《The Four Words of Trading Wisdom: Flexibility in Response》

1. Trend as a Friend: The Wisdom of Moving Averages

The market flows like a stream, having its natural direction. Taking the 20-day moving average as an example: when the price stabilizes above the moving average, it is like water flowing upstream, at which point one should trade long; conversely, if the price drops below the moving average, it is like the water flowing downstream, and one should consider shorting. This seemingly simple rule can ensure that over 70% of a trader's actions align with the market's main theme.

2. The Art of Position Sizing: The Game of Risk-Reward Ratio

Mature traders understand the wisdom of "the little horse crossing the river." It is recommended that the initial position does not exceed 5% of the total capital, and one should strictly seek opportunities where the potential profit is three times the risk or more. Remember: the market will always provide opportunities for the brave, but only profits for the cautious.

3. The Philosophy of Stop-Loss: The First Rule of Survival

Setting a stop-loss is not a compromise with the market but a respect for trading. It is advisable to set the stop-loss point 2%-3% outside the key support/resistance levels. When the market proves us wrong, decisively stopping the loss is not failure but a way to conserve strength for the next success.

4. Timing for Adding Positions: Golden Nodes in the Trend

When the initial position gains more than 5%, consider adding to the position when it stabilizes after a pullback or breaks through a key level. However, note: each time you add to the position should be regarded as a new independent trade, requiring a separate stop-loss point.

5. Dynamic Risk Control: The Guardian of Profits

It is recommended to adopt a trailing stop-loss strategy: when profits reach 8%, move the stop-loss to the breakeven point; when profits reach 15%, move the stop-loss to a position that is 5% profitable. This "profit-locking" mechanism allows profits to run freely.

6. The Realm of Holding Profits: Becoming Friends with Time

Data shows that 80% of the profits from significant market movements come from the last 20% of holding time. It is recommended to use the "trend-destroying take-profit method," meaning unless there is a clear trend reversal signal, one should hold patiently.

The essence of trading is a game against oneself. Each of the above links tests the trader's discipline and execution. Remember: the market will not change because of our expectations; only those who adapt to the market can become the final winners. As the old saying on Wall Street goes: "The trend is your friend, but only if you learn how to get along with it."#比特币交易心得