Talking about how to make trading strategies for beginners

Many people often equate trading strategies with trading techniques when doing venture capital, which is wrong. In fact, the trading strategy is a complete set of trading procedures for venture capital, which includes the assessment of the relevant product market, the research, and judgment of the trend, the choice of entry time, stop loss and target position, execution of the trading strategy, and transaction summary. And trading technology is actually a qualitative analysis we use chart analysis, technical analysis, etc. So to put it simply, the trading strategy includes trading technology, but trading technology is not equal to the trading strategy.

Market evaluation of investment products

Taking spot copper as an example, because spot copper is a commodity, it is essential to analyze the relationship between supply and demand. It should be analyzed separately from the two aspects of supply and demand, such as the production and inventory of spot copper-producing countries or the data of processing and manufacturing industries in consuming countries to weigh whether the supply and demand relationship is balanced. If supply exceeds demand, prices fall; if supply falls short of demand, prices rise. Secondly, analyze the external economic environment, such as economic policy, monetary policy, geopolitics, natural disasters, etc. (Special reminder that the Australian dollar also has a greater impact on the trend of spot copper.)

Trend Judgment

Trend: A trend is not only a manifestation of space but also contains the concept of time. Therefore, a trend should be described as what kind of trend appears at what time, indicating that the price movement around a certain direction is roughly larger.

Take the daily chart of spot copper as an example:

The above figure shows the overall trend of short squares from May 2015 to November 2015 (AB), and the trend of short squares from mid-October 2015 to November 2015 (CD). Because the trend is very obvious to the direction of the price trend, so determining the trend also determines the direction of the transaction. Therefore, we consider shorting in the above short trend.

Choose when to enter

We know the overall operating trend of spot copper and the relationship between supply and demand in the market, we have initially grasped the initiative of the transaction, and then we have to consider when to enter the mark

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There is no ideal trading strategy with high returns and minimal risk. Trader should always test their plan regularly. It gives a clear view of what works and what doesn’t.

Every trader can find here something that will become a real help in everyday work. It all depends on the desire, perseverance and the right tools to analyze!

Very precise explanation.
I think this is an important moment for traders who have not yet fully understood the mechanisms of the market and, accordingly, want to understand it in order to better understand what’s going on and improve their efficiency.