Many investors often say that they should do trend trading and follow the trend, but they often can't do it in practice. Trends can be divided into primary trends, persistent trends and ending trends. There is no absolute position for opening positions, only the absolutely correct direction. For these three kinds of trends, investors should have different operating methods. For the emerging trend, they intend to grasp and analyze whether this trend can be sustained. For the continuous trend, we should pay attention to our patience in holding positions; For the closing trend, on the basis of the first two steps, we should have a thorough understanding of the fundamentals, technical aspects and funds of the market, pay attention to closing positions and close positions when the market panics.
Why do some friends always waver when the market price fluctuates greatly, only to find that they have missed a great investment opportunity afterwards? Why do they often go out early in the market and chase up and down when the trend fluctuates? This requires you to have enough patience to wait after opening the position when judging the trend. Many friends blindly stop losses in temporary direction errors and close their positions in small profits after the trend is established. None of this is desirable. Because it is difficult to grasp the strength of rebound in a small range and the depth of adjustment, as long as it is not forced across the board or panic, you must give yourself a width of moving stop loss, otherwise you will run out of your principal in the stop loss.