What is a trading system? Let’s talk about it simply:

I will only use plain language and my own understanding, without getting into abstract concepts, to discuss what a trading system means to me:

The first and most important point about a trading system is to recognize the market cycle: broadly speaking, it’s the bull and bear cycles; more specifically, it’s the early stage of a bull market — mid-stage excitement and explosion — and the late stage of madness and FOMO. Going even further, it refers to the market conditions during each of these periods: consolidation and fluctuation — small breakout/breakdown — consolidation and fluctuation — breakout/breakdown (completing the transition of a larger cycle)... The most important reason to recognize the cycle is that you need to view the market from an objective perspective, without falling into emotions. Your luck and inertia can lead to losses...

The second point is that you need to organize the general patterns of the operators and the market through continuous trading. Note that I said “general patterns”! Because there are no absolutes in the market, don’t hold me to it! You need to use experience to determine how to operate during consolidation phases, how to operate in trending markets, and how to deal with the typical methods used by operators for consolidation, etc...

At this point, you should understand that recognizing the cycle allows you to take an objective view of the market, to prevent yourself from mistakenly applying strategies appropriate for a consolidated market to a trending market, or vice versa; organizing general patterns and experiences helps you develop strategies and mindsets for each market phase, to avoid missing opportunities or incurring significant losses!

You might ask, what counts as experience? This so-called experience varies for everyone. For me, it includes market feel + patterns + naked candlesticks + emotions + understanding of market conditions!

Lastly, here’s my personal suggestion: if you want to turn your fortunes around through trading, if you want to escape difficulties through trading, then study hard, learn patterns, learn naked candlesticks, organize your experiences. Trading, while it may not be absolutely fair in relation to society, is already quite good...

I can’t describe my trading skills; everyone has different personalities and thought processes. I can only share my feelings. There’s a saying from Eagle Sauce that sums it up well: in trading, the more you try to be like someone else, the faster you’ll fail!

This is purely handwritten text, it’s tiring, please don’t steal it, I’m just an unknown little blogger!