The key points of stock trend trading operations are explained based on the core ideas of "The Art of War".

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1. Know yourself and know your enemy, a hundred battles without danger (market analysis and cognition)

Interpretation: In stock trend trading, 'know yourself and know your enemy' is reflected in understanding market trends, industry dynamics, as well as one's own trading strategy and risk tolerance.

Application:

1. Knowing the market: Determine the market trend through technical analysis (such as moving averages, trendlines) and Fundamental Analysis (such as industry trends, economic indicators).


2. Knowing yourself: Identify your risk tolerance, capital size, trading plan, and psychological qualities.


Implementation:

Use 20-day, 60-day, and 200-day moving averages to determine the short-term, medium-term, and long-term market trends.

Ensure you have a clear trading plan, including entry points, stop-loss points, and target prices.






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2. For those who engage in battles, succeed with flexibility and strategic planning.

Interpretation: In trend trading, it is necessary to follow the mainstream trend (positive harmony) and seize sudden opportunities (strange victory).

Application:

1. Positive Harmony: Go with the trend, follow the core logic of trend trading, i.e. buy in an uptrend and wait in a downtrend.


2. Strange Victory: Focus on market abnormal fluctuations or special opportunities, such as entry opportunities when breaking through key resistance or support levels.


3. Implementation:

Set up an alert system, execute trades when the stock price breaks through key resistance or trendlines.

During the trend acceleration phase, increase positions moderately to maximize profits.






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3. The top priority is to strategize and plan, followed by alliances, then attacking with troops, and finally besieging the city (strategic hierarchy and risk management).

Interpretation: In trading, it is important to prioritize strategic thinking (strategy formulation), followed by interacting with the market (observing volume, capital trends), and only then engaging in actual trading (placing orders to buy or sell).

Application:

1. Strategize: Develop detailed trading strategies, including trend confirmation, entry, exit, and risk management.


2. Alliances: Confirm whether the strategy is reasonable by observing market sentiment, volume-price relationship, capital trends, and other dynamics.


3. Troops/Assaulting the City: Strictly adhere to the strategy during actual trading, unaffected by short-term market fluctuations.


4. Implementation:

Gradually build positions when breaking through an upward trend, and gradually reduce positions at higher levels.

Set strict stop loss for each trade (such as 6%) to ensure fund safety.






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Interpretation: Avoid exposing your "weaknesses" in the market (such as trading with full position at once), reduce risk through phased operations.

Read: Avoid exposing your own "weaknesses" in the market (such as trading with full position at once), reduce risk through phased operations.

Application:

1. Hide Weaknesses: Diversify risks through fund management to avoid huge losses from one-time heavy positions.


2. Intangible: Do not rush to increase positions or bottom fish before confirming a trend reversal, wait for clear signals from the market.


3. Practical Operation:

When entering the market for the first time, only use 25% of the capital, gradually increase the position to 50%, 75%, until fully invested.

Decide whether to sell for profit in batches at short-term highs based on the strength or weakness of the trend.






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5. Using strategies without direct conflict (taking profit and stop-loss).

Interpretation: In stock trading, 'taking profit and stop-loss' is a method that does not confront the market. By setting reasonable profit-taking and stop-loss points, actively exit the risk zone.

Application:

1. Stop-loss: Set the maximum loss limit for each trade, such as an initial stop-loss of 6%.


2. Take profit: Exit in batches with profit when profits reach 20% or at key resistance levels.


3. Operation:

During the trend running process, use the 20-day moving average as a dynamic stop loss to protect profits.

Once the stock price falls below the 60-day moving average, exit all positions immediately.






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6. Speed is the essence of war (trend trading and fast response)

Interpretation: The success of trend trading lies in timely adapting to market changes and quickly executing trading decisions.

Application:

1. Trend trading: Only operate when the trend is confirmed to avoid bottom fishing or counter-trend operations.

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