There are four key pieces of information to understand on paper to make a complete transaction

After figuring it out, calculate the risk and manage the position, and then open the order

1. Where to enter the market

2. What is the trading level (limit the holding time)

3. Where to stop loss (risk exposure range)

4. Where to stop profit (potential profit)

No matter what kind of trading technology is used, what data is used, and how many calculation factors are used, the ultimate goal is to know the above information more clearly

Most of the time, the position information of a certain person that we can obtain in the public domain information flow is only the entry price. Some people may disclose 3 and 4, but 2 is still unknown.

The role of the trading level is to circle the price range of this transaction, which is used to define the stop profit and stop loss, and secondly, to limit our maximum holding time. This is another key information that determines whether the current position needs to be closed in addition to the stop profit and stop loss: when the stop profit and stop loss have not occurred, and the holding time exceeds the average holding time of the trading level, the possibility of variables in the current order will increase, and it is necessary to temporarily leave the market and wait and see.

Cross-level trading is really a common thing, and it is also one of the reasons why most people lose money. For example, I have been doing long swings recently. If I don’t limit my holding time, if I hold it longer, I will definitely be the one who turns off the lights and eats noodles today.

So before placing an order, understand this information, calculate the risk, manage the position, limit the time, and then enjoy your trading.