Methods and commandments of band trading

If you really want to stay in the market, it's complicated and simple, because as long as you persevere in the following points, it's hard not to win.

01

First, always only look at the weekly and daily lines, don't look at the cycle below the daily line (as the middle line);

Second, only use moving averages, trend lines, necklines, false swings, retracements, and ignore anything else;

Third, the total position should not exceed 50%, and the single (commodity) position should not exceed 30%.

Fourth, try to open a position, wrong stop loss, right add position.

One more thing to add: it is better to trade in the original direction, and finally only get caught once, rather than grab a small rebound and get caught again and again.

02

In fact, it is not difficult to find a good opportunity in trading, but it is difficult to make good use of the opportunity. The reasons for building the right warehouse but failing to hold the warehouse are as follows:

The first is that the position is too large, and it cannot resist fluctuations, so it has to run away.

The second is that there is no advantage in the position of the warehouse, and it encountered a rebound as soon as the warehouse was established and was squeezed out;

Third, there is no basis for setting position squaring, and every day, emotional running in and out;

Fourth, they couldn't see the direction and came in and out of it.

03

I suggest you leave only the 300-day, 150-day, 75-day, and 30-day moving averages on your chart, and always trade in the direction of the 30-day and 75-day moving averages.

As long as the direction of the moving average is clear, when the price is close to the 30-day and 75-day moving average, the trend line and neckline of each band are broken before the position squaring; the position is always less than 30%; only when the trend line, neckline, and moving average are broken and confirmed at the same time, then trade in another direction.

In addition, the opening should be carried out in batches. If you make a mistake, escape in time. If you are right, you will increase the position gradually, and hold the position patiently until the price breaks through the trend line and neckline before positioning squaring. Also, don't care about the fundamentals and price levels, just trade with the trend.

04

Let me give you a formula. If you understand it, you will definitely make a lot of money.

Investment profit and loss = opportunity success rate × opportunity position rate × position profit and loss rate.

Make an explanation: you must always ensure that your success rate when entering the market is greater than 50%, then you must follow the trend and withdraw to open a position; you must ensure that the position when making money is greater than the position when losing money, then you must make money to increase the position, and you must never increase the position when losing money; you must ensure that the profit margin is greater than the loss margin, then you must ensure that you can stop the loss in time and let the profit run.

05

A few commandments for investing and trading:

Quit irritability: do not move without reasonable conditions for building or positioning squaring;

The first point: Generally speaking, when you don't understand the direction - that is, the price is in a convergent pattern - you should look at the weekly and monthly lines, and try to build a position along the edge of the pattern in the original direction. If the pattern breaks through, you will increase the position; if you break through in the opposite direction, you will backhand. This way of organization is easier to operate. Try not to operate in both directions, and finally get yourself exhausted. If you really break through, you dare not do it.

The second point is that at any time, do not easily determine that the direction has changed. In other words, it is better to follow the original direction than to easily turn to the trade. Because the real turn is actually very small, it is estimated that only 20% of the earliest trading opportunities are accounted for, and the rest are homeopathic opportunities. Why should we give up the most likely opportunities and seize the less likely ones?

Third point: a good mindset does not come out of thin air, it must be cultivated. This practice does not refer to chanting sutras, but to practice - to constantly cultivate your feelings through trading, by summarizing positive and negative experiences. This must take two or three years. When your method becomes your habit and character, your mentality will naturally be good. If your mentality does not become your habit and character, if you are still talking about the importance of mentality, then it is certain that your mentality is not good.