1. For the moving average system, MACD or KDJ indicators are generally added.
Let's talk about the advantages of this system first: In the trend market, the prices are arranged in the order of the moving average, and the operation is simple and the profit margin is large. The deviation of MACD and KDJ from the real situation can well catch the top and bottom of trend reversal. And the disadvantage of this system is also very serious. In the volatile market, the moving average fails, and the false divergence between MACD and KDJ becomes an operation against the trend. Everyone should know the degree of danger in the operation against the trend in the unilateral market. So this system lost PASS on the first day I came into contact with trading.
2. In the BOLL system, an indicator KDJ or RSI is generally added, and some people also cooperate with MACD.
The advantage of this system is that all prices are included in the boll track, which is very effective in dealing with volatile markets. Basically, go short on the upper track and go long on the lower track. However, the disadvantages are also obvious. The entry point is not accurate, and the trend market has two situations of callback to the middle track and the upper and lower tracks, which is difficult to grasp in operation.
3. Wave system and wave-based Dow system.
The wave system can well grasp the overall structure of the trend, which is relatively macroscopic and intuitive. Dow has a good definition of structure, and has a clear understanding of the structure of trends. But the disadvantage of the band is that there are too many waves. Based on 5 waves, there are 9 waves, 13 waves, 15 waves, etc. The Dow Theory is very useful in the trend market, but the definition structure is not accurate enough in the shock market.
4. K-line and K-line combination system.
This type of system puts aside the troubles of indicators and pays attention to the shape and combination of K lines. The most familiar shadow line, cross star, entity line and so on. The combination is the familiar head and shoulders bottom, head and shoulders top and other forms. The advantage of this system is that it can have a good grasp of the trend structure, and a correct signal can basically give a relatively large space for a segment. But the disadvantage is also obvious, the accuracy rate is not high.
5. Resistance, support, and trendline system, this system can be said to be a linear system.
The basis of trading is mainly to rely on the drawing of various trend lines to find the resistance and support levels and the position of the trend structure in the market. The advantage is that the overall grasp of the market is very strong, and the disadvantage is that the trend line needs to be adjusted at any time as the price changes, and the calibration of the market is not strong.
6. Grid system.
This system is used by relatively few people, but it is the template for computer transactions of many foreign investment companies. The grid system is to grid the disk, that is, to conduct quantitative transactions on prices. This is more complicated to say, but simply put, it is to divide a price space equally. (Qlhclub official WeChat public platform ID: qlhclub) The size of a market is divided into 3 grids, 5 grids, 8 grids, and 12 grids. Spatialize the price equally, and then hold and enter the market according to the grid. The advantage is the quantitative operation of profits and risks, and stable profits. The disadvantage is that the overall direction of the market is not well grasped.
The above are basically some mainstream trading systems, and there are some other systems, such as cycle resonance, index resonance, 123 structure, etc., so I won’t talk about those. The reason why mainstream trading systems are recognized by most investors is that each system has very successful traders. But the same system and the same method are not suitable for everyone. The trading system is not the whole of the transaction. In addition to the system, the transaction also involves issues such as risk management, position management, and execution.
Moreover, the above systems are not perfect. While we see the advantages of the system, we also see the disadvantages of the system. It can be said that there are very few successful people who use these systems, not only the problems of the system itself, but also require traders to have high analytical ability and adaptability. We define these systems as complex trading systems. So is there a simple and practical trading system? You can grasp the market trend without racking your brains to calculate and analyze the market trend. Next, I will share my trading system with you. Although it is not suitable for everyone, I hope it can inspire you.
Before explaining your own system, let me explain a few issues, which are also issues that any trader must face.
1. What does a complete trading system include?
The system is the foundation to guide us to make orders, so the integrity of the system determines the accuracy of the transaction. So what does a complete system contain, and what is the core? This is what any trader cares about and takes very seriously. The content of the trading system has the following aspects:
There are four parts: risk control part, trading signal part, entry and exit principle part and profit forecast part.
It is not complete without any part. Everyone has their own trading system, so these parts can be briefly explained.
Risk control, needless to say, the premise of any investment is that the safety of the principal comes first. Controlling risks includes three points: capital setting, position setting and stop loss setting.
Trading signals, this is the core part of our trading system. The signal probability given by the system is relatively high and the space is relatively large. This is the premise guarantee for us to make profitable transactions.
The principle of entry and exit also echoes the signal part. After we have a trading signal and we have formulated a trading strategy, we must have clear entry and exit principles when we start trading.
Earnings expectations, this is the missing part for many investors. Transactions must be planned, the transaction system must be evaluated, and a reasonable profit target must be established, which is the guarantee for stable transactions.
2. The purpose of the trading system is to rationalize and correct our transactions, and to eliminate sensibility and blindness, which requires strict discipline.
When there is a complete trading system, the results are different for different investors. This is not a problem of the trading system itself, but caused by the gap between individual traders. Specifically, the discipline of investors is different. Correct implementation of the system is the ultimate path to stable profitability. There is no discipline, and behaviors that violate the trading system due to emotions or external influences will fail in the long run even if they make short-term profits. Violating the trading system itself is violating the rational systematization of trading.
3. There are two types of signals in the trading system: complex judgment and simple judgment.
The other three parts of the trading system are all developed around the signal system. The signal system cannot have long-term stable and correct signals, so it is impossible to talk about long-term stable profits. What everyone talks about every day is also the signaling system part. We have also seen above that there are many types of signaling systems. (Qlhclub official WeChat public platform ID: qlhclub) There are 6 mainstream systems, and none of the systems is simple. We regard it as a complex signaling system.
A good signal system can give a stable signal. If the signal of a complex system is not stable enough, no matter how complicated it is, it is useless. A simple signal system, as long as it can give a stable trading signal, even if it is very simple, it can achieve stable results. We have seen several simple signal systems: indicator system, using only one indicator to judge market trends and signals, common ones are MACD and RSI; moving average system, 2 to 3 moving averages to judge market trends and signals; track system , BOLL is an indicator to judge market trends and signals. The K-line system simply relies on the combination of K-line and K-line to judge market trends and signals. Of course there are other systems.
The short-answer signal systems all have one thing in common, that is, there are few indicators, and the signals given are simple and clear, and basically look at a cycle by doing a cycle, and there is no contradiction between the signal anchor segment and the cycle in the same cycle. I am also a user of the simple signal system. Those mainstream trading systems were eliminated one by one in the early stage of my trading, and I finally chose the simple signal system to use until now. The following is an explanation of my trading system.
My trading system is named by myself: Single Dragon Trading System. The reason for this name is that there is only one moving average in the signal system. When looking at the chart, it is very vivid, like a dragon swimming in the ocean of prices.
The following is also an explanation of the trading system from four aspects:
1. Risk control
Maximum loss: the total loss shall not exceed 40% of the total funds, and the single stop loss shall not exceed 5%.
Maximum position: 20,000 USD account as an example, 2 lots for short-term positions and 3 lots for mid-line positions.
2. Signal system
Trading Indicators: EMA100 Moving Average
Trading cycle: short-term 5-minute chart, mid-line 4-hour chart
Trend judgment: long position above the moving average horizontal line, short position when the moving average is below the horizontal line
Trading signal: bulls pull back to near the moving average to do long, shorts pull back to near the moving average to sell short
3. Principles of entry and exit
Entry principle: wait for the signal system to give a certain signal
The principle of exit: two times of rushing up and down or turning the moving average
Stop loss principle: exit the market when the moving average turns around
4. Profit Expectation
The short-term monthly profit is expected to be 50%, and the short-term combined with the mid-term monthly profit is expected to be 1 times.
Later, combined with real-time market trends, we will explain in detail while making orders.
Before explaining, let me explain what a horizontal line is.
As the name implies, the horizontal line is a straight line parallel to the horizontal plane, and the moving average is the average line of prices.
Everyone can see the trend of the moving average in the market, either upwards or downwards, because the moving average is the embodiment of the average price, so it is more gentle than the price.
And it has the characteristics of inertia and continuation. We judge the strength of the trend based on the up or down of the moving average, and the reversal of the trend is the direction of the moving average.
Judging whether it is going up or down requires a reference, which is the horizontal line. Above the horizontal line is a long position, and below the horizontal line is a short position.
The specific operation is to mark the current position with a cross to see whether the moving average is above or below the level.
The picture above is the daily chart of gold. It is obvious that the moving average is short. The price pulls back to the moving average and then continues to fall. Now it is in the process of falling.
Let’s look at the 4-hour chart of gold again. The 4-hour is the long position of the moving average, and the price also pulls back to the vicinity of the moving average. We should take advantage of the trend to go long.
Let's look at a 5-minute chart again. The 5-minute moving average has been a short trend below the horizontal line, which also confirms a small short trend after the resistance on the daily chart was blocked and the price fell. Moreover, the bearish trend has continued until now, and the direction of the moving average has not changed.
As a short-term trader, you have to wait for the moving average to give a long direction and then enter the market to do long. Although we entered long orders at midline 1127, stable operators can further use the 5-minute short-term trend to make a confirmation before entering the market. That is to say, wait for the 5-minute moving average to give a long direction, and then enter the market to do long, so that the waiting time is relatively short, and the basic market entry trend will start quickly. Everyone wait for the 5-minute moving average to confirm.
That is, the signal in the moving average chart we enter the short-term. The moving average is above the horizontal line, and long orders can be entered and held.
Many analyzes and forecasts are self-predictions that are separated from indicators, and only then make wrong judgments on the trend. The signal system does not need to be complicated, just make orders for any signal, and does not require complicated analysis and prediction. Go long above the horizontal, short below the horizontal, nothing else. The advantage of the moving average: it will not change rapidly like the K-line. The moving average is slow. Once a trend is determined, it will walk out of a certain space according to the principle of inertia.
The direction of the moving average is the filter. The reason why 99% of traders lose money is what I said at the beginning of the article. The complex system leads to the complexity and contradiction of signal indication. It can only be said that there are so many explanations, because most investors will not calm down to review the results before understanding the market or a system, but subjective speculation.
In addition to long-term opportunities in trading, holding for half a year or more can give you a large space for the entire period. In the middle and short-term, the stability of the transaction is the first priority.
Because of capital constraints, long-term opportunities are operated by institutions and banks, and our general traders mainly operate on mid-term and short-term. Therefore, when trading, try not to let the trend space affect the funds. There are indeed unilateral trends in the market, but don't be envious, let alone greedy. Most of the market is composed of small and mid-range market conditions. Stable profit margins are the basis for our long-term stable profits. As long as the system is suitable for the generality of the market, it is enough to ensure stable profits. Don’t waste too much energy on specificity.
It is not 100% correct, as long as our system can guarantee 100% profit in the final result. Everyone is talking about stable profits. The basis of stable profits is a stable opportunity space. The moving average gives us such a space, and that’s enough. Don’t ask the market to give us both a stable space and a very large space, so that the market will not exist. Necessary, we just need a stable space.
Regarding the market sense in trading, it is necessary to talk about this. Such problems exist for traders who are new to the market or traders who have not been trading for a long time.
This involves what I said at the beginning, emotional trading and rational trading, subjective trading and conditional trading. If we can solve trading problems only by feeling, then there is no need to use indicators and rules. The biggest problem with feeling is subjectivity and guesswork. We often see that there are a lot of predictions in the market.
Every day, there are analysis and forecasts for any trading currency. Here I will tell you in detail the difference between forecasts and strategies.
Prediction: It is a directional prediction of the market based on one's own subjective feelings or one's own analysis technology. Hypothetical judgments about future price movements.
Strategy: It is to make conditional assumptions about the future trend of the market, and to make different transactions according to different conditions. The strategy formulation is not single, but two-way.
The reason why many traders fail for a long time or intermittently is because subjective judgments affect objective operations. That is, subjective emotions and wishes, how the market will go, or how it may go. Once the market trend is inconsistent with your own subjective prediction, it will lead to emotional trading, trading against the trend, the difference between trading with the trend and trading against the trend. As mentioned earlier: trading with the trend, entering the market has a profit margin, trading against the trend, entering the market is a loss, Even a quick loss.
The harm of subjective trading is huge. If you have a clear signal, you don’t follow and execute it, and you would rather believe your own feelings. This is the biggest enemy in trading. It can be said that every trader has his own trading system, but there are very few traders who can fully abide by and implement their own system, and these few traders are the few successful ones in the market.
Most people would rather do complex things to show their intelligence than do simple things to show that they are too ordinary. But the trading field only needs to be simple, and has nothing to do with people's IQ and EQ. It just waits for signals-simple execution-and then waits for new signals. The signal has given you all your instructions, and you still have to doubt and question, and then add your own emotions, the result can be imagined. In fact, doubt is also a denial of yourself.
So let me explain one thing to everyone: Signals are all we need to maintain rational trading. Any subjective prediction and judgment that deviates from signals is a violation of the system and the market.
Everyone has their own signaling system, whether it is simple or complex, it doesn't matter, what is important is the objective implementation of the signaling system, formulating strategies rather than predictions.
A 5-minute trend chart of gold is attached
In my system, the 5-minute short-term trend direction given by the moving average is a short trend.
If I want to make a long order, even if I make a 100-page analysis report, it will not work, because the signal system now clearly gives me a short trend. So what to do? Is it subjective to guess where the bottom is? Or go against the trend and make a long order? Or should I use another indicator to find a basis for my guess? Or continue to analyze and analyze, trying to persuade yourself? Or listen to other people's views? Or take a gamble?
If you have the above psychological fluctuations and emotions, and make you make trading behaviors other than violating the signal, then this is a subjective trading behavior, which is not a problem that the system can solve, but a problem of the trader himself.
The correct approach should be to plan to make a long order, but see that the market is showing a continuation of the bearish trend, then turn on the TV, pour a cup of tea or coffee, and take a rest. After a period of time, when you find that the signal appears, that is, the moving average turns upward, then place a long order, hit one or two waves of profit and exit, and then wait for a new signal.
The whole process does not require much energy and intelligence on your part, let alone trying your best to analyze market trends.
There are similar cases at home and abroad. Those with average intelligence and honesty are more likely to succeed in trading. Simple people can completely solve problems with one or two moving averages or one or two indicators, but smart people need more indicators and methods to solve them. When you can simply wait and execute the system, then your transaction will naturally be simple.
Let me explain the trend and shock problem again, which is also a place where beginners can easily enter into misunderstandings.
The debate between shocks and trends is supposed to be an enduring topic within the trading community. But for a small number of senior or professional investors, the debate between trends and shocks has long been a topic of discussion.
Stable profits come from a stable space. There is room for trends in trends, and room for oscillations in shocks. To correctly treat trends and volatile market conditions, we must fundamentally understand trading.
First of all, I want to ask you a question, what is the purpose of your transaction? How to achieve this goal?
The answer to the previous question is yes, the purpose of the transaction is to make a profit, a stable profit. Whether it is a profession or a hobby, profit is the fundamental purpose of our trading.
The answer to the second question is not uniform. There are many ways to achieve stable profits, and everyone has their own methods and systems. It doesn't matter whether it is good or bad, as long as it can achieve the goal, it is good.
Here are a few main ways to achieve stable profits:
1. Rely on space
2. Rely on quantity
3. Rely on positions
These three methods are basically the mainstream stable profit model, I will talk about them one by one.
1. The premise of profiting from space is that the funds are large enough. For example, for an account of 100 million US dollars, open 10 lots at a time, take one direction, take enough space, there is no risk, even if it is wrong, it will arrive Add one or two positions at the high and low positions, and come back after a pullback. The reason why large space is suitable for large funds is because the risk of low positions is zero, and the 1% profit of large funds is a few years for small funds.
2. The premise of relying on quantity to make profits is to fast in and fast out, and to make profits by small stop loss and small profit. This requires a higher winning rate as a guarantee, but the risk is also very low.
3. Relying on positions to make profits, what you do is stable trading opportunities, and has nothing to do with trends, as long as you give stable trading space under certain circumstances. The risk is also very low.
The above three profit models are described in detail, and the common feature is that the risk is very low. But each model requires corresponding financial and technical support.
This brings us to the trend and shock issues mentioned at the beginning. Since it is a trend, the space for the trend is relatively large and has continuity. The shock is the price going up and down repeatedly within a range.
The trend and the shock have become a contradictory body. If you want to do the trend, you will end up in the shock, and if you want to do the shock, you will encounter the trend. Therefore, traders have repeatedly lost money in contradictions.
The reason for repeated losses is that trends and shocks are not the scope of small and medium-sized capital operations, but the scope of large capital operations in the space profit model. The real trend is the trend at the daily, weekly and monthly levels.
However, most investors look for trends in the 4-hour chart or even a shorter cycle. This is just a wave in the big trend, and it is also the main reason for small and medium-sized funds to make trends and lose money due to shocks.
In the future, when you hear the discussion of trends and shocks, you can laugh it off. Because trends and shocks are not what you focus on and discuss. The profit model that should be paid attention to by small and medium-sized funds is the quantity model and the position model. If you are not afraid of hard work, you can choose the quantity model, but most investors definitely do not do transactions to bind themselves to the transaction, and they must have more leisure time like me.
Therefore, the position mode is my choice, and you can choose according to your own situation.
In the position mode, there is no trend and shock, and the focus is on stable space! Regardless of trends or fluctuations, a stable space is the basis for our stable profits, because profits come from the cooperation of stable opportunities and positions. (Qlhclub official WeChat public platform ID: qlhclub) As long as there is a stable space, the goal of stable profitability will be achieved. Even if it is a trending market, if there is a space of 1,000 US dollars, we will take 20 US dollars. As for the volatile market, even if there is only a space of 30 US dollars, we can still get 20 US dollars of space. These stable spaces are the basis for our stable profitability.
Having said so much, I hope it can inspire and help everyone. It is much more important to pay attention to the opportunity of stable profit than to analyze the market and guess the future trend of the market.
How about a stable profit margin? For example, it is the same as an airplane taking off. We all have this feeling when flying. Before taking off, the airplane needs to accelerate, and it accelerates in a straight line. Fly into the sky.
As traders, specifically ordinary traders, we do not have a comprehensive grasp of market information, and it is impossible to be detailed. Just like spectators outside the airport, we can see the plane getting on and running, we can see the plane accelerating, and we can see the plane taking off. But we are not the captain, and we don't know where the plane is flying and which route it is flying.
The reason why everyone argues and debates is defined as a subjective transaction, just like seeing a plane in the air and then arguing about where the plane is flying. Although it may seem ridiculous, many people analyze and do exactly this kind of thing.
When it comes to our trading, the space we can grasp is the stable space when the trend starts, and it is also the period when the plane goes up and runs to accelerate and then takes off. We are sure. Because the market is like an airplane taking off, after the start speed is accelerated, it will take a while to stop immediately due to the effect of inertia. This period of time we determine is our stable trading opportunity.
I don't care about how the trend will go in the future, or what the general direction of the future is. This is not something I can decide, nor can everyone decide. We just need to know that no matter how the market goes, it will give us some room for stability. As for where the plane flies to, I don't care at all.
Take the trend of gold as an example. If the short-term moving average is in a continuous short direction from yesterday to today, I don't care where it falls. Even if it falls to $5, it is not the focus of my attention. As long as there is no signal for me to go long when the moving average turns around, I will not go long. The empty order is also out of the position of starting short, so it is not short. Then we wait for the moving average to give confirmation before going long. That is, when the plane re-enters the runway, it is when I re-enter. Before seeing the plane enter and run, what we need to do is very simple, just wait.
As long as the market exists, we can do this kind of opportunity repeatedly. I don't care about the others, and there is no need to waste so much energy and time on guessing and imagining. The trend principle of the moving average conforms to the most basic natural law: the law of inertia. The reason for greed is that subjective will is imposed on the trend, and the reason for fear is that subjective will has not been recognized by the market.
Therefore, we only take opportunities within our ability and only do these stable profit margins, and the result will only bring you stable profits. A stable profit is more meaningful than a gambler's several large profits. Stability and long-term This is the difference between a trader and a gambler, and it is also the difference between an objective transaction and a subjective transaction.
The transaction itself is extremely simple, wait for the signal - enter - exit, then wait for the signal - enter - exit. It's just an iterative process.
The reason why many traders who have been trading for a long time or who have studied for a long time are still unable to achieve stability is that the complexity of subjective consciousness makes transactions complicated. Many traders are trying to control the market, or analyze the market, so that the market trend is in line with their own subjective wishes, or in line with their own analysis. The more you want to understand the market and control the trend, the more you will fall into the quagmire of chaos, resulting in subjective trading, emotional trading, trading against the trend and even heavy positions.
Maybe the final result is not to mention stable profits, but it is very difficult to keep the principal. Losses or even liquidation continue to consume your funds and even your rational state.
In fact, the transaction itself does not require brains, let alone complicated analysis and forecasting. It is like waiting for a suitcase at the airport. It is your suitcase and you just pick it up. There is no need to do a lot of analysis and discussion, and neither is other people's suitcases. What you should care about is the things in other people's boxes, not to mention your reasoning and judgment. The only thing needed is a little patience, waiting for the box with your own mark to arrive, then lift it up and open it. It may contain 5,000 US dollars or 10,000 US dollars, just take as much as you want. Even if there are 1 million or 10 million US dollars in other people's boxes, that is not what you need to care about. Give you a $10 million box, maybe you won't be able to carry it, and you will get your own life involved.
Trading does not require brains, let alone your complicated analysis and judgment. The purpose of our system is to simplify the operation and wait for those stable and familiar signals, nothing more. There is no need to mystify and demonize transactions. There is nothing mysterious and mysterious, and there are no mysterious secrets that cannot be mastered. Trading is just a simple skill that anyone can master. In this gold-filled investment market, as long as you are willing to only take your own share, then you can take it forever. It is enough for you to live richly and worry-free all your life. Don't think about creating legends, surpassing masters, becoming heroes in the investment world, and so on. A hero is a lot of people died, but only one or two survived. That kind of small probability and high risk event is not what we traders do. We are just stable investors, not masters, heroes or myths. We just did a good job of the transaction itself, and hope that everyone can pay more attention to the transaction itself and return to the basic mentality of doing things.
Let's talk about stop loss
The stop loss setting is based on different systems, and the given stop loss positions are also different.
However, regardless of mid-term or short-term opportunities, the setting of stop loss is basically based on the short-term stop loss. This is basically a consensus, because taking the short-term as the mid-term is the least risky.
My short-term stop loss is not fixed. Taking short selling as an example, the entry of an empty order must have satisfied my short-term signal. The signal of an empty order is that the moving average goes up from the long side and turns down. For the setting of stop loss, as long as the trend of the moving average does not change, that is, the short order enters the market, the moving average does not turn upward, and a long signal is given, the short order will be held, and then the profit will be out.
If you encounter mid-line and long-term signals, consider holding short-term opportunities as mid-line and long-term. The principle of getting out is the same, as long as the trend remains unchanged, the list will be held.
I only do one or two waves of space after the moving average is confirmed, and the subsequent trend is not my concern, so the situation of stop loss is relatively rare. Even if the trend changes quickly, after the loss is out, just wait for new opportunities.
The signal has a frequency. The weekly signal may be 1 or 2 times in a few months, the daily signal 2 to 3 times a month, and the 4-hour mid-line opportunity 3 to 4 times. In most cases, we still mainly focus on short-term signals, but every If you encounter a signal from the midline within a month, you will also have an opportunity to go to the midline.
The moving average is turned out, and the maximum loss limit is 8 US dollars. This is the whole point.
In a volatile market, there is only a stop loss space of US$3 to US$4 at the turning point of the moving average. To prevent unexpected sudden market conditions, a stop loss of US$8 is enough. Stop loss is basically useless, which is why I have been accustomed to manual stop loss since I have been trading for so long. Because it is following the trend, the general sudden market only appears in the profit. Maybe we expect a profit of 4 dollars. The market suddenly starts and the profit expands rapidly, which only increases some profit space. In the inertial market, the stop loss is used There are very few times. In the market against the trend, no matter how superb the stop loss setting is, it will only send more funds to the market. To solve the problem of stop loss, we must first solve the problem of homeopathic trading.
Keeping the principle of inertial operation, stop loss is basically useless, operating against the trend, no matter how good the technology is, it is useless, stop loss is based on the signal system.
The stop loss is still those two points:
1. Stop loss when the moving average turns and the trend changes.
2. Take gold as an example, the maximum stop loss is 8 US dollars, and there are very few and special trends.
The first point is that one of the principles of our trading is the inertia of the moving average. When a bullish trend starts, it takes time and space to immediately turn into a bearish trend. Enough for us to be out of the game with a profit, and there are very few cases where we need to stop the loss. The second point is that the maximum stop loss is 8 US dollars, which usually appears when big data is released, which will instantly change the direction of the trend and give a larger trend space. Big data can be avoided, such as non-agricultural data, interest rate hikes and interest rates. When these data are released, only short positions are needed. It also avoids the accidental stop loss of 8 US dollars.
Everyone asks the question of stop loss, just like asking what will happen if the account keeps losing money? What will happen if the position is liquidated? What if the market no longer exists? . . . . . Wait, a similar assumption, because I haven't experienced it, and I don't know how to tell you. The problem of stop loss may be a problem that everyone pays more attention to, but stop loss is rarely used, so it is impossible to explain it in detail. The two basic stop loss principles can completely control and avoid risks. Because the system itself has already solved the problem of stop loss. So there's only so much that can be explained.
Whether it is a transaction problem or a stop loss problem, it is actually an operational problem, not a technical problem. These are the established rules, you only need to follow the implementation, and it is not complicated. Trading is equal to the signal of the moving average, and there is no need to use your brain to analyze it. The stop loss also waits for the signal of the moving average, and there is no need to worry about analysis. Follow the map to find out the way, and the old horse knows the way. You don't need the wisdom of Zhou Yu, nor the talent of Zhuge, just simply watch and do.
This picture is very typical (sent to me by a friend), it is necessary to say:
This picture is a typical short turn into a long position, and then turn down to become a short position after the shock.
Because this picture does not mark the cycle, so I can only make two speculations:
First: If it is a line opportunity in the 4-hour chart, if this happens, after the bullish trend is confirmed, there will be at least five 4-hour K-lines above the moving average, which means there is room for profit and time to exit the market.
Second: If it is a short-term opportunity on the 5-minute chart, first look at which time period the signal appears in. If it is not the European market and the US market, then there is no need to look at this signal at all.
If it occurs during the time period of the European market and the US market, and there is such a situation of moving average conversion, no specific calculation is required, and the visual estimation is only 2 US dollars at most, then the long order enters the market, and the trend turns into a short position, then stop the loss Come out, lose 20 points, and make a backhand short order. The market will eventually reward you for following the signals.
In fact, there is no need to give some examples.
First of all, in terms of time, we filter out the afternoon session of the Asian session and the American session, which are the least active in the market, leaving the most active European session and the morning session of the American session.
Secondly, the moving average signal gives us the determined trend direction, which ensures that our transactions are operated in accordance with the trend, and there is a certain profit margin as a guarantee after entering the market.
Thirdly, even if the trend changes, stop loss is enough. Although the probability of stop loss is very low, the principle of stop loss is determined according to the moving average trend, generally 20 points, and the limit is 80 points.
Finally, when the trend changes, just follow the direction of the new trend and follow the trend. The whole transaction is completely a point-and-shoot mode, no need to think, just simple execution.
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