A Brief Discussion of Trading Techniques

“Trading is both an art and a form of cultivation”

This afternoon, I took some time to write a trading article—A Brief Discussion of Trading Techniques! It also summarizes my trading experience over the past 10 years, which I would like to share with everyone.

Trading is the stepping stone and cornerstone for those in finance, as well as a form of self-cultivation; in my eyes, trading is a science and a test of my understanding. Wealth is the result of testing what I understand; wealth is compensation for understanding, not a reward for hard work!

Beginner traders: learn to read naked K-lines, understand what a Pinbar is, and learn the meaning of each K-line and combinations of K-lines. The K-lines on the chart can speak and provide you with all the analytical data you need; learn to identify volume-price divergence, MACD divergence, golden crosses and death crosses, and recognize the overbought and oversold signals of RSI and KDJ; use MA + EMA + Bollinger Bands to find support and resistance, etc.

Intermediate traders: learn to apply Western harmonic patterns (Gartley, Bat + Butterfly, Crab + complex Cypher + Shark); identify bullish flags, bearish flags, and other box structures, and flexibly use Fibonacci and the Vegas Tunnel to find support and resistance levels. When the price reaches a new all-time high, use Fibonacci extensions to find target prices, ensuring that you do not sell at the lowest point or buy at the highest point; buy when nobody is paying attention and sell when everyone is excited.

Advanced traders: analyze what kind of market conditions are present that day, and use naked K-lines to draw trendlines (accurate lines). The trendlines and channels we commonly use—a single trendline can take you far; combine Western technical indicators, patterns, and structures to make precise forecasts; also incorporate all relevant information, including Federal Reserve interest rates, nonfarm payrolls, CPI, as well as policy and military developments, covering every aspect.

Finally, there are position management, mindset, and execution! As long as you put in the effort, you can learn all the theory. What matters is your mindset and live trading! Chasing rises and selling in panic, and trading frequently just for the sake of trading, are all inadvisable! Trading opportunities come from waiting, so time is also crucial. Learn to make friends with time.

In trading, we must learn to control our emotions and not trade while emotionally unsettled; set stop-losses strictly—whenever you open a position, you must set a stop-loss. Even if the stop-loss is triggered and the price eventually rebounds, that is not wealth within our understanding;

After a position becomes profitable, learn to move your take-profit and take profits in batches; after a position incurs a loss, do not panic. Before the stop-loss is triggered, if there is a suitable opportunity at an appropriate level, only add to one or two positions to lower the average entry price. If you are uncertain, simply set a breakeven stop; otherwise, let the position continue generating floating profit;

Everything we do is aimed at developing our own trading techniques and habits—practice makes perfect.

Grasp the essentials within one year, achieve proficiency within three years, become an expert within five years, and become top-tier within 10 years! Only by learning, doing, and understanding can you truly gain;

To unite knowledge and action and fully integrate them, one must not cling rigidly to outdated methods; true knowledge comes from practice. Only by truly entering this field can you understand the profound discipline of trading, and you will also find enjoyment in trading and gain wealth of your own!

In a nutshell: mindset + emotions + luck + understanding = unity of knowledge and action! I wish everyone an early transformation into a genius trader!
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