【 Luojin Release 】 It is easy to make profits by being optimistic about the trend and grasping the operating points before placing orders

It is actually easy to make a profit by being optimistic about the trend and grasping the operating points before placing an order
　　
In a trend market, carrying orders is not advisable, and frequent stop losses are also not advisable because market changes are not so fast. I have talked a lot with investment friends and have some feelings. Here, I would like to share my thoughts, hoping to be helpful to everyone.
　　
Based on our experience, we have found that investors may face two possibilities after opening a position: first, the market will follow the direction of their own opening, and at this time, everyone will be happy and closing the position will result in profits; Secondly, if the market is moving in the opposite direction of one's own position opening, a decision needs to be made: closing, reducing, or holding? It is obvious that holding onto losses without stopping is not right, as it will result in being eliminated due to the sustained reverse trend of the market. Similarly, frequent stop losses are not right. With too many stops, there will be a qualitative change caused by quantitative changes, and in the end, the amount of funds will become less and less.
　　
Stop loss is a typical method of death; Carrying the bill is also a typical way of dying. Does this seem contradictory? If it seems contradictory, that's right, because stop loss and carry order are two completely opposite operations. It is obvious that living is the hard truth, and only by living can there be hope. So, how can we avoid these two typical dead ends, or find a balance between stop loss and carry orders? For this issue, Luojin's unwinding summarizes roughly three trading concepts:
　　
1、 Trend formation is not easy to change!
　　
　　做交易需要明确一个交易理念，即市场中商品价格具有趋势性，而趋势本身具有稳定性、持续性、周期性，一旦形成则很难改变。商品价格高得离谱，会影响需求，在crude oil市场中的表现便是牛市顶部区域；如价格低得离谱，则会影响供给，在gold市场中的表现便是熊市底部区域。而一旦因为价格的变动形成既定的趋势，在很长一段时间里，按照趋势方向做交易便不会出现大错。
　　
2、 There are fluctuations in the trend!
　　
The ongoing process of the bull and bear market. In a bull market, prices do not simply rise; In a bear market, prices do not simply fall. There will inevitably be various factors in between, such as news, policies, etc., which can cause a major trend to run less smoothly. The trend market will move forward in a wave like manner, specifically manifested as one wave after another of pullbacks in a bull market, but after the pullback, the price center of gravity will continue to move upwards. In a bear market, there will be multiple rebounds, but each rebound will fall back and the price center of gravity will continue to move downwards.
　　
3、 A suitable position is more important than looking in the right direction!
　　
To a large extent, this is determined by the number of positions. The position is too heavy, and even small fluctuations can be swept out by leverage. Therefore, even if one had seen the right direction early on and indeed opened a position, they were indeed holding on, but ultimately sacrificed themselves heroically due to their position. How to find a balance between stop loss and carry orders? That is to reduce positions, reduce risk by adjusting positions, improve investor risk tolerance, and also avoid interference from "black swan news".
　　
Luo Jin's summary: No one's money comes from a flood, making money is not easy, and it is important to cherish it. Investing is all for the sake of making money, making money is the hard truth, everything else is just empty talk!
　　
The market fluctuates constantly every day, and all I can do is use my research experience to help everyone. Investment carries risks, so be cautious when operating!
　　
Wen/Luojin Jiepan (WeChat)ljjp088）An analyst willing to accompany you through storms and challenges