Trading can be summarized in 16 characters,

The way is simple, follow the trend, cut losses in time, and let profits fly,

The way is simple, it’s just that when it goes up, it goes up, and when it goes down, it goes down. Judging the rise and fall is very easy. If multiple moving averages are trending up, it’s an uptrend, and if they are trending down, it’s a downtrend. It’s that simple, don't overthink it.

Following the trend means going long when it’s rising and going short when it’s falling. It’s not that going long when it’s rising is always correct; it’s not about right or wrong, but about the magnitude. When it’s rising, the greater probability is that it will rise more and fall less. Large movements lead to large profits.

Cutting losses in time means you need to stop losses when you’re wrong,

Letting profits fly means you should hold onto your gains.

In reality, most people lose money by doing the opposite: analyzing this and that, going against the trend, rushing to cash out when they make a profit, and stubbornly holding on to losses.

All examples of people making big money are basically based on these sixteen characters. This model is often unprofitable because big market trends are rare. It goes against human nature; once you have it, you can reap the rewards from beginning to end. In life, you can become wealthy twice.

Trading is simple, but it’s hard to do. I often watch and think about it myself.