Making transactions simple will make it easier to make profits: ET trader Mr. Sun talks about “simple transactions”

Regarding transactions, Sun Jingpeng believes that the simpler, the better.

Rather than constantly adding technical indicators and looking for more complex trading strategies, he is more accustomed to starting from the daily and 4-hour lines, first judging the general direction of the market, and then looking for suitable entry opportunities.

In his opinion, sometimes, the more complicated the method, the easier it is to hesitate when making a real judgment.

The seemingly simple trading method used by Sun Jingpeng today has also experienced profits, retracements and repeated adjustments.

After experiencing trading for a period of time, Sun Jingpeng realized more and more that knowing how to trade is only the first step. The real difficulty is to implement his judgment in every transaction.

Look at the direction first, then decide what to do

When Sun Jingpeng usually trades, he mainly observes the daily line and the 4-hour line.

His logic is not complicated: first determine the direction of the day and the larger cycle, and then decide whether to enter the market.

If the daily line is in an upward trend, he usually will not easily go short against the trend; if the market direction is not clear, he will be more cautious.

Compared with short-term indicators such as 5 minutes and 15 minutes, he pays more attention to the trend of major cycles.

The reason is also very direct.

Changes in short cycles are relatively fast, and indicators are prone to change with market fluctuations. However, the directions formed by the 4-hour line and the daily line are relatively stable and are more suitable for judging the overall trend.

K-line is his main reference tool, while MACD is more of an auxiliary.“The idea of ​​making an order must be simple, not too complicated.”

This is a sentence Sun Jingpeng mentioned repeatedly.

In his view, if too many indicators are added at the same time, conflicts may arise between different indicators, which ultimately increases the difficulty of judgment.Rather than letting yourself get bogged down in complex analysis, it is better to determine the most important direction first.

The strategy is simple, but it doesn’t mean you can make a profit every time

Of course, a simple trading method does not mean that trading will always go smoothly.

Sun Jingpeng’s account experienced a period of relatively obvious fluctuations: it started to make small profits, and then entered a stage of repeated ups and downs. It was not until the market showed a clearer direction that the trading status gradually improved.

He also knew the reason.His strategy is more suitable for markets with clear direction.

When neither the daily line nor the 4-hour line forms a clear direction, the market itself is prone to repeated fluctuations. At this time, even if you enter the market according to the original strategy, it will be difficult to achieve sustained profits.

This is also a more realistic aspect of trading: no one strategy can adapt to all market conditions.

Rather than forcibly finding a method that can deal with all market environments, it is better to first know what kind of market your strategy is suitable for, and reduce unnecessary transactions when the direction is unclear.

Trading with the trend, not predicting the market

During the interview, Sun Jingpeng also shared several specific transaction judgments.

For example, in a market with an obvious lower shadow line, he believed that the price dropped quickly and then pulled back again, indicating that there may be support below.

After that, the price goes back down again to see if it can continue to rise.

But even so, he does not think that the market will definitely develop according to his own judgment.

In his opinion, this judgment may only be 70 to 80% certain.

The market could still be influenced by other factors and end up going in a completely different direction.

Therefore, trading with the trend is not to predict in advance how the market will definitely move, but to constantly verify your judgment based on the K-line and price changes that have already occurred.

If the increase is not strong enough and prices weaken again, then the original direction needs to be reconsidered.

Trading is not about proving that you are right, but about constantly revising your judgment based on market changes.

The really difficult thing is to strictly implement your own methods

Compared with the trading strategy itself, Sun Jingpeng believes that another issue that is more easily overlooked is execution.

When he was trading by himself in the past, he actually knew the importance of stop loss and was used to setting stop losses.

But it is not easy to achieve 100% execution when you really encounter the market situation, especially when the mood rises.

Knowing stop loss and being able to strictly implement stop loss are two different things.

This is also his more obvious feeling after entering ET proprietary trading.

During the ET trading process, risk control rules will form clear constraints on trading behavior.

When the account approaches the corresponding risk limit, traders can no longer make adjustments as they can when trading alone.

This kind of restriction made Sun Jingpeng more cautious.”You have risk control and are here to keep an eye on it. You can’t exceed a certain limit.”

For him, strict risk control is not simply to increase restrictions, but to turn trading behaviors that were easily affected by emotions in the past into disciplines that must be implemented.

Another change comes from trading mentality.When you invest your own funds in trading, especially when the amount of funds is relatively large, the psychological pressure caused by profits and losses can easily affect trading decisions.

Sometimes the strategy that was originally formulated may change in execution when you actually face your own funds.

In a proprietary trading environment, due to different funding and risk control mechanisms, traders can focus more on the strategy itself and the execution of the rules.

This also made Sun Jingpeng realize that trading ability is not just “the ability to analyze the market”, but also includes the ability to maintain discipline in actual transactions.

I have experienced losses and thought about giving up.

Of course, trading isn’t always a smooth road.Faced with repeated losses and account fluctuations, Sun Jingpeng once thought about giving up.

But after time, energy and money had been invested in it, he chose to continue.

Perhaps this is also a stage that many traders will go through. When they do not get the ideal results for a long time, they still need to re-examine their methods and adjust their status.For Sun Jingpeng, the transaction did not become more and more complicated in the end.

On the contrary, after experiencing the fluctuations, he became more and more clear about what he needed – to see the direction clearly, follow the market, control risks, and then execute it as simply as possible.

The market never behaves exactly as traders expect.What you can do is respect the signals given by the market and respect the rules you set.

This may be Sun Jingpeng’s most direct understanding of “simple trading” after constant trading.