#交易类型入门 1, The Simplest Path: Wait, Follow the Trend, Light Position, Stop Loss

(1) The first lesson in trading is to learn to wait! You must control your hands; trading without strategy or plan is never random or casual, as it will only offer the main players free opportunities.

(2) Following the trend is the primary principle of trading! In the first three years of starting out, only engage in daily trading. By combining weekly and monthly charts with the trends in economic development and industrial growth, you can assess the overall market direction. Use daily charts to find entry opportunities, following the major trend and finding key resistance levels to open positions against minor trends.

(3) Light position trading is a principle that must be followed by beginners! All market movements occur in waves; barring extreme forced liquidation or exceptional events, there are rarely smooth one-directional trends. Only through light position trading can you hold on; otherwise, even if you predict the direction correctly, you may still be washed out by the main players or even incur losses.

(4) Stop loss is the most important principle for beginners in trading! Stop loss is the last line of defense to protect your capital; always set a stop loss when opening a position! The profits you earn in the trading market are given by the market and are uncertain, but your losses can be controlled by your stop loss, which is 100% certain. Of course, stop loss is a vast topic; due to limited space, I will write specifically about it next time.

2. Focus on one technique, simplify and replicate practices

There are many successful traders both domestically and internationally who have written extensively on trading techniques, including many classics. However, when learning professional trading techniques, you cannot take a scattershot approach; instead, you must ultimately choose one technique to study deeply. Otherwise, the harder you try, the more you will fail, and you might end up losing so much that you doubt your life choices. This is because many trading techniques are fundamentally conflicting or even contradictory. There are short-term, swing, and long-term techniques; speculative, hedging, arbitrage, and hedging strategies… Retail traders must find a trading technique that suits them within three years and continuously refine it through practice, and it is essential to do subtraction rather than addition. Successful trading techniques must be simplified and continually replicated in practice to be considered on the right path.