Hello, dear friends, hello, I am Brother Yan!
Do you enter the market after seeing others share their highly profitable records and want to try it yourself, but get trapped every time you enter the market, miss out if you sell at a loss, and get liquidated if you hold on to a position. It seems like the main force is staring at you, right?
Let me tell you quietly, the main force is targeting those who rely on their feelings to operate. These are called weak traders (just a name, no insult). The 20% of professionals in the market make 80% of the money of weak traders. Otherwise, where do they make their money from? So...
You must transform yourself into an advantaged trader, otherwise you will be harvested repeatedly. Weak traders usually do not set stop losses. They run away when they make a little profit and hold on when they lose. Once the trend reverses, their positions will be liquidated and all their losses will be lost. My "Guide to Turning a Million Dollars into a Clearinghouse" explains the reasons in detail. So how can you become an advantaged trader to make money from weak traders?
In fact, it only takes 3 steps, let’s take a look:
1. Trend direction
Many people see the price soaring when they open an order, and for fear of missing out on a wave of explosive market movements, they immediately open a long position at 100 times the market price. Soon the price will stop rising or even turn downward. In fact, think about it the other way around. The price is driven by the buyers. Just imagine:
If you buy in based on your feelings, who can you expect to buy in and push the price up? The main force will not raise the price to make everyone make money, so when the price goes up sharply, it is likely that the main force will close its position. Only when everyone buys crazily can the main force sell a large number of its chips to everyone, so...
Every time you buy, ask yourself a question: Are there people weaker than me who continue to buy?
If you keep losing money after buying, it means that the order direction is wrong. You should close the position and leave the market as soon as possible! So how can you make the right choice? You just need to...
Observe the high and low points of the band from the 4-hour cycle.
If the high and low points of the band are constantly rising, it means that it is an upward trend and you can only go long.
If the high and low points of the bands are constantly decreasing, it means that it is a downward trend and you can only short.
What if the high and low points change irregularly? It's very simple... just wait for the trend to start. You won't lose money by waiting, and even professional traders won't participate in complex market conditions, so why take risks? Find out the direction to open an order, and find out the entry range, and try to open the order in a more conservative position as much as possible, because...
Although the K-line is likely to run in the same direction, there will be continuous reverse testing in the middle. If the order position is not good, the position will continue to turn from floating profit to floating loss, and the process will be very uncomfortable...
2. Entry range
Many times you judge the direction correctly, but rashly open an order and enter the market, which leads to a bigger and bigger floating loss, which makes you doubt yourself. Finally, you can't stand the torture of floating profit turning into floating loss, so you close the position manually. Soon after closing the position, the price starts to move in the direction you expected. I believe that you will be so angry when you encounter this situation, so...
The entry range is crucial. It can ensure that we have a smaller stop loss space and a larger take profit space. Finding the entry range can also quickly determine the price area that we need to pay close attention to. When the K-line reaches this area, we can watch the market closely and look for opportunities to enter. So how can we find the entry range?
I will share with you a little trick. You only need to draw a horizontal line between the high and low points of the band. As long as it is a trending market, you can see that the high and low points of the bands before and after are related. Every time the price drops to this position, it will start to rise. The area near this horizontal line is the entry range. If you find an opportunity to enter the market here, it will be difficult to lose money. If you want to be more confident, you need to...
3. Opening signal
The entry range near the horizontal line is only an approximate position. To know the exact entry position, you need to find an opening signal. Otherwise, if you open an order too early, you will keep losing money. If you open an order too late, you will miss the opportunity. The key to opening a position is to enter the market when you see the energy of the callback weaken until it is exhausted and the trend direction begins to gain momentum... I will introduce two opening signals.
1. Three-stage callback + cross star breakthrough
In the three-stage callback, we can see that the slope of the arrow is weakening and gradually flattening, which means that the downward force is weakening. The appearance of a doji means that the forces of bears and bulls are balanced. The appearance of a positive line after the doji breaks through the high point of the doji, which means that bulls are dominant. The probability of the next rise is greater. You can open a long position directly at the moment the doji breaks through.
2. Three-stage callback + double bottom pattern
The three-stage callback shows that its slope has not weakened, which means that the power of the bears may not be fully released. At the low point 2, we can see that the bears have fallen too much and formed a long lower shadow. The yellow circle then broke down again, but...
This time the downward breakout was strongly pulled back by the bulls, and the downward breakout failed and broke through several candlesticks in front. This is a strong outer Yang line (enclosing the previous candlestick). You can enter the market when it breaks upward. It is almost certain that it will rise. There are many combinations of entry signals, which cannot be explained clearly at once, but...
The K-line has various forms of expression. The core logic is to exhaust against the trend and then exert force with the trend. If you have any questions, you can discuss with me. I will put various entry signals in the "Guide to Turning Over a Million Yuan" so that you can learn from it.
The above is a simple trend-following pullback strategy. Trade according to this method and then follow the position calculation method I wrote in the book. From now on, you can make small losses and big profits, never get liquidated, and slowly achieve stable profits.
Okay, that’s all for today’s sharing. See you next time. Bye!