Today I talked with the students about (trend trading strategies), and I concluded the following points through my own views and some textual perspectives:
1. Trend recognition is key: The success of trend trading strategies depends on accurately identifying market direction (upward/downward/consolidation). This requires combining technical indicators (such as moving averages, MACD, ADX) or price patterns (such as breakouts, pullbacks) for multi-timeframe validation to avoid misjudging single signals.
2. Go with the trend, strictly set stop-loss: Enter the market after confirming the trend, but pre-set stop-loss levels (such as key support/resistance levels, volatility multiples) to prevent significant losses from false breakouts or trend reversals. Stop-loss settings should consider risk tolerance and market volatility.
3. Dynamic tracking and position management: When the trend continues, lock in profits through trailing stop-losses (such as trailing take profits, following moving averages) to avoid exiting too early; at the same time, adjust positions based on trend strength (such as increasing positions should be done in batches after confirming the trend, avoiding one-time heavy investment).
4. Filter out fluctuations, avoid noise: Trend strategies perform poorly in choppy markets, so it is necessary to combine volatility indicators (such as ATR) or market environment analysis (such as macroeconomics, policy events) to filter out ineffective signals or adopt a multi-strategy combination to reduce losses during choppy periods.
5. Psychological discipline outweighs technique: Trend trading requires overcoming the psychology of “fear of missing out” and “fear of loss,” strictly executing the trading plan, and avoiding decision interference due to short-term fluctuations or subjective predictions. Long-term profitability relies on regular execution rather than single trade outcomes.
The above views are for reference only.
