The experienced teacher's explanation is very comprehensive, summarized as follows:
Building a trading system and risk management:
· Trading is counterintuitive, but correct trading can accelerate personal growth;
· Common issues for beginners: large emotional fluctuations, difficulty executing stop-losses, need to establish a trading system;
· Capital allocation advice: low-risk investments (quantitative funds/wealth management) + idle money trading (spot/contract);
· Account isolation strategy: long-term accounts ≤ 3x leverage, short-term accounts about 10x leverage, to avoid fund misappropriation; -
Position and leverage management:
· Use leverage as a tool: 3x leverage with 3% stop-loss can enforce discipline;
· Position management methods: pyramid/inverted pyramid/rectangle/Kelly formula/martingale strategy;
· Gradual opening of positions and taking profits can improve the fault tolerance rate to 6%;
Application of technical indicators:
· Indicators need to understand the principles (e.g., MA smooths based on closing prices), be wary of lag;
· Recommended indicators: 144/169 moving averages (Vegas channel), MACD, Bollinger Bands;
· Multi-indicator cross-validation increases win rates;
Support/resistance level judgment:
· Judgment methods: Fibonacci/Dow Theory/integer levels/liquidity heat map;
· Key point: effectiveness of volume concentration areas > pure technical patterns;
Trading mindset and system establishment:
· System elements: clear opening logic, profit-loss ratio calculation, strict profit-taking and stop-loss;
· Training path: simulated trading → small position real trading → review and optimize → normal position;
· Emotional management: accept losses as part of the plan;
Utilization of idle time:
· Review historical trades, learn new strategies such as options/arbitrage;
· Set price alerts to capture key levels;