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When trading in the cryptocurrency market, what aspects should your Bitcoin trading system include?
Let's emphasize two points regarding the importance of a trading system.
To survive in the bloody and brutal market of trading, two key issues need to be addressed as follows:
1. How to find the non-random parts in a highly random market price fluctuation $XRP
2. How to effectively control one's psychological weaknesses to execute rational decisions. $ETH
The significance of establishing a trading system lies in framing our trading behavior, avoiding making trades based on emotions, and instead focusing on high-probability actions.
The trading system should include several components: $BTC
1. Underlying asset
2. Position
3. Direction
4. Entry point
5. Stop loss
6. Take profit
Before any trade, these key questions must be thoroughly considered. Each of these six points is very important, especially 4/5/6. Those with trading experience know that these three points are relatively complex.
It takes a long time of trading and summarizing to master them, and while tutorials often show standard and nice signals, in actual trading, there are many variations, noise, and less standard signals. At that point, it really comes down to whether to enter the trade or not, which needs to be summarized individually.
Many trading courses available in the market can be evaluated based on the above points, making it clear which are better and which are worse.
The above is a general outline; when actually establishing a trading system, the following points also need to be considered: #币安Alpha上新
1. What is your principal?
2. Will these funds be used in the short term?
3. How much financial loss can you tolerate?
4. What are your expectations for future returns?
Based on the above points, consider issues related to capital management, whether to invest in short-term, medium-term, or long-term. The risk you can bear is small, large, risk-averse, or risk-seeking.
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