The legendary woman who was reborn from the ashes

In the world of trading, trend trading and contrarian trading have always been the two major strategies. In Jiang Juan's view, the two are not incompatible, but can be combined to form a more comprehensive and flexible trading system.

Most of the time, the market presents a situation of mixed long and short positions and poor trend. In such a market environment, most traders chase the trend, believing that the trend is the core of trading, and trading against the trend is considered a taboo.

However, we must realize that the trend is not everything in trading. When the trend is unclear, the reverse trading method may be a good choice.

Contrarian traders believe that it is not easy to judge trends, and only a few people can accurately judge trends. Trend trading may seem simple, but it actually requires deep market knowledge and experience accumulation.

For most traders, blindly chasing trends often leads to losses. Therefore, Jiang Juan believes that when the trend is unclear, contrarian traders should try contrarian trading instead of blindly chasing trends.

Secondly, commodity prices will return, which is determined by the nature of the cycle. No matter how the market fluctuates, commodity prices will eventually return to their value. Therefore, for contrarian traders, it is a good choice to intervene in the market when prices deviate from value.

The stock market is on an upward trend overall, but there are still opportunities to intervene in the opposite direction in the general trend, that is, to intervene in a cost-effective way. Although the overall market trend is upward, in the short term, the market often appears overbought or oversold. At this time, contrarian traders can make profits by buying undervalued varieties or selling overvalued varieties.

Taking commodity trading as an example, when all the negative factors for a certain product have been exhausted, the safety margin for going long will be very high, and an upward trend will easily occur.

However, reverse trading is not blindly shorting in a rising trend or going long in a falling trend. The success of reverse trading requires following two basic principles: technical support and capital management.

Technical support is the basis of reverse trading. Traders need to observe the overbought and oversold conditions and divergence of the market, as well as the formation of pressure zones. Intervening after avoiding the pressure zone can effectively avoid the risk of blind trading.

At the same time, the oscillation intensive area is both a support level and a pressure level, which can provide clear stop loss and take profit points.

Money management is the key to reversal trading. Since reversal trading goes against the trend, if money management is not done properly, it is easy to suffer losses. Therefore, traders must set clear stop loss positions to control risks.

At the same time, a multi-variety portfolio is also an effective way to reduce risk. By diversifying investments, the risk brought by a single variety can be reduced.

Traders also need to pay attention to their mentality. Respecting the market and adjusting their mentality are the keys to success. Market behavior accommodates and digests everything, and traders must abide by the rules of the market. At the same time, adjust your mentality through fund management and multi-product combinations to avoid being affected by market fluctuations.

Let's use a reverse transaction example to illustrate this problem. In a period of oscillating (central) market, Jiang Juan wanted to reduce the cost of holding stocks through daily intraday T+0 transactions to gain profits, but in the process of rising central oscillation, shorting without setting a stop loss can easily lead to losses.

During this period of volatile market, Jiang Juan did not correctly distinguish whether it was a volatility during an upward trend or a volatility during a downward trend, and directly carried out grid trading, that is, shorting during the upward trend of the volatile market and going long during the downward trend.

Jiang Juan's method was effective in some cases, but because she did not set a clear stop-loss level, she ultimately suffered huge losses.

Jiang Juan therefore discovered her own trading flaws. This example tells us that reverse trading is not a simple contrarian operation, but requires a combination of technical support, capital management and mentality adjustment.

Combining contrarian trading with trend trading can form a more flexible and comprehensive trading strategy. In a market with a clear trend, trend trading can help traders seize the main trend and achieve steady returns.

In a market with poor trend, reverse trading can provide more trading opportunities and increase the source of income.

To achieve this combination, traders need to master the technical points and principles of both strategies. In trend trading, traders need to accurately judge the trend and choose the right time to enter and exit the market.

In reversal trading, traders need to pay attention to the market's overbought and oversold conditions, divergences, and the formation of pressure zones, while controlling risks reasonably.

Traders also need to pay attention to fund management. Whether trading with the trend or against the trend, they need to set clear stop-loss and take-profit levels to control risks and protect profits. Diversifying risks through a combination of multiple products is also an effective way to reduce the risks brought by a single product.

Traders also need to maintain a good mentality. Respecting the market and abiding by the rules are the keys to success.

During trading, traders need to remain calm and rational at all times and not be affected by market fluctuations. Adjusting the mindset through fund management and multi-product combinations can help traders better cope with market changes.

In the process of exploring new trading horizons, combining reverse trading with trend trading is a method worth trying.

This combination strategy can not only improve the flexibility and comprehensiveness of transactions, but also help traders maintain stable returns in different market environments.

Of course, this strategy is not foolproof, and traders still need to continue learning and practicing to improve their trading system.

How to better combine these two strategies? Jiang Juan shared her experience in reverse trading with investors and gave the following suggestions:

1. Clarify the market environment

When deciding whether to trade with the trend or against the trend, you must first understand the current market environment. If the market trend is obvious, then trading with the trend may be more appropriate; if the market trend is poor, then against the trend may have more opportunities.

2. Make a clear trading plan

Whether it is trending trading or reverse trading, a clear trading plan needs to be formulated. This includes entry points, stop loss points, take profit points, and fund management. A clear trading plan can help traders better control risks and achieve stable returns.

3. Stay flexible and adaptable

The market environment is constantly changing, and traders need to remain flexible and adaptable and adjust their trading strategies at any time. When the market environment changes, they should adjust their trading plans in time to adapt to the new market environment.

4. Continuous learning and practice

Trading is a process of continuous learning and practice. Traders need to constantly learn new trading concepts and skills, and constantly practice and summarize their trading experience. Only in this way can they continuously improve their trading system and increase the success rate of trading.

5. Maintain a positive attitude

Trading is a psychological battle, and it is crucial to maintain a good mentality. No matter how the market fluctuates, traders need to remain calm and rational and not be affected by market fluctuations. At the same time, adjusting the mentality through fund management and multi-product combinations can help traders better cope with market changes.

In short, combining reverse trading with trend trading is a trading strategy worth trying. By clarifying the market environment, formulating a clear trading plan, maintaining flexibility and adaptability, continuous learning and practice, and maintaining a good attitude, traders can better master this strategy and achieve stable returns.

In future transactions, Jiang Juan will continue to explore the application and optimization methods of this combination strategy in order to achieve better performance in the market. At the same time, Jiang Juan also hopes to share the experience and insights of this combination strategy with more traders and jointly explore new horizons of trading.