It completely ignores macroeconomic changes, industry prospects, individual stock fundamentals and other long-term factors.

Going long-term is just the opposite.

The buying point does not need to be too strict or precise, but you must study and judge the macroeconomics, industry information, individual stock fundamentals and company financial reports.

Trading skills are what we need to learn most, and we have to make a lot of hard work for them.

It will not be expanded here.

Third, position management.

The point is simple -

When the market sentiment is bad, hold back and take short positions.

When you are not sure, take a short position.

When the market as a whole is improving, be bold and take heavy positions.

However, it is best never to fill a full position and leave yourself room to do T.

Managing positions well is the first step for us to defeat human nature.

Fourth, risk control.

It has nothing to do with positions, but has something to do with position allocation.

The so-called position refers to the percentage of funds allocated to buy stocks.

The so-called position sharing means using that funds to buy several stocks.

The purpose of diversified investment is to spread risks. Top experts still attach great importance to diversifying positions. Unless they only do ultra-short-term investments, risk diversification is an eternal need.

Another key point in risk control is the setting of profit-taking and stop-loss points.

The requirements for ultra-short trading and trend trading, and stop-profit and stop-loss trading, are completely different.

Normally, the long-term can withstand higher profit retracement, but the stop loss point should not exceed 30%.

The stock price has dropped by 30%, which proves that your buying logic is completely wrong. The most rational thing to do is to admit defeat and leave.

Fifth, trading discipline.

Now that we have a complete set of model prototypes, it is best to set aside a period of time to verify the accuracy of the model in the simulation disk.

It's not accurate enough, so find the problem quickly.

Fix problems promptly until the success rate reaches above 60%, the higher the better.

At this point, the trading model is fully formed.

Faced with any situation, we have a set of pre-set procedures to deal with it.

Then, only the most difficult and important thing remains, four words: strict implementation.

When the buying point is reached, resolutely buy, and when the selling point is reached, resolutely sell.

Go short when it's time to go short, and cut the meat when it's time to cut.

Where did those leeks that became shareholders come from?

There is no discipline, or, there is discipline but it is not strictly followed.

This ends the explanation of the trading model. Thank you, Teacher Wu, for giving me this opportunity.

Finally, let me make two more digressions.

The Chinese stock market has always been divided into 721, with 7 losses, 2 draws and 1 gain.

It sounds scary at first.

But based on our huge base of investors, the absolute number of people who have made money is still quite large.

How do they make money?

Have a pattern and be disciplined.

How did the leeks lose money?

Not understanding anything, I rushed into the market with my eyes darkened.

Today I'll listen to some so-called insider information, and tomorrow I'll learn some of the secrets of winning. If you try one, you'll be stupid, but if you're fooled, you'll be confused.

No common sense, no determination, no method, no determination.

Who do they lose if they don’t lose?

However, it is precisely because there are so many leeks that we have room to display our talents.

If you respect the market, respect the trends, and master the correct methodology, it is really not difficult to make money.

Classmates, let’s encourage each other.”

Han Lie took a step back, bowed slightly, and walked off the podium.

Teacher Wu nodded happily with a smile on his face. He just raised his hands and was about to take the lead in applauding when suddenly there was a thunderous applause and cheers.

The bark-sticking drake's voice sounded first, followed by Fang Feifei and Yu Yun excitedly following.

The cheers were mixed together in confusion, but those four words were still clear——
Chapter completed!