Summary of trading system
The essence of trading is: stop loss if you are wrong, hold on if you are right, make small losses and big profits, and make big profits and losses. Specific to each core link:
Follow the trend: Find a moving average to simply divide the long and short positions. Only go long above it and only go short below it.
Open a position, test a position: follow the trend, follow the major trend and go against the minor trend. When entering the market, you must consider the potential profit and loss ratio that is large enough. That is, if you enter the market at this position, if you are wrong, the stop loss is very small, but if you are right, the profit is very large. This is usually the bottom of the trend or the early stage of the trend.
Open a position, stop loss: If the key point is broken, you must stop loss, and don't take any chances. If the price goes back up, you can find another opportunity to enter the market. Don't take any chances, thinking that you may be able to rebound after a little resistance, and don't try to spread out your losses.
Adding positions: Adding positions with floating profits. Adding positions is the key to making big money. The price rises as expected and then pulls back. Add positions at the support level to stop the decline or break through the previous high, following the general trend and going against the small trend.
After adding positions, you need to move the stop loss point to a new key point. The base position is safe, and only the stop loss risk of the added position remains. If it fails, stop the added position and wait for the next opportunity. If it continues to rise, hold the position firmly, continue to wait for a callback to add positions, and continue to move the stop loss. Until the last move is stopped or the head signal appears to stop profit.
Stop profit: Don't stop profit easily at any time, this is the key to making big money. You can exit in batches or all at once, preferably all at once, because you can ask yourself to wait for the highest probability of the head signal. If it is a right-side transaction, the floating profit will definitely be withdrawn, and you must accept it in your heart. Don't think about selling at the highest point, or think about not selling at the highest point, and think that you have to wait for the highest point to sell because you have lost money.
As long as you can master and follow these principles in practice, and maintain discipline and consistency, you will find that making money will come naturally. #BTC #ETH
