Summary of the Trading System

The essence of trading is: Cut losses when wrong, hold on when right, small losses, large gains, and manage significant profits and losses. Specifically for each core link:

Trend Following: Find a simple moving average to distinguish between bullish and bearish; only go long above it, and only go short below it.

Opening Position, Testing Position: Act in line with the trend, go with the major trend and against the minor trend, and consider potential large risk-reward ratios when entering the market. Enter at this position; if wrong, the stop loss is small, but if right, the profit is large, usually at the bottom of a trend or the early stage of a trend.

Opening Position, Stop Loss: If a key point is breached, you must cut losses, no room for luck. If the price comes back, you can look for another opportunity to enter. Do not have a mindset of luck, thinking it might bounce back, and absolutely do not average down on losses.

Adding Position: Add positions during floating profits; adding positions is the core of making big money. After the price rises as expected, if it retraces, add positions at the support level where it stops falling or at a previous high break. Go with the major trend and against the minor trend.

After adding positions, you need to move the stop loss point to the new key point. The base position is already safe, leaving only the stop loss risk for the added positions. If it fails, stop loss on the added position, wait for the next opportunity. If it continues to rise, hold firmly, continue to wait for a retracement to add positions, and keep moving the stop loss. Until the last move is stopped out or a head signal occurs to take profit.

Taking Profit: Never take profit lightly at any time; this is the key to making big money. Exiting can be in batches or all at once, preferably all at once, as it allows you to wait for the head signal with the highest probability. If it is right-side trading, floating profits will definitely retrace; you must accept this mindset. Don’t think about selling at the highest point, or feel you lost out if you didn’t sell at the peak and think you must wait to sell at the highest point again.

As long as you can master and follow these principles in practice and maintain discipline and consistency, you will find that making money is a natural outcome.

Experienced in the crypto space, sharing insights, feel free to click on my avatar to consult me $BTC $ETH