.
👉Trading within the month: Depends on the market stage. If you can earn 300 or 400 points and break through the cost zone, you need to adjust yourself and observe whether the market has the potential for us to continue to earn 500 or 600 points of profit. The profit and loss ratio is abstract in different time structures and needs to be considered comprehensively. The profit and loss ratio is fixed, but it can be adjusted according to the market development stage and the characteristics of individual traders, such as the adjustment of structure and proportion. 3. Plan: More specific implementation steps The plan is the specific implementation steps of the strategy, including:
👉Determine whether to go long or short, that is, determine the trend direction
👉Set entry, stop loss and take profit points according to the market development stage
4. The difference between the range plan and the trend plan The range plan is suitable for the market oscillation stage, in which the profit target is generally an active profit stop. The trend plan uses the holding time to obtain a larger trend development space and usually does not need frequent adjustments.
5. The importance of holding positions Whether it is a range plan or a trend plan, holding positions is the key to achieving profit goals. The success of any plan depends on unconditional execution. The determination to hold positions, stop losses and take profits is the key action that reflects trend thinking.
6. Firmly implement the plan and emphasize execution Don't be confused by small fluctuations in the market, always firmly implement the plan. Execution is the guarantee for the implementation of the plan and the key to the stability of the trading system. Through fixed execution links, a stable trading system is formed. The ultimate core lies in analytical ability, strengthening the integrity of thinking logic, improving the accuracy of the plan, and providing guarantees for the implementation of the correct plan. According to the personalized operation style, the strategy and plan are fixed to ensure that they match the market trend and achieve stable profits.
