1.
It is a basic fact that financial trading is not investment at all, and financial trading market is not an investment place at all! Technical analysis is a universal technology that works in any trading market. Technical analysis only analyzes three elements: K-line, moving average, and trading volume. The purpose of the analysis is to find out the fact of the strength of the long and short forces, so as to judge and verify the trend.
To analyze the trend, you only need K-line charts: monthly chart, weekly chart and daily chart. If it is a margin trading with leverage effect, you also need to analyze more micro K-line charts, that is, 1 minute, 15 minute, 30 minute and 60 minute K-line charts. No other charts are needed!
2.
Monthly charts are sufficient for indicating the most macro-trends and the direction of long-term trends. Monthly charts have a good indicative effect on large-scale bull or bear markets. Understanding monthly charts is a basic skill that every trader must have. Daily charts are one of the three core charts used for trading. Each daily K-line is actually the so-called "daily noise". However, when multiple daily K-lines are combined and studied together with their positional relationship with the daily average family (i.e., the moving average system on the daily chart), it is usually found that they often have specific meanings - that is, the fact that the trend at the daily level (i.e., the trend on the daily chart, the same below) continues, turns, or has no trend at all, which plays an important role in guiding transactions.
The daily chart is generally considered to be the best chart for indicating short-term trends. The weekly chart is between the monthly chart and the daily chart, serving as a link between the two. The trend of a certain trading product over a period of time can be reflected in the monthly chart, weekly chart and daily chart respectively, and these charts must be strictly corresponding.
The difference is that the monthly chart has only one monthly K-line per month, the weekly chart has only one weekly K-line per week, and the daily chart generates a daily K-line every trading day. The different number of K-lines makes the daily chart suitable for indicating and tracking short-term trends, the weekly chart suitable for indicating and tracking medium-term trends, and the monthly chart suitable for indicating and tracking long-term trends. The joint analysis of the monthly, weekly and daily charts is like a joint operation of the three armed forces of the navy, army and air force, which will enable professional traders to have a big picture that ordinary people do not have.
3.
Whether it is stocks, futures, options, or even bonds, any trading market is a big casino invented by extremely smart people and a highly efficient wealth redistribution machine. Here, veterans always make money from novices, experts make money from laymen, experts make money from the public, and institutions make money from retail investors.
4.
There is a technique to gambling and there is a way to gambling. As long as you gamble with advanced techniques, correct strategies, established principles and strict discipline, it is not impossible to become a big winner.
5.
The secret to winning money can be summed up in six words: "keep the advantage continuously". To be more specific, it means carefully analyzing the odds of winning, firmly grasping the advantages, and strictly controlling the risks. That is, when the odds of winning are very high, place a big bet, when the odds of winning are relatively small, place a small bet, and when there is no chance of winning, do not bet.
6.
What are financial derivatives? They are weapons of mass destruction invented by financial trading geniuses, and are nuclear weapons in the economic and financial fields. Financial trading is the most similar human behavior to war, and is an alternative war, and its external manifestation is the crazy plundering of money. In this case, the speed of plundering is of course the faster the better, and the more efficient the better. Financial derivatives were designed under this guiding ideology.
Since the day it was born, its market capacity has expanded like a balloon because it is consistent with human nature of infinite greed and excessive gambling. At present, the scale of the financial derivatives market is unprecedented, and it has become the sedimentation place of most of the world's virtual capital. With its strength several times that of the real economy, it poses a threat to the real economy on the one hand, and on the other hand, it is fighting fiercely in the trading market.
Behind the Honesty allows you to personally experience the most dangerous and important game on Wall Street today. Derivatives trading is a bloody game, and the prey is the unsuspecting investors.
7.
Trend tracking trading technology will never be outdated because it points directly to the essence of the trading market. "Trend + pattern" is the true face of the trading market, and the trading market cannot and will not appear in any other form.
8.
The power of trend-following trading technology lies in that it captures all trends, whether they are uptrends or downtrends, especially those at a larger level! I believe that a successful trader does not need to know everything. It is neither possible nor necessary to try to be an "all-round trader" by trying to get involved in all markets. Allocate funds to where there is a large-scale trend; leave the market that is in a sideways state for a long time.
9.
There is nothing more foolish than taking risks in an uncertain market. “Don’t do it if you are not sure” and “Don’t do it if you don’t understand it” should be the highest principle of financial transactions.
10.
I basically hold a negative attitude towards fundamental analysis methods and value investment routes, and only raise one banner, that is, to hold high the banner of "professional speculation + technical analysis".
11.
The technical analysis theory with trend following technology as the core is the only correct and smooth way. There is only one kind of technical analysis that is credible, that is trend following.
12.
Regardless of any trading product, its price trend has only one external manifestation, that is, the alternation of trend and consolidation (or "pattern").
13.
You should know that K-line, moving average and trading volume record the market itself, and K-line actually describes the footprints of funds.
14.
Trend - Only trend is the core secret of profitable trading. All winners make their living by trend. This is the truth or essence of trading. A major bull market or a major bear market is nothing more than a large-scale trend movement. If the bull market is likened to going up a mountain, then the bear market is equivalent to going down a mountain. You can make a lot of money both going up and down a mountain, and the speed of making money by going down a mountain is more than twice as fast as going up a mountain.
15.
The power of trends, especially large-scale trends, is invincible. You only need to discover the direction of the trend early and take trading actions accordingly, without having to worry about the reasons that drive this trend!
16.
Prices evolve in a trending manner, which points to the key to our profit from the stock market. The stock market has two and only two ways of moving: trending (uptrend or downtrend) and sideways (i.e. "no trend").
Because stock price fluctuations depend on the power balance between buyers and sellers, this power balance will rise and fall, and repeat over and over again; as long as the market exists, no party can completely eliminate the other party; when one party is dominant, it will move out of the trend, that is, the bulls will dominate and the trend will rise, and the bears will dominate and the trend will fall; when both sides are evenly matched, it will present a sideways shock and consolidation pattern.
However, this long-short balance state will eventually be broken regardless of the duration, and the market will re-enter the trend market, and return to the non-trend market after the trend market ends. The market will always switch between these two states. If the trend market that unfolds after the non-trend market ends continues in the original direction, it is called a "consolidation pattern" or "relay pattern"; if the trend direction reverses, it is called a "reversal pattern", and the corresponding area is called the "top area" or "bottom area".
17.
The profits obtained through financial exchanges mainly come from trends, especially large-scale trends. Therefore, trend tracking technology is the most essential method to make profits in financial transactions.
18.
On the same K-line chart, he pays attention to three key points: 1. The shape and position relationship between K-lines; 2. The shape and position relationship between K-lines and moving averages; 3. The shape and position relationship between moving averages. He always trades in the direction of the medium and long-term trend, but if it is a margin trading, he will not relax his vigilance against short-term reverse fluctuations.
He can not only correctly judge the direction of long-term, medium-term and short-term trends, but also clearly perceive the more essential things hidden behind the trends: the comparison of the strength of long and short forces and their transformation. He only fights when "all conditions are favorable to him", and at other times he just observes and waits. He does not think he is smarter than the trading system, so he trusts the trading system more than his own feelings.
The biggest difference between him and ordinary people is that he is neither greedy nor fearful, neither arrogant nor discouraged. He advances when he should and retreats when he should. He is not bound by emotions such as fear of failure or fear of gain. He not only has excellent self-management ability, but also has a reasonable fund management plan.
19.
The relationship between the long-term trend, medium-term trend, short-term trend and micro-trend is that their directions may be the same or opposite. When the micro-trend, short-term trend and medium-term trend are in opposite directions, as long as it is not the end stage of the medium-term trend, the micro-trend and short-term trend will generally end and turn to obey the medium-term trend. This is called "the arm cannot twist the thigh". At the critical moment, the thigh still determines the arm.
20.
When traders have mastered trading techniques, have mature trading systems and trading concepts, and can execute trading decisions and implement trading rules without difficulty, trading becomes a skilled job and traders become skilled workers. Mature traders no longer try to "innovate" or seek exceptions, no longer try to "surpass" the trading system or "overturn" the trading rules, but just routinely handle each transaction according to the buy and sell signals issued by the trading system.
These are the lessons learned from many failures, and perhaps each lesson corresponds to one or more painful experiences.
21.
A complete set of solid trading techniques, a mature trading system and several trading rules that cannot be violated!
22.
I will not hesitate to place orders according to the signals sent by the trading system, buy or sell, open or close positions. Regardless of profit or loss, I can always remain calm, because I know that I have a basis for action and retreat. I firmly believe in the power of my trading system and have no doubt about the value and correctness of the whole set of trading rules I have summarized. The only thing I need to worry about is whether I can actually do it. I am investing less and less troops in the "vanguard". If the "vanguard" is frustrated, I will not increase the bet to flatten it. I will directly stop the loss and cut the position, so that this transaction will not have the opportunity to cause me even the slightest trouble. If the expectations are not met, regardless of profit or loss, I will immediately exit the transaction.
If I accidentally get into a difficult trade, as long as I realize it, I will immediately raise my hands and surrender, admit defeat and get out, instead of struggling to hold on. I no longer try to maintain a position that is unfavorable to me. I don't want to spend even a little energy on it, and I don't even want to look at it for a second. I just close the position and get it over with. In this way, when others come to me to ask for advice on trading experience, I hope that I can also say like the oil seller, "I don't have anything special, just practice!"
23.
"Don't deal with unfamiliar varieties", which means that the technical trends of the varieties involved must be able to be included in his technical analysis framework.