#趋势交易策略 Pure Dry Goods! A Trend Trading Strategy That Anyone Can Learn

Recently, many friends have privately messaged me asking how to find a steady way to make money amid market fluctuations. Today, I will share a simple and easy-to-learn trend trading strategy that even beginners can easily master!

Trend trading is all about "going with the flow," following the market trend: buying in an uptrend and selling in a downtrend, using small stop losses to capitalize on big market movements. It sounds easy, but to do it well, there are quite a few tricks involved.👇

✅ Confirm Trend Direction

Trends mainly fall into three categories: upward, downward, and sideways. In an uptrend, the price's highs and lows continue to rise; in a downtrend, it’s the opposite; and sideways means the price fluctuates within a fixed range. To judge the trend, we can use moving averages. For example, if the short-term moving average crosses above the long-term moving average, it may signal the start of an uptrend; conversely, it could indicate a downtrend.

✅ Seize Entry Opportunities

In an uptrend, it’s recommended to enter when the price retraces to an important support level and shows signs of stabilization; in a downtrend, enter when the price rebounds to an important resistance level. A support level is where the price finds buying support during a decline, while a resistance level is where the price faces selling pressure during an increase.

✅ Set Reasonable Stop Losses and Take Profits

Stop losses can control risk and prevent major losses, while take profits can lock in gains and prevent profit erosion. The stop loss level can be set based on the entry price and market fluctuations; for instance, in an uptrend, it can be set below the most recent low during a pullback; the take profit level can refer to the historical volatility of the market and expected targets.

✅ Practice Good Capital Management

Never invest all your money in a single trade. It’s advisable to build your position in batches, such as dividing your funds into several parts and gradually buying in at different times to reduce the risk of a one-time buy. When the market trend aligns with expectations, it can also increase returns.

When I invested before, I didn’t manage my funds well and went all in, resulting in substantial losses when the market suddenly reversed. Later, I adjusted my strategy, adopted a batch entry approach, and strictly set stop losses and take profits, which gradually led to stable profits.

Although trend trading strategies are good, be aware that the market changes rapidly, and no strategy can guarantee a 100% profit. In actual operations, everyone must learn more, practice more, and continually summarize their experiences.