When the market starts to calm down and people start to reflect on their trading strategies, here is a basic but most effective trading methodology:
1/Set stop loss
Set the stop loss below the support level to control potential losses.
2/Determine the timing of initial position exit
Decide when to exit the initial position to lock in profits or reduce risks.
3/Set take-profit areas and price targets
Set multiple take-profit areas and price targets (such as 5 times, 10 times, etc.) around the resistance level to achieve profits in stages.
4/Track volume
Monitor the volume and ensure that it is increasing to confirm the market's activity and the continuity of the trend.
5/Evaluate market conditions
Analyze the current market conditions and consider holding positions if the market conditions are good.
6/Avoid emotional operations
Ensure that trading decisions are based on plans and analysis, not emotions.
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