A8 Master Shares: Is There a Shortcut to Trading?



Some brothers say that watching the market every day is too tiring. No matter whether it's bullish or bearish, the probability is always 50%. Just put your money in and not look at it; after a while, you might get rich! Watching the market daily still results in losses. Should we stop doing that?

There are no shortcuts, but there are methods. Livermore and Ghost have already mentioned in their books that the core principles are twofold: timing and position management.

Timing determines the win rate, while position management determines the risk-reward ratio. There's also an important aspect: stock (or coin) selection timing.

Simply put, buy at the explosive point, or in the explosive zone. Start with a trial position, then add to the position as profits float in. This is done within a very short time frame.

If the trial position doesn't perform as expected, set an automatic stop-loss. Don't let the market prove your trade wrong.

The combination of explosive point + [quick stop-loss | add to position on floating profits] is the optimal solution—both are indispensable.

But why is this method difficult for most people? Mainly because the explosive points happen very quickly. Unless you're constantly monitoring, by the time you see the signal, it's already past the best entry and add-on points.

Additionally, even if you get the signal and enter immediately, many people are not used to actively stopping losses.

One issue is position size: habitually chasing high positions, and once confirmed as chasing the top, it's hard to admit mistakes in a short period.

Another is mindset: thinking that since it's not at the stop-loss level, there's no need to exit. Unless the market proves you're wrong, you won't move. This is also a form of wishful thinking—fearing that if you exit, the market will continue to rise.

It's understandable, but remember one thing: you only trade one type of market—smooth breakthroughs at the explosive point.

If after entering a trial position, the market doesn't continue to break upward as expected, it's considered not in line with expectations. Even if there's profit, it's not the market you want to trade. Exiting early is the best solution. But generally, after a quick explosive move, people tend to give up right after entering, which is against human nature.

Although I don't trade on the board, the logic is the same: betting on the smooth movement at the explosive point.

Why is stock (or coin) selection important? Because although the explosive point significantly reduces the frequency of trades, the win rate isn't 100%.

When multiple targets explode and enter the absolute right side, it all depends on your judgment and choice.

Another potential advantage is that you only trade at the explosive point. Most of the time, there's no value in building a position, but there is value in trading.

During the waiting period, you can patiently look for high-cost-performance trading entry points. Of course, as I mentioned before, trading entries only have short-term high-profit potential—nothing more. No one knows if it will explode afterward.

By following this approach, your account always holds the correct positions. As for how much total position size you can take, it depends on the market.

When the market gives you signals, and you enter with the right position, you can gradually increase your size. If there's no signal, just wait.

Lastly, I forgot to mention: our goal is to define and find this explosive point. It's easy to identify. Then, push the explosive point backward, and within those zones, look for high-value trading entry points. Once you have the entry and position points, doing some homework on stock (or coin) selection is almost done.

That's all I have to say. Basically, if you can trade a few such stocks or coins profitably in real trading, you'll understand how it works.

It's not difficult, but it's not easy either.

Let's encourage each other!
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin