Taking advantage of the trend is the most direct embodiment of the law of market movement, which is the trend. The only way to treat the trend correctly is to follow suit. This is the first magic weapon to make money or even survive for a long time in the speculative market.

Stanley, a famous American investment expert? Crowe once said: "The most profitable and reassuring operation is always the time to operate according to the general trend at that time." The operation that pays the worst and feels the most pressure is always when I build or hold a contrarian loss position. "When a novice learns to trade, it is of great value to establish the direction of price operation for the overall success or failure of the transaction. Determine the direction through objective analysis, then jump into the trend, and stay in it all the time, go with the flow. As long as the trend continues to be favorable to you, you must make a profit by holding positions. Learn to trade in the direction of the trend, and in this process of ups and downs with the trend, through risk management, obtain excellent operational results. This is the essence of following the trend.

For beginners, the recommended analysis tool is the moving average. As a concise and clear trend indicator, the moving average has a good effect in following the trend and won the favor of practical experts. For specific application, please refer to granby's Eight Rules of Average and Triple Screen Investment Theory.

Second, grasp the big and let go of the small

For example:

Suppose our risk-return ratio is 100 points: 300 points, and the success rate is 70%. This means that when we trade 10, we gain 300 points and lose 100 points, so the overall profit will be 300x7- 100x3= 1800.

Suppose our risk-return ratio is 300 points: 100 points, the success rate is 90%, each loss is 300 points, and each profit is 100 points, then the overall profit will be100x9-300x/kloc-0 in/kloc-0 transactions.

Considering these two core factors, the transaction with smaller risk-return ratio and higher success rate is what we should strive for.

Third, limit losses.

Limiting losses, preserving principal, and holding profitable positions for as long as possible on this premise, thus increasing profits, is the third magic weapon to make money by speculation.

Risks go hand in hand with traders, and novices should have a clear understanding of risks. After setting a stop loss, traders will have a clear quantitative understanding of the bottom limit of the loss, which is conducive to maintaining a stable trading psychology.

While limiting losses, we should learn to make more money to make up for the losses caused by mistakes. Only when you stay for a long time can you make big money. Only when you make big money can you make up for the losses caused by a lot of mistakes and have a balance. This is the final trading profit.