Underlying Logic of My Trading

Transaction is a business on the surface. Traders buy and sell around price difference. Just because this special business often has leverage, it can magnify profits, losses, and even the mood and humanity in transaction, which gives the transaction a deeper connotation.

Concluding trading experience over these years, I feel that a transaction that can be called complete and successful is to choose a good entry point while waiting for the trend to occur, and to control the proportion of positions to prevent frequent shocks when the positions are being hit. Hold firmly and close the position after reaching the target price. Focusing on trends, shock space and entry points:

1. Potential can be understood as the situation or trend. When a person profits or gains momentum, the burst of energy or established merits are all shining like shining stars.

There is a saying that time creates a hero. The same is true for trading. In a turbulent market without any trend, there may not be obvious gains for a month or two. What you can earn is only a small allowance.

However, once the trend is coming, the price is soaring. With the continuous investment of margin, the floating profit is continuously added, and the gain is a continuous stream of profits.

The above is a weekly K-line chart for crude oil. From June 2016 to June 2017, it fluctuated between 42.77 and 56.85. Once it broke through this shock range, the market was like a torrent of river water, and it went out of control. After the slow bull market of 16 months, it was not until 76.14 that this long upward trend was completed.

Once a trader finds that after passing the one-year test, crude oil cannot fall below the support of 42.77. Considering supply and demand, fundamentals and other aspects, it can be judged that the resistance has been formed. You can continue to buy orders along the trend with small orders and buy orders when you encounter pullbacks. Earning profits, although we have to wait a long time, this trend stabilizes the profit market. Who can resist it?

2. "Gap" refers to: a wave of trends going up or down, naturally will not hit the south wall without turning back, so there must be a return. This change in the market leaves a regular gap, which is usually divided into many levels, mainly including sideways shocks, rising shocks and falling shocks.

Regardless of whether it is sideways or fluctuating upwards or downwards, it should follow the megatrend, and trading is not afraid of shocks. On the contrary, shocks give us a good opportunity to consider the further development of the trend market. For example, in the latest wave of gold prices, in November and December 2019, it repeatedly fluctuated between 1465-1485.

Observing the large cycle, it can be clear that the market is rising without fear. The current surge is falling at the relative bottom. The shock is to make the necessary accumulation for the upward market. Once you see the bottom near 1470 two or more times, you can be in the area. To open a position, the target first looks at the previous high of 1518, then 1530, and uses the recent top and bottom indicators to confirm the final fall of the callback market in the big market. The previous high or low is the target. In this way, it is natural to leave a range for entry and even stage profit.

3. The grasp of the entry point is based on the understanding of the potential. When the direction of the potential and the turbulent consolidation interval of each trend development are clear, you can consider entry point, such as using the daily line and weekly line to clearly define the major trend. The 15-minute K-line chart and the 1-hour K-line chart are used to find the entry point. The top-bottom analysis is also used to find the best opportunity for entry. In the trend trading, even the most experienced traders will not open all positions in one go.

As the soldiers calibrated the target shooting, they usually adjusted the target repeatedly. You can test with a light position, and use the stop loss to determine the appropriate point of entry. Once the first order is established, as long as the market continues to develop in its own direction, there will be the second, third order.

It is better to wait and see when the market is not clear, and then slowly add positions after the tentative list is profitable. The appropriate entry point is the most important means for traders to achieve their profit goals.

Wait quietly like a hunter. Maybe there are mosquito bites and sun and rain during the lurking, but these surroundings should be ignored. When the target appears, aim and lock, press the mouse without hesitation.

Although there is a magnetic base, it is better to wait for the time, but it is better to take advantage of the situation despite the wisdom. Rather than tangled in the daily long or short, always watch the market, worry about when to open a position, browse the website to view the analyst's views and various information, tangled in the heavy mouse and trading tension of opening and closing positions, it is better to let go, and wait patiently for the trend point to enter.

Even if there is a short-term opportunity to open a position, it is in accordance with the foreseeable trend of placing orders. Keep short and trend orders in one direction as much as possible.

After the trend is formed, enter the order while it is waiting or wait for the second observation point: intervene when there is a pullback, and control the position at the same time to prevent margin call. After the trend order is completed, the rest is given to time to let the profit run to its expected point and leave calmly.