- Successful investors must be independent thinkers, do not follow the crowd, and make good judgments. - Bridgewater** Ray Dario.
A complete set of trading rules, divided into three aspects, stock selection, ** sell. Selling is divided into two steps: stop loss and take profit. Most people are stuck in the quagmire of stop loss and take profit, should they sell? It's the most tangled thing. In fact, this is the least important thing, you can only understand this in order to understand the true essence of the trading system?
First, stock selection. The most important point is whether the company will get better and better in the future, which is the key to making money and the source of your confidence. Technical stock selection generally adopts the first defensive method, remember that technical is only used for defense, not as a means of making money. Determine ** (5-10), medium (20-60), long term (semi-annual or annual) according to your own trading preferences. If you have a deep understanding of the fundamentals and technical rules of stock picking, use the fundamentals to make money and the technicals to defend. That's basically the same, and the next buying and selling is not so important.
Second, one thing to note is that you** must be above the defensive line, that is, above your own determination, which is what I often remind everyone, don't go ** when it is**, the bottom will never be finished. On the safety line, that is a matter of mentality, called buying slowly, buying in separate positions, and buying in batches.
Three, sell. If the stock price falls below your defensive line and stop the loss in time, there is nothing to think about, and there is no room for negotiation. If the stock price rises to reach your take-profit target, or your short-term has become a hot topic, then use anti-sentiment trading and sell to take profit first. At this time, you can take profit in batches, and this is the truth that you are not greedy if you win. These two levels test the mind, and have nothing to do with technology, so I often say that you have to trade your plan, and this is the reason for planning your trade.
Again, when choosing stocks, you have done a good job of defending the ** and stop-loss line, so that in the next trading, you can do not panic and deal with it calmly. One minute on the stage, ten years off the stage, and the same is true for trading, never in the intraday or off-market.
Maybe most people don't understand this very well, now the market environment is very poor, everyone is very depressed, but I do my best to share my years of trading experience with you, although there are few people who can help, but at least can increase the confidence of a small number of people, which is a very happy thing for me. Thank you all, and we'll see you next time.
Learning the basics and summarizing experience can be boring but useful for a lifetime. — Charlie Munger.