A beginner can execute a 'trend following' basic strategy
Today, I will share an idea that is most suitable for office workers/beginners: trend trading + wait for confirmation before entering the market.
Core idea:
First define the trend
It can be simply defined as: when the price stands above key moving averages (like the 50/100 moving average) on the 4-hour level, it is considered bullish, and vice versa for bearish.
Don’t try to pick bottoms or tops every day; instead, accept 'mid-segment profits'.
Only look for positions during pullbacks
When the trend is upward, wait for the price to retrace to previous highs/support areas + volume reduction, then consider going long.
When the trend is downward, wait for the price to rebound to previous lows/resistance areas + rising without volume, then consider going short.
Stop-losses are always outside the structure
Place long stop-losses below support levels at a safe distance;
Place short stop-losses above resistance levels.
As long as the structure is broken, accept the stop-loss instead of 'waiting a bit longer'.
This strategy has a characteristic: there are not many signals, but the win rate is relatively stable and friendly to the mindset.
You don't need to look at the 1-minute chart every day; just cultivate the habit of: following the trend + waiting for pullbacks + having stop-losses.
