Trading Techniques: Rational Response to Market Volatility

Successful trading requires mastery of scientific operating techniques. First, establish a stop-loss discipline, setting a clear stop-loss point before each entry, keeping the individual risk within 3% of the principal to avoid emotional holding.

Secondly, use a gradual position-building strategy. When facing trending markets, the initial position should not exceed 20% of the total capital. After confirming the direction, gradually increase the position to reduce the cost of judgment errors. At the same time, adhere to the principle of 'trend is king' by using a moving average system to identify medium to long-term trends, avoiding counter-trend operations.

Additionally, control trading frequency to avoid excessive trading that depletes energy and capital. Review trades after the market closes each day, summarize gains and losses, and establish a stable trading rhythm to steadily profit amid market fluctuations.