The essence and core of trading

First, the core of the transaction:
1. Futures Trading is not a commodity, but human nature: adhere to consistent trading discipline and trading strategy;     
2. The essence of Futures Trading = strictly control the profit and loss ratio, closely follow the market trend, and test and capture the big market with continuous small losses;
3. Successful Futures Trading = an effective trading system + correct execution + effective capital management;
4. The key to stable profitability = establish a set of trading systems suitable for yourself: an indicator + an idea = a trick;
5. Effective money management: Futures Trading is like boxing, your boxing ability is not your ability to fight but your ability to resist blows.
6. Correct execution is essential for successful Futures Trading.
7. The wise man wins before fighting;
8. The key to making a lot of money: long term trading + increasing the position along the trend = small losses and big wins;
The trend following capital usage is 30% (with 10x leverage as an example), as detailed below:
1. Compound position = 10% of test funds + 20% of market maker funds + swing trading plus funds (pyramid plus: 10%, 5%);
2. Test fund management: floating lot size (1,2,4,... Regression to 1 after correct);  
3. Enter the market in batches and leave the market in batches; different positions are treated separately;
4. After the long-term signal is "bought": only go long and not shorting; after the long-term signal is "sold": only shorting and not go long; insist on opening the Close Position according to the signal;
2. Some ideas in trading:
1. The market is regular;
2. The price reflects everything;
3. The price runs in a trend: the strong are always strong, and the extremes must be opposed;
4. History repeats itself;
5. Compound interest should be long-term rather than vigorous;
6. Follow the laws of economy and military: be cautious in war, protect yourself, win all, know the situation and recognize the situation, and win better than easy to win;     
7. The price is the only basis, the indicator is only an auxiliary, believe what the eyes see, don't believe what the ears hear: the price is the most real, don't listen to the news casually, keep an eye on the price changes, long see what it is, ask less why, don't ask the reason too long;
8. The risk of losing long is controllable, and the market has the final say on long profit (don't do it the other way around), and limiting the risk is the first place in any case;
9. In the case of long, the direction of pump fall is uncertain, but there must be a big dump after the big pump, and there must be a big pump after the big dump, and the long short cycle is determined; after the trend is formed, the direction of the pump fall is determined, but the rhythm of the pump fall is uncertain; after the market equilibrium breaks through, the inertia extension of the price is certain but can be extended long less is uncertain;   
10. Fine, rigorous, concise, hazy and harmonious;
11. The road is simple, the royal road has no way, all laws return to nature, and all complexity returns to simplicity.
12. Be patient to find the right speed to make money;
13. Test and capture the big market with continuous small losses: the first Light position, increase the position along the trend;
14. Completely abandon the [strategic] Build a Position thinking and establish a trend-following Build a Position thinking: actively abandon the first and last paragraphs, which are the most expensive markets in the world.
Principles in trading:
1. Strict entry and wide exit: be resolute when entering the market, do not enter the market when Close Position hesitate; if you have doubts, you will to leave the market, regard every pause as the head, make a profit first, and then enter the market when you understand it;
2. The entry and exit should be completely based on the system signal, firmly executed, and recorded: price, time, potential income, risk, success rate, actual profit and loss;
3. Don't feel like you're more Satoshi than the system. No fear, no greed, no quick success, no Satoshi, no buying the dips, no short at the highest price;
4. Be willing to win, be willing to lose, and be good at losing.
5. Do simple quotes in a simple way, and repeat simple things is the basis for success. 
6. If you encounter a fall after buying, and rise after selling short, you should be wary of whether you are wrong about the general trend, or it may be during the long short turning point of the market: if you make a mistake, you must admit your mistake, Capitulation it early, and don't predict;
7. Lock one or two long-term targets, conduct in-depth research, and find one or two short-term short term trading targets;
8. Always set a stop loss level, strictly stop loss; no full position, no heavy position;
9. Don't absorb because the price is too low, and don't sell short because the price is too high, only obey the signals of the trading system, and only operate the system that sends out the signal;
10. When you lose, you must not increase the amount of gamblers in order to seek to spread the cost;
11. There is no long short in the heart, go long shorting freely, and only trades according to the direction of the system.

3. Mentality in trading:
1. Calm, confident and happy;
2. Keep learning and reflecting;
3. Note: When making continuous profits and continuous losses, you should be sober, rational, not greedy, and not afraid
Money Management in Trading:
1. Control the total risk, the use of funds is generally 30% (take 10 times leverage as an example), and the general trend is definitely not more than 50%, leaving sufficient margin;
2. The first Light position, learn to increase the position with the trend, and reduce position in a timely manner;
3. Compound position: 10% of test funds, 30% of follow-up funds, and 20% of swing trade funds.

Fourth, the entry point in the transaction:
The signals of the trading system are mainly considered, according to which the following points are considered:
a. Timing: 1. Shorts, when an important cyclical inflection point for mutual verification of time and indicators appears;
2. Carry out homeopathic follow-up operations long wick candle when the pattern or trend breakthrough is established;
3. The secondary retracement wave reaches an important percentage position of the main trend retracement, and enters the market when the falls stabilizes or the rebound encounters resistance;
4. At an important long short watershed, the price breaks the balance after the backhand increase trade
b. Method: 1, long wick candle to support level or resistance level breakthrough entry; fakeout breakthrough backhand;
2. Relying on support go long to buy or relying on resistance shorting to sell.
Exit points in trading:
The signals of the trading system are mainly considered, according to which the following points are considered,
1. Strict in and wide out;
2. Inflection point: K-line combination, change of trend rhythm and rate, change of quantity and energy, amplitude measurement, divergence of oscillating indicators;
3. Shift acceleration and deceleration of trend market: the market tends to reverse after two acceleration and deceleration;
4. Method: Exit the market when there is an entry signal in the opposite direction of the original Holdings; the entry basis of the original Holdings disappears and leaves the market.
Increase the position in trading:
a. Timing: 1. The market is developing in the direction of greater returns, that is, the shift is accelerating;
2. The market is moving in the direction of less risk, that is, after the retracement, it runs along the original trend      
b. Principles: 1. Increase the position only when there is a profit, and do not increase the position when there is a loss;
2. "Pyramid" to increase the position, avoid "inverted pyramid" to increase the position;
3. The increased Position is treated separately from the original Holdings, and a new stop loss level and target level need to be set, and the entry basis of the two is different, and the treatment method is also different
Reduce position in trading:
a. Timing: 1. The risk increases, the trend weakens or the stability is threatened, that is, the trend is reduced position when there are signs of potential changes and risks;
2. The market profit is drop, and the price is reduce position when the important resistance level is blocked or stabilized in the important support level
b. Principles: 1. The principle of flexible disposal; 2. The principle of handling the bottom position and the short term position separately

5. How to find support and resistance:
1. Important highs and lows in the early stage;
2. supporting line or pressure line;
3. Important moving averages;
4. Intensive transaction area;
5. shorter gap;
6. Gold play people for suckers percentage drawdown and percentage extension (38.2%, 50%, 61.8%)
Long term trading:
1. Increase the position along the trend; 2. Compound positions; treat them separately
Swing trade:
1. Trend following, system signal; 2. Use 30% of funds (take 10 times leverage as an example), do not increase the position, do not reduce position. #比特币# #ContentStar#