From 0 to 1 Build a Dedicated Trading System: Make Profits Replicable
A trading system is not just a pile of indicators; it is about integrating logic, risk control, and mindset into a practical process. Newbies can follow these 5 steps 👇
1. Define your style and find your capability circle
Don't learn randomly! First, see which one fits you:
Day trading: If you have the time to monitor the market, focus on the 15-minute chart for quick in-and-out trades; Swing trading: The first choice for office workers, look at daily/weekly charts to catch major uptrends without frequent operations; Value investing: Steady mindset, choose mainstream coins to hold long-term, ignoring short-term fluctuations. Only have 10 minutes a day to watch the market? Give up day trading and focus on swing trading for better results.
2. Clarify entry signals, refuse to rely on feelings
Signals must be specific and quantifiable; beginners should keep it simple:
Pattern signals: Only trade recognizable patterns like N-shape, double bottoms, etc., and enter when volume matches; Indicator signals: Choose 1-2 core ones, like the 20-day moving average + volume, and enter when it is above the moving average with increased volume. The simpler the signal, the easier it is to execute; piling too many indicators can lead to confusion.
3. Risk control rules: Lock in loss limits
This is a lifeline and must be set in stone:
Stop-loss: Cut losses if a single trade exceeds 1%-2% of total funds, or exit if it falls below key support levels; Position: Do not exceed 30% of total funds in a single coin, and reduce to within 10% during volatile markets, never go all-in.
4. Take-profit strategy: Lock in profits
Don't earn then lose it back; two methods are sufficient:
Fixed ratio: Take profit at 10% gain for half, and liquidate the rest if it drops below 5%; Technical take-profit: Cash out at previous resistance levels or bearish divergence. Don't be greedy about "selling at the highest point"; securing most of the profits is a win.
5. Review and optimize: Evolve the system
There is no perfect system, rely on iterative reviews:
Record entry signals, positions, profit/loss reasons, and mindset for each trade; review weekly/monthly to patch vulnerabilities (like low win rates for certain signals); first test in a simulated environment for 1-2 months, then practice with small funds.
The system is a slow process of "trial and error - adjustment"; build the framework first, then optimize, ultimately forming a unique logic of "understanding losses clearly, earning reliably"✨. @橙哥ETH #ETH巨鲸增持
