Build a trading system that can steadily make money, just like equipping yourself with a handy toolbox. The key is not that having more tools is better, but that each tool is easy to use and fits well together. Here are six essential 'tools':
First tool: GPS (trading positioning)
- First, think clearly about what kind of car you want to drive: Is it a sports car for quick trades (intraday trading), a fuel-efficient family car (swing trading), or a long-haul freight truck (long-term investment)
- Determine route preferences: Do you prefer to travel on flat provincial roads (volatile market) or highways (trending market)
- Set a destination: How much do you plan to earn from this trade? Is it just enough for daily groceries or aiming for a year-end bonus?
Second tool: Compass (direction judgment)
Market trends are like the weather; while they cannot be predicted with 100% accuracy, you can judge the high probability scenarios:
- After continuous heavy rain (sharp drop), seeing the clouds clear (reaching support) means the chance of sunny weather increases
- At this time, going out with an umbrella (shorting) is not as appropriate as wearing sunglasses (going long)
- The key is to identify the 'least likely scenario' and eliminate it
Third tool: Entry ticket (entry criteria)
Find the 'ticket buying method' that suits you:
- K-line patterns are like secret codes: Only enter when you see bullish patterns like 'Morning Star'
- Breakout signals are like keys to open the door: Trend line breakouts and pattern breakdowns are all entry signals
- Indicator resonance is like multiple validations: For example, the simplest MACD golden cross + moving average support is more reliable
Fourth tool: Airbag (stop-loss setting)
Choose one of two survival methods:
1. Fixed distance method: Just like parking, leave enough safety distance, set a stop loss below the previous low
2. Structural destruction method: Just like jumping out of a car when the brakes fail, retreat immediately when the trend line breaks
Fifth tool: Harvest basket (profit-taking strategy)
Three methods of picking fruit:
① Fixed-point picking: When it reaches the resistance level, it’s like the fruit tree is ripe, pick directly
② Quantitative picking: Stop when you earn twice the stop-loss amount, don't be greedy
③ Mobile picking: Continuously raise the profit-taking point as the market rises, like using a lift to pick fruits
Smart people prepare multiple baskets, first collect a part, and then see the situation for the rest
Sixth tool: Position balance (capital management)
This scale needs to solve two problems:
1. Safe base: Limit losses to a maximum of 2% of the principal each time, just like fastening a seatbelt
2. Profit accelerator:
- Adding positions after floating profit is like raising sails when the wind is favorable
- High certainty opportunities can be moderately leveraged, just like investing more in a good location
Remember: Never put all your eggs in one basket
Honing these six tools will make your trading system like a well-maintained car. While it cannot guarantee that you won't break down every time, it greatly increases the probability of safely reaching your destination. The key is to keep the tools simple and easy to use; don't turn a sports car into a mishmash.
BTC
The price has entered the H4 supply zone, pay attention to distribution opportunities at 107600-108950! The target support below is 104700-104400, 103000-102000!
ETH
Currently under regulation pressure on H4, short-term resistance is 2430-3460, you can try shorting! 2540-2570 can continue to wait for distribution opportunities! The target support below is 2313-2270!
SOL
The daily report has given 137-133 already for entry, the current rebound target is 143-148, if it doesn't hold, continue to look down at 137-133!
The information and data involved in the content come from publicly available materials, striving for accuracy and reliability, but no guarantee is made regarding the accuracy and completeness of the information. The content does not constitute any investment advice, and investing based on it is at your own risk!
