Six Core Elements of the Trading System:

1. Trend Judgment: Identify the main market trend direction (upward/downward/sideways), trading with the trend increases the win rate, like sailing with the current;

2. Key Positioning: Identify support/resistance levels within the trend; these points of capital contention indicate potential market reversals or breakthroughs;

3. Signal Waiting: Patiently wait for clear entry signals (breakout/pullback/indicator resonance) at key levels; patience is a core ability;

4. Plan Formulation: Pre-plan entry points, stop-loss levels (core of risk control), profit targets, position ratios, and contingency plans;

5. Discipline Execution: Overcome emotional interference (fear/greed), strictly execute the established strategy to ensure trading consistency;

6. Review and Iterate: Regularly analyze trading records ◇ optimize entry signal selection, stop-loss settings, and capital management strategies, forming a positive cycle.

The essence of the system lies in reducing decision randomness through standardized processes and using mechanisms to constrain human weaknesses. Common misconceptions among beginners include reversing the order (e.g., finding signals before judging trends) and neglecting key elements (especially stop-loss settings and reviews). Professional traders convert probabilistic advantages into long-term profits through a complete closed-loop system. Each element requires specialized training and experience accumulation to ultimately form a personalized stable profit system.