Build one’s own trading system

We need to build our own trading system.

When an investor is in a clear market situation, first of all, he must establish his own trading framework and trading strategy, and implement these strategies strictly. This is more demanding for investment.

In the transactions, we often sell as soon as it rises, and then it will rise more greatly after we sell. We often sell quickly when we make a little profit. Once we are trapped, we are unwilling to end the loss, so that we lose even more, then we end up with leaving it alone. Investors should be good at feeling the market and use our own trading system to measure the market game itself.

Technical indicators are not the more the better, we suggest that MACD and moving average system combined with the most basic judgment such as volume and price is enough. Even Livermore starts from the fundamentals to find excellent companies to begin his own business speculation. Make your own plan to build your positions. Be patient when you buy. Buy the target that you can be assured of. If you set the standard of ending loss, you should also think carefully about how to implement it. If a company's fundamentals are very good, the valuation when you buy is not expensive, and there is no big systemic risk according to Dow's theory, should the loss ending be eased? Ending loss should follow the market, don’t operate it rigidly.

From the perspective of game, the market should always be against the market sentiment.

If yours can't get rid of the control by the market sentiment, it's hard for you to get rid of the feeling that you are always targeted by the market and that you are being watched by the market. Herd effect of the market always makes most investments irrational. The profit source of financial speculation is from irrational traders.