The trading system is to institutionalize, systematize and quantify the trading. This will eliminate unnecessary losses caused by mentality in trading. Institutionalized and systematic trading can avoid the influence of mentality on trading.

1 Knowledge of the market

The first thing to be clear is that you need to have a clear and definite direction of the market, both in terms of fundamentals and technicals.

Through theory, taking Bitcoin as an example, we know that Bitcoin will break through the previous low of 15,000 at some point in the future to form 2 sells or 1 buys. So when you make a trade, try to choose a short trend. If you follow the trend, it is less likely to be hit by a stop loss.

2Plan trading Trading plan

Clear and definite stop-profit and stop-loss are easy to say but difficult to do. In fact, trading is all about winning rate.

Knowing is easier said than done. I am also on the road, constantly seeking. . .

3 Position Control

The simple understanding of position control is the control of your multiple positions. To go deeper, I think it is still necessary to open orders based on your own abilities.

If you are a player worth tens of millions, then even if you lose tens of thousands of dollars in your trading, it actually has no impact on you.

If you are just an ordinary person and you lose tens of thousands of dollars, it will be enough to make you cry in the toilet for hours.

We Chinese are always pursuing getting rich overnight. Getting rich overnight does exist, but the survivor bias is relatively large. How can you be sure that the goddess of luck will descend upon you?

The position is directly proportional to your mentality in dealing with the market.

I think that every time you lose money, you still need to plan the retracement ratio and calculate the profit and loss ratio. The rest is to plan the transaction. Trading plan

There’s an old saying that goes, “Do your best and leave the rest to fate.”

Trading is something God has given me. Just let it be.

To sum up in one sentence, lose more money, review and summarize transactions, and avoid wrong transactions in the future. Suppose there is one or more transactions that lose money.

Then you need to think about why you lost money and try to avoid it in subsequent transactions.

Especially when it comes to trading, only after you get hurt will you take the initiative to learn, summarize and generalize. No matter how much I say, it will be useless.