I didn't talk to him about moving averages or MACD, just shared three pieces of experience I gained from my lessons. As a result, he followed my advice for three months, and his account directly rose to 50,000 U, without a single liquidation!
These three survival rules, how much you can comprehend depends entirely on your respect for the market.
The first rule is to divide the money into three parts, prioritize survival before making a profit! I told him to split the 2700U into three portions, each 900U, and absolutely do not use it for anything else.
This is the principle I figured out after losing my entire investment back in the day, unable to sleep at midnight!
The first trade should be short-term, open a position a maximum of twice a day, and close the software after finishing, as looking too much can lead to greed.
Wait for the trend on the second position; if the weekly line hasn’t shown a bullish trend or broken key resistance with volume, just wait patiently.
The third position is lifesaving money; when the market spikes and threatens liquidation, top up your margin; at least you can stay in the game. Remember, liquidation is just a broken finger; if you lose your capital, it’s like losing your head!
The second rule is to only take a bite of the trend; at other times, behave like a turtle!
I was severely cut in a volatile market in the past; now I only recognize three signals: if the daily moving averages are not aligned for a bullish trend, I resolutely stay in cash, don’t be afraid to miss out.
Only enter the market when the trend breaks through the previous high with increased volume and the daily line stabilizes;
When profits reach 30% of your capital, withdraw half of the profits; set a 10% trailing stop for the remaining. Money in your pocket is yours; don’t try to eat the entire market!
The third rule is to lock in your emotions; mechanical execution is the only way to last!
Before placing an order, you must write a plan and strictly execute it: set the stop loss at 3%, and if it reaches that point, close automatically; don't think about 'waiting a bit longer.'
When profits reach 10%, move the stop loss to the breakeven point; the profits made afterwards are just gifts from the market. Turn off your computer at midnight sharp every day; don’t even look at the beautiful candlestick charts. If you can’t sleep, delete the app. The longer you watch the market, the more chaotic your emotions become, and when they become chaotic, you make mistakes!
The market has opportunities every day; if you lose your capital, it’s really gone! First, implement these three rules, then study wave theory and technical indicators. That’s all for today; if you like it, just follow me~