#MyTradingStyle

To be more precise, this is my trading philosophy:

1. Identify Trends

You can use the correct knowledge you possess to identify trends. Upward or downward.

2. Identify Levels

Also known as cycles: year, month, week, day, hour. These are different levels and cycles. The trends under different cycles may be entirely opposite.

For example, Bitcoin may be in a bullish trend on the yearly level, but show signs of resistance at the top on the monthly level. It may have started to pull back on the weekly level, while it is at the lower end of a consolidating range on the daily level.

You must understand the level you are participating in so that you are not affected by changes in the market; otherwise, you will be confused.

3. Trend Following Trading

Once you have identified the trend and confirmed the level you are participating in, what you need to do is trade in the direction of the trend. For example, if the trend on the weekly level is bearish, then you can look for rebound opportunities on the daily level to short, rather than going long at the lows. If you are not careful, you may incur losses. If you have some trading experience, then you naturally understand what I mean.

4. Set Stop Losses

There is no 100% correct trade, so you need to be responsible for your positions (capital) rather than your assumptions and biases. When you are right, you can naturally make a profit. However, when you are wrong, even a stop loss will give you the confidence to start over and allow you to have the capital to do so. Your assumptions or biases that lead you to take losses will only prove your fantasies to be right. At this point, you need to understand that capital is meant to help us make money, not to indulge in fantasies.

5. Pursue Excellent Returns

Do not let fluctuations at the hourly or minute level cause you to lose your positions at the daily or weekly level.

As shown in the figure: After you have mastered as much knowledge as possible, you may have established a short position at 110000 because you waited for the bearish signal to build a position on the weekly level. Then you should close your position at the bottom of the weekly level, rather than panic and close it during a daily rebound for only a small profit. Subsequently, the market continues to decline, and you can only watch helplessly as the profits that originally belonged to you are lost.

Each line in the figure is a tool to help you identify trends. Can you understand the function of each line? Leave your thoughts so we can discuss together.