Hello everyone, it's great to see you all again. These past few days, Changzhou has entered the plum rain season, and it seems to rain almost every day for a while. Although it affects travel, the air has become much fresher.

This also fits an old saying, "fortune and misfortune are interdependent." Just like our trading, both profits and losses should exist reasonably. Today, let's discuss several trading patterns and methods of setting stop losses.

1. Unregulated buying and selling lead to a high rate of errors and increased trading costs.

a. Long-term trading:

The stock market is not a place for consumption, and the mentality of "not the best, but the most expensive" doesn't work, so there's no need to specifically choose some expensive stocks to buy. The correct approach is to buy and sell suitable stocks at the right time and at the right price. Try to choose stocks with some disagreement; stocks without disagreement are like a "goody two-shoes," who is nice but not good for anything else.

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2. Medium-term trading:

The most important thing in a volatile market is to "buy low and sell high within a certain range." Friends who like this style of operation should pay special attention to the fact that when the original range is broken, they are unprepared and thus easily defeated.

The sudden abnormal fluctuation of a stock that has been in a long-term horizontal position is a signal of a change in the market trend.

3. Short-term trading:

Avoid unregulated buying and selling to reduce the rate of errors. After a large number of mistakes, it becomes psychologically unbearable, leading to a final defeat.II. Profit and loss are like yin and yang, complementing each other and both should exist.

Mistakes in direction are also a part of buying and selling, and they are reasonably present. One must learn to accept them. When establishing one's trading system, the possibility of directional errors should be included. Always maintain a sense of vigilance to "prevent problems before they arise," and only by promptly stopping one's mistakes can continuous profit be achieved.

Plan thoroughly before trading, execute resolutely during trading, and remain calm after trading.

III. During the trading process, we are not humans but machines.

1. How to set stop losses for medium to long-term positions:

Negative times negative equals positive, like repels like. How should this be understood? Within the same period, if two tops are formed shortly apart, it indicates that the market is about to reverse.

It is also important to note: if we are currently trading on a weekly basis, we should pay attention to the monthly and daily charts. When the direction of the monthly and daily charts is opposite to that of the weekly chart, it is possible to establish a position. This is going with the major trend and against the minor trend.

2. How to set stop losses for short-term positions:

The stop-loss position is your bottom line. One must have a bottom line in life, and trading should also have a bottom line. Only by holding the bottom line can one talk about profit.

For short-term trades, it is essential to set a range based on support and resistance levels. Within that range, do not be overly concerned with taking profits or stopping losses.IV. Master the Art of Reverse Thinking, the "80/20 Rule" Resounds Like Thunder

Consider issues from the perspective of retail investors and then act in the opposite manner. "Take profits at the slightest gain and hold onto losses until the bitter end" is the trading approach of most retail investors. A successful trader, however, should: use their principal to defend their position, and use their profits to take the offensive, even aiming directly for the enemy's stronghold.

That's all for today's sharing. Thank you for reading, see you next time!