How to establish your own trading system (2)
$Tesla (TSLA.US)$
$Apple (AAPL.US)$
$The Mosaic (MOS.US)$
The first step in investing is to protect your principal, and the second step is to make money.
For most people, the margin of error in investing is actually very low. The reason is simple because the capital is limited. If risk control and position management are not done to protect it, the capital may be lost.
Therefore, ensuring the safety of the principal is the primary goal that allows us to survive and achieve stable profits in the market. When trading in the long term, there will inevitably be times when judgments are incorrect. How can we control risk to keep losses within a relatively small range? In addition to learning basic technical analysis methods, you can also use the following trading strategies:
1. Entry: It is necessary to prepare the trading plan in advance and strictly implement it, set the entry price, and set the stop loss price reminder.
2. Bargain hunting: Start with a small position to bargain hunt (for example, if you plan to buy 1000 shares of this stock, start by buying 200 shares as a tentative bargain hunting).
3. Adding positions: After the overall trend emerges, gradually add positions in the middle to maximize profits.
4. Stop loss: Once the stop loss level is breached, it must be strictly implemented, including setting the stop loss level below the opening price. Remember to always set a stop loss! (Key levels have strong support, once breached, institutions will short sell accordingly)
5. Take profit: when the profits in hand are eaten up by 50%, take profit and leave the market, and remember not to let the profits turn into losses.
6. Trailing stop: for stocks with medium-term layout, when the profits reach 3%-5%, you can start trailing stop, which means taking profit when the profits retract by 50%, and protecting the funds based on the stop loss level when the profits have not yet been realized.
In the recent volatile market, it's difficult to grasp the situation. It's a good choice to take the time to learn and not participate in trading.
$Apple (AAPL.US)$
$The Mosaic (MOS.US)$
The first step in investing is to protect your principal, and the second step is to make money.
For most people, the margin of error in investing is actually very low. The reason is simple because the capital is limited. If risk control and position management are not done to protect it, the capital may be lost.
Therefore, ensuring the safety of the principal is the primary goal that allows us to survive and achieve stable profits in the market. When trading in the long term, there will inevitably be times when judgments are incorrect. How can we control risk to keep losses within a relatively small range? In addition to learning basic technical analysis methods, you can also use the following trading strategies:
1. Entry: It is necessary to prepare the trading plan in advance and strictly implement it, set the entry price, and set the stop loss price reminder.
2. Bargain hunting: Start with a small position to bargain hunt (for example, if you plan to buy 1000 shares of this stock, start by buying 200 shares as a tentative bargain hunting).
3. Adding positions: After the overall trend emerges, gradually add positions in the middle to maximize profits.
4. Stop loss: Once the stop loss level is breached, it must be strictly implemented, including setting the stop loss level below the opening price. Remember to always set a stop loss! (Key levels have strong support, once breached, institutions will short sell accordingly)
5. Take profit: when the profits in hand are eaten up by 50%, take profit and leave the market, and remember not to let the profits turn into losses.
6. Trailing stop: for stocks with medium-term layout, when the profits reach 3%-5%, you can start trailing stop, which means taking profit when the profits retract by 50%, and protecting the funds based on the stop loss level when the profits have not yet been realized.
In the recent volatile market, it's difficult to grasp the situation. It's a good choice to take the time to learn and not participate in trading.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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