Making money through trading is not actually easy. To be profitable long-term, you need an effective trading system—and you must continuously improve and refine it. So what exactly is a trading system?
In essence, it’s gradually turning habits that you could trade however you want into a set of limited, rule-based, constrained habits.
How do you enter? How do you exit? How should stop-loss be set? How should take-profit be set? When facing different situations, how should you act? In a bear market, how do you handle entries/exits and stop-loss/take-profit? In a bull market, how do you operate? And what about when the market is range-bound?
Every step can be broken down into many details.
Just as a simple example: stop-loss—when to stop out. Does the position size affect how you set the stop-loss? Should you stop out in batches? What if, after stopping out, the price returns to the original level—if the pattern recovers, should you enter again? After entering, how should you set the stop-loss? Should it still be at the original position?
See? One stop-loss can lead to a whole lot of related questions. Are these questions supposed to be decided flexibly based on subjective judgment, or should they be determined by a set of indicators, patterns, and discipline?
And to improve and refine a trading system is to continuously adjust along this process—so that it can help us achieve stable profitability.
There are countless books on technical analysis on the market.
K-lines, moving averages, chart patterns, Elliott Wave theory, Chan Theory, Fibonacci, and so on—there are many books.
There are also books about teachers’ psychology and cognition, etc.
My trading system mainly comes from some books and my own summaries from practical trading, which I then完善 and improve.
I’ve read many books of the types listed above, but truly, I don’t think many of them are actually useful to me.
So I’ll list them here, as a reference for friends who want to build a trading system.
1. Making a living from trading
2. Part of Chan Theory
3. Moving average technical analysis
In fact, my trading system is built using these as the basis for technical analysis, combined with some indicators that are commonly used in practice.
I’ve read these books at least 3 times—and it’s not just reading. It’s deep note-taking, live trading records, and feedback, so that I can adapt to the rhythm of the crypto market.
Books are knowledge. But what matters is: to what extent you can digest, internalize, and apply that knowledge in real trading practice.
Don’t expect that after reading a book once, understanding a few indicators, and being able to say a few fancy terms, you’ll think you can “take off.” Always respect the market!
$HYPE
$PUMP
$UNI
In essence, it’s gradually turning habits that you could trade however you want into a set of limited, rule-based, constrained habits.
How do you enter? How do you exit? How should stop-loss be set? How should take-profit be set? When facing different situations, how should you act? In a bear market, how do you handle entries/exits and stop-loss/take-profit? In a bull market, how do you operate? And what about when the market is range-bound?
Every step can be broken down into many details.
Just as a simple example: stop-loss—when to stop out. Does the position size affect how you set the stop-loss? Should you stop out in batches? What if, after stopping out, the price returns to the original level—if the pattern recovers, should you enter again? After entering, how should you set the stop-loss? Should it still be at the original position?
See? One stop-loss can lead to a whole lot of related questions. Are these questions supposed to be decided flexibly based on subjective judgment, or should they be determined by a set of indicators, patterns, and discipline?
And to improve and refine a trading system is to continuously adjust along this process—so that it can help us achieve stable profitability.
There are countless books on technical analysis on the market.
K-lines, moving averages, chart patterns, Elliott Wave theory, Chan Theory, Fibonacci, and so on—there are many books.
There are also books about teachers’ psychology and cognition, etc.
My trading system mainly comes from some books and my own summaries from practical trading, which I then完善 and improve.
I’ve read many books of the types listed above, but truly, I don’t think many of them are actually useful to me.
So I’ll list them here, as a reference for friends who want to build a trading system.
1. Making a living from trading
2. Part of Chan Theory
3. Moving average technical analysis
In fact, my trading system is built using these as the basis for technical analysis, combined with some indicators that are commonly used in practice.
I’ve read these books at least 3 times—and it’s not just reading. It’s deep note-taking, live trading records, and feedback, so that I can adapt to the rhythm of the crypto market.
Books are knowledge. But what matters is: to what extent you can digest, internalize, and apply that knowledge in real trading practice.
Don’t expect that after reading a book once, understanding a few indicators, and being able to say a few fancy terms, you’ll think you can “take off.” Always respect the market!
$HYPE
$PUMP
$UNI