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Trading system = at least one opening and closing rule + capital management. The opening and closing rules are a set of rules for where to open a position, where to stop loss, and where to take profit. For example, we just said that we should find support levels to open long positions in an upward trend, find pressure levels to short positions in a downward trend, or open long and short positions after a breakthrough. These are all rules for opening positions. The opening and closing rules are like the martial arts moves in martial arts novels. This is not the most important thing. Just like Gusu Murong Fu in Tianlong Babu, he gave his own way to others. He knew martial arts from all schools and sects in the Jianghu. Although he was as famous as Qiao Feng, he could not even beat Jiumozhi. Capital management is a set of rules for how many positions to open, how much to increase positions, how much to take profit, and how long to hold positions. Capital management is more like the internal strength in martial arts novels. Internal strength is the most important. For example, in Yitian Tulong Ji, after Zhang Wuji learned the Nine Yang Magic Skill, he could basically learn Shaolin Dragon Grasping Hand and Qiankun Da Neng Yi after watching them once. Among them, Zhou Zhiruo practiced the Nine Yin Bones Claw in the Nine Yin Manual, but was still defeated by the yellow-clothed woman who was the descendant of Yang Guo. Because the Nine Yin Bones Claw is the lower volume of the Nine Yin Manual, it is an external martial arts. Although it can be practiced without the internal skills in the upper volume, it is easy to go astray if you skip the internal skills and practice the Nine Yin Bones Claw directly. Zhou Zhiruo was eager to achieve success and did not practice the internal skills. There is a scene in The Return of the Condor Heroes where Yang Guo knows Ouyang Feng's Toad Skill, Hong Qigong's Eighteen Dragon Subduing Palms, Dog Beating Stick Skill, Huang Yaoshi's Jade Flute Sword Skill, Ancient Tomb School's Jade Girl Heart Sutra, etc. All of these are the highest martial arts in the martial arts world, but why is Yang Guo still far from being a top-notch master in the martial arts world at this time? Until Yang Guo was enlightened by King Jinlun, King Jinlun said that Yang Guo had a good martial arts, with many tricks, but he was broad but not refined, and he should concentrate on studying one of them and practice it to perfection before he has a chance to seek revenge on Guo Jing. Later, Yang Guo created the Desolate Palm, which led to his later achievements in martial arts. It is the same in trading. Many people spend their whole lives learning various techniques. Have they made a lot of money with so many tricks? So those who teach you various technical indicators are just shamans. Someone telling you what the right path is is far more important than teaching you these things. What did King Jinlun teach Yang Guo?We have already talked about the rules of opening a position, stop loss, fund management, and opening a position. Now let's talk about how to stop profit. I believe many people are very concerned about how to stop profit. There are two ways to stop profit: 1. Active stop profit. Active stop profit is a left-side transaction. I think it is almost 12 and I will reduce my position. For example, if the K-line trend deviates too far from the moving average, or the sentiment is too hot, there is a high probability that it will fall back or reach the peak. The advantage of active stop profit is that if you make the right judgment, you can get all the profits. The disadvantage is that if you make a wrong judgment, you will miss out. 2. Passive stop profit. Passive stop profit is a right-side transaction. It means waiting for the market to fall out of the upward trend before stopping profit. How do you count the upward trend breaking? For example, if it falls below a certain moving average, you think the rise will end and turn to a downward trend, or it falls below the neckline. The advantage of passive stop profit is that if the market is large, you will not miss out. The disadvantage is that most of the market is not large, and in many cases you can only get a little bit. There is no absolute good or bad between active stop profit and passive stop profit. Each has its own advantages and disadvantages. There is also a very powerful stop-profit method, called no stop-profit. Any logic for judging the top and bottom has its shortcomings. Whether it is left-side trading or right-side trading, it is actually a probability. You may judge that it has reached the top, but it may not have reached the top. For example, four or five years ago, could you have imagined that it could rise to 69,000 US dollars per coin? Seven or eight years ago, it was even more impossible to imagine it, when the price was only a few dollars per coin. Only by never stopping profit can you get this increase. Although not stopping profit is awesome when encountering a super big market, it can allow you to get the biggest and most unimaginable profit. As long as you are right, you don’t have to work for a few years, but the disadvantages are also obvious. 99% of the market is not so big, and most of the time you can’t make money.