The disciple pushed the door with takeout in hand and saw the master not watching the盘, but instead brewing tea by the table, full of confusion: "Master, why aren't you watching the盘, instead sitting here drinking tea?"
The master blew on the tea foam: "No need to watch the盘, I set the contract position well last night, just wait."
"But you cut three orders last week, isn't it annoying?" the disciple asked.
"Those three orders lost less than 1% of the account. A wave of SOL perpetual market in the past two days has brought back the profits for the whole month," the master put down the teacup, wiped the blackboard, and wrote eight characters: "Losses should be cut quickly, profits should be secured steadily, the core is 'small losses, big gains, let profits run', the rest are details."
He pointed to the blackboard and said: "First, go with the trend, use a moving average or MACD to distinguish the trend. Bulls only go long, bears only go short, don’t guess the top or bottom, to avoid getting hit from both sides. Wait for opportunities to open positions, wait for prices to retrace to key areas, such as previous high support or platform neckline, then act. Winning rate is not important, the key is to cut losses quickly when wrong, and leave enough profit space when right, stop losses should be hidden at the recent valley or peak, break it and get out, don't hesitate."
"Position size must be calculated well, it should be an amount that the account can still support even after ten consecutive losses. Calculate each position based on the historical maximum drawdown and then enlarge it by 30%, don’t add positions out of anger. Use the pyramid method for floating profits, adding according to the 5-3-1 ratio, up to three layers. Each time you add a position, move the stop loss up once, let the bottom position 'go ashore' first, at worst you can break even, and if the market is good you can secure profits."
"Take profit must wait for signals, increased volume stagnation, MACD divergence at the top, or a second failure to break new highs, if two appear, close the entire position. Don't take profits in batches, force yourself to wait for high probability signals, and don’t be afraid when encountering market reversals, that portion of profit never belonged to you."
After finishing the key points, the master smiled: "Choose indicators at will, moving averages or Bollinger Bands are fine, as long as the discipline remains unchanged, the method will work."
The disciple scratched his head: "Is it really that simple?"
"Yes, bringing simplicity to the extreme will make earning money feel boring," the master picked up the teacup, "Trading is not about finding treasures, it’s about waiting for opportunities; it’s not based on passion, it’s based on patience. If you can endure loneliness, the market will naturally reward you. If you want to go ashore, I will hand you the rope, and we will walk together."
