First of all, you should determine a train of thought.
If your idea is to study XXX and judge the next direction before trading, then, very simply, you can study the accuracy of the direction.
If your idea is that the future trend is uncertain, we need to deal with risks and benefits. If we want to get benefits under the premise of controllable risks, then we can find ways to deal with risks and benefits.
The next step in this idea is trading logic. How to realize this idea? How can we control risks and gain profits?
For example, you have to stop loss and make profits to realize this idea. So, how to construct the transaction details to realize this logic?
You need to set up a trading system. The futures trading system consists of three trading rules:
Entry rules, exit rules, fund management rules.
You need to design these three rules according to your own preferences.
For example, the turtle trading rule. Breaking the 20-day high is the entry rule, and falling below the 10 low is the exit rule. For each transaction, 1% of the total amount of funds is used as the fund management rule.
Through these three rules, a futures trading system has been formed. It outputs your trading logic and carries your trading philosophy.
You have your own trading system.
First, the stock selection system.
It mainly includes two aspects: fundamental stock selection and technical stock selection. The main criterion is that the fundamentals will remain stable and profitable within three to five years. The price-earnings ratio of the main indicators is not more than 30, the price-to-book ratio is not more than 5, and the ROE is greater than 10%. Technically, the medium and long-term moving average must be upward, preferably in junior high school, to ensure that the winning rate can be above 60%. At the same time, establish a profit-loss ratio, which is generally not less than 3.
Second, the trading system.
Buy and sell strictly according to the inflection point. Mainly referring to glanville's eight trading principles, there are medium and long-term moving averages and deviation indicators, as well as MACD deviation and time-sharing line.
Position control is strictly controlled according to the principles of warehouse division, equal distribution and batch trading.
This must have a strong patience to wait for opportunities!
Third, the security system.
We should strictly follow the principles of "stock selection" and "trading", make a good plan, strictly implement it, and leave no room for ourselves! All stocks that do not conform to their own system will not be done! All stocks that reach their stop-loss and take-profit prices will be executed immediately, regardless of cost!
All traders who listen to the news and don't know their own logic by feeling still have a long way to go.
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