It's the weekend, let's talk about some trading strategies and insights.

1. The essence and mindset of trading

① Don't let trading take over your life; family and work are more important than short-term gains and losses.
② The core difference between experienced and novice traders: not elated by profits, not panicked by losses.
③ The funds must be idle; "pressure funds" such as those for buying a house or getting married must never enter the market, otherwise, the mindset will definitely collapse.
④ The amount of capital affects mindset: Losing 10,000 on 100,000 feels completely different from losing 20,000 on 100,000. One must be able to endure fluctuations and avoid frequent trading.

2. Core Principles of Trading

① Controlling the position is the top priority.
Do not invest more than 30% of the total funds each time. For example, with a capital of 10,000 U, the maximum single operation should not exceed 3,000 U. After making a profit, you can gradually increase your position, but the total position should still be restrained.
② Must set a stop loss
Not setting a stop-loss is equivalent to gambling with your life; one mistake could lead to total disaster.

3. Simple and Practical Bollinger Bands Strategy

1) Core components: Middle line (20-day moving average, indicating trend), Upper line (resistance), Lower line (support), 95% of the price fluctuates within the channel.
2) 3 basic strategies
① Trend Market: When the middle track is moving upwards, buy when the price retraces to the middle track, and set the stop loss below the lower track.
② Volatile market: Buy when the price drops to the lower band (better with oversold signals), and sell when it rebounds to the middle band or upper band.
③ Extreme Market Conditions: Reduce positions when the price breaks above the upper band (overbought), and do not buy at the bottom when it breaks below the lower band to avoid being trapped by chasing highs.
3) 3 major taboos
① When the middle track is going down (in a downtrend), do not catch the bottom when it hits the lower track.
② When the price breaks through the channel, it is necessary to look at the trading volume; if there is no increase in volume, it may be a false breakout.
③ You cannot rely solely on the Bollinger Bands; you need to combine them with indicators like MACD and RSI.

4. Summary

Key to trading: control your position, set stop losses, maintain a steady mindset, use simple strategies (like Bollinger Bands) to respond to market conditions, and don't let greed and fear dictate your decisions. Remember, preserving your capital is always more important than short-term windfall profits.
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