In some places, it is best to break the 5-day moving average, in some places it is best to break the 20-day moving average, and in some places it is best to break the lowest price in the last 7 days. Looking back, it is best to get more profits from the whole journey. This is wise for the K-line afterwards. If it is beforehand, how do you think you can make a profit?
Why is it not optimal?
If, I mean, the market has certain regularity, then we can certainly find an optimization method that can adapt to this regularity and achieve profitability. However, the fact is that there is no such thing as a market? Ordinary? Its trend is uncertain. For example, in the above-mentioned rising market, there are many corrections in the middle, some of which are 5%, some of which break through the 20-day line, and some break through the 10 low?
In this short half-year market, it is almost impossible for us to fully apply the law. Among them, no one knows whether the decline is a callback or a reversal, and no one knows where the price will stabilize and then start to rebound.
What should I do?
The so-called take profit rule is that the market turns to a certain extent and you can't bear it. Everyone's profit-taking rules are based on their ability to withstand retreat.
Let's take the above iron ore market as an example. If I can only bear the retracement of the 10 moving average, I need to take profit and re-enter the market several times. If I can bear the retracement of the 20-day moving average, then the number of take profits will be reduced a lot; If I can bear the retracement of the 60-day moving average, a wave of market can be eaten from beginning to end. Of course, the price of eating a whole wave of market is that there are a lot of profits when you leave the market.
In short, there is no way to do the best for a single transaction. For long-term transactions, the results of all fixed rules are similar.