2023.8.24 Trading Principles
There is a very important principle in trading: don't make small money, don't lose big money.
It’s a simple 8 words, but it’s actually very difficult to do. For example: You place an order for 2W, and the price rises to 21,000 after the opening. You are very happy, stop profit, and earn 5%. As a result, the market keeps rising to 2. 5....You made 5%, but lost 50%;
Then you confess that you want to make a lot of money, and this time you are determined not to make a profit. Then the market returns to 2W, and you place another order. After the order is placed, it rises to 21,000. You confess to yourself, learn from the last lesson, and hold on to the key. You made a lot of money, but the market returned to 2W and fell below 2W to 19500. You stopped your loss. It's so difficult for me! Many people are constantly switching between this dilemma throughout their lives and cannot get out of it. So is there any way to make money in both big and small market conditions?
No, you have to choose one of the two. I usually choose not to make a small amount of money. I can't do what I said 100%, and no one can do it 100%, but I can tell you the correct concept. How much you can achieve depends on your personal cultivation. Each of us can only do this. The concept is a certain ratio, and try to increase this ratio as much as possible.
That’s a lot to say, let’s get back to the point.
Technical aspect:
Daily line: The previous thinking remains unchanged, reaching the 21,000 line in mid-to-late September
Four-hour line: This price will reach the 27500 line, then fall again, and the form will take a complete form of A, B, and C.
15-minute line: It looks like there is a rebound, but it is estimated that it can only rebound to around 26,700 and cannot break yesterday’s 26,800
Operation plan: continue to hold 31,300 short orders, continue to hold 25,300 long orders, wait and see