May I ask, do newcomers need to quickly establish a trading system or first determine their own trading style?

The importance of the trading system is self-evident, but many newcomers don't know how to build it and how to start to build their own system. In fact, to establish a system is to establish a trading world of your own, to conduct transactions in the world constructed by yourself, to conduct transactions in a field and category that you are familiar with, to find a way of benefiting you, and then continue to Sophisticated to the extreme, this is the logic for system traders to profit in this market.

The most important starting point to establish your own trading system is to first clarify your own trading style, that is to say, first answer who you are and what you want, these two very critical questions.

Establishing your own trading style can be divided into five aspects.

The first aspect is to first establish your own trading cycle. From my own conceptual planning of the trading cycle to distinguish:

Long-term trading, the trading cycle of more than 4 hours. That is to say, your transaction is executed on a period of more than 4 hours. The cycle of holding positions is about 2~3 weeks or even longer.

For midline trading, your trading cycle can be placed on the 1-hour or 30-minute chart, and the holding cycle is about 3 to 5 days (that is, about a week).

For short-term trading, the cycle is about 5 minutes or 15 minutes, and the position is within the day, that is, it is directly closed within the day.

You need to think clearly about your own style, what kind of trading cycle your own trading system occurs in; what kind of time is my average holding position.

In this way, you can more clearly define whether you are a long-term, mid-term, or short-term trader, which is very important in guiding the formation of a system and specific normative rules later.

In the second aspect, you need to think about whether you are a tracking trader or a swing trader. Let’s make a distinction. Simply put, swing traders have a final take-profit position in this market, that is, when I make each transaction, I will leave the market when the market reaches the target position in the future. Get over it.

If you are a trailing trader (i.e. a hold trader), hold on as long as the market doesn't knock out your trailing stop.

These are two completely different position logics, neither one is good and the other is bad. Taking swing traders as an example, the advantage of swing trading is that if the market is in a wide range of shocks, you can make good profits because there is no need for a strong trend. But its disadvantage is that when a strong trend comes, I have already run away, so there is nothing for me behind.

There are many traders who want to do it once and for all in trading, and want to combine the two, everything is mine, which is basically impossible. Essentially, the two approaches are sacrificing one for the other. Everything on the transaction level is actually like this.

The third aspect is the trend or shock. This is actually different from the tracking and band mentioned above. Tracking and band refer to your position style. Now it is considered from the thinking level, are you a trend trader or a shock trader.

What is the level of thinking? If you're a trend trader and you see that the market is going up, you don't want to go short, do you? But for a volatile trader, his thinking is: now that the market has risen so much, is it possible that it will fall?

So these are two completely different ways of thinking. This also leads to different traders having different trading options in each period and at each point.

So you need to think about whether you are a trader with trend thinking or a trading market with shock thinking. It is not recommended to mix the two together.

The fourth aspect is your approach to the market. I simply divide the entry method into two types, because these two methods have very obvious differences.

The first is called the front position entry, and the second is called the break position entry.

In fact, there are other ways to enter the market, which will not be expanded here. Entering the market at the front means that the market has fallen before, so I have already started buying when there is no upward inflection point when it falls. This is called front entry.

Breaking into the market means that the market has formed a bullish inflection point, the rising trend is in the early stage, and then the previous high point is broken somewhere, and I will buy again.

Note that what I am talking about here is the entry method, not the left and right sides.

Neither of these two is good or bad. It doesn't mean that the traders in the front position must have greater trading experience than the traders in the broken position. There is no such thing. All transactions are actually a choice. And sometimes breaking position trading may be more effective in terms of transaction efficiency, setting stop loss, and profit-loss ratio.

Don’t confuse it with trends and shocks here. In fact, a trend trader can also enter the market at an early position. For example, he first defines a wave of trends and takes a fancy to a variety. The bullish trend of this variety is obvious now, so this variety is callback In the process of trading, when it is falling, can I buy directly from the front position? sure. You say I am also a trend trader, right?

The key is to look at your thinking. So can I choose a way to break the position? also can. When the inflection point of the callback is really formed, the previous high is broken, and I break into the market.

Therefore, trend traders can choose to enter the market at the front position, or they can choose to enter the market at the break position, and vice versa.

The fifth aspect is a very critical question, which is the system you want to build and what kind of market environment you want to capture profits . Because a trading system, in the end, has the most suitable period of market conditions. That is to say, it is impossible for a trading system to catch every fluctuation in the market.

For newcomers, these five points can actually be asked and answered by yourself. If you can answer all these questions, and you think it is very simple, you know what your style is, who you are, and your system can capture it. Which paragraph of the market, what you want, shows that you have successfully taken the first step.