The book "The Turtle Trading Law" introduces a trend-following strategy, which is an investment strategy that basically involves exiting an uptrend before it is about to end, when it has just begun. The specific steps are as follows:
1.Determine the market trend: Determine whether the market is trending upward, downward, or horizontal by looking at the chart. This can be judged by observing indicators such as highs and lows, moving flats, etc.
2.or Sell: If the market is in an upward trend, consider itIf the market is in a downward trend, consider short selling. Turtles are encouraged to short sell when the market is just beginning to shift from a horizontal trend to an upward trend** and when a downtrend is about to begin.
3.Set a stop loss point: In order to control the risk, you need to set a stop loss point, and when the market reaches this point, the position will be automatically closed and exited from the market. Usually the stop loss is set at a certain percentage or a fixed number of points near the entry price.
4.Follow trends: Once you're in the market, you need to keep an eye on the market to make sure you're on the right track. This can be judged by observing ** trends, technical indicators, etc.
5.Exit the market: When the market trend is about to end, it is necessary to exit the market in a timely manner. The sign of the end of the trend may be a break of the high or low of **, or an indicator such as a moving flat giving a sell signal.
Please note that a trend-following strategy is not a surefire approach and requires investors to have extensive investment experience and risk management skills. At the same time, investors also need to choose the right investment strategy according to their own risk tolerance and investment goals.