Ten Key Points of Trend Trading Strategy

1. Core Philosophy: Follow, Don't Predict
   Completely abandon the predictive mindset of "catching the bottom and selling the top." The core of the strategy is "following," using objective tools like moving averages and trend lines, waiting for the trend to naturally unfold before entering to follow. Let profits be "as fate wills," not seeking to buy at the lowest or sell at the highest.
2. Core Mindset: Keep the Strong, Weed Out the Weak, Dynamic Screening
   Treat the investment portfolio as a dynamically optimized system. Regularly review holdings, retain and add to the strongest performers, and decisively eliminate the weakest performers. This controls the overall portfolio's volatility, keeping capital concentrated on the most dynamic assets.
3. Stock Selection Criteria: Smoothness and Elasticity
   Ideal trend trading targets need two key traits: ① Smooth price action (clear trend, minimal choppiness); ② High elasticity (high volatility, significant price movements within the trend). As emphasized repeatedly in the case of "Dongfang Zhenxuan," its characteristics of "strong trend, smooth volatility, and high elasticity" are highlighted.
4. Role of Fundamentals: Merely "Support," Not "Driver"
   Acknowledge that fundamental support often underpins price rises (e.g., earnings growth in the CPU industry), but clearly state that "traders should choose price action, not analysis." Fundamental analysis is mainly used to boost confidence in holdings and understand market logic, but should not become a reason to refuse following the trend (as in the silver case).
5. Ultimate Key: Trading Psychology Trumps Everything
   The success of a strategy is 90% dependent on trading psychology, not on technique or stock selection. Discipline and emotional management are key to mastering the strategy. Common psychological pitfalls include: overthinking, fear of missing out (FOMO), holding onto losses, seeking perfection, and emotional trading.
6. The Art of Holding: Giving Profitable Positions "Room for Error"
   For positions with a good trend that are currently profitable, maintain patience and avoid excessive focus on short-term fluctuations. As long as the trend remains intact, continue holding, even if a limit-down occurs the next day. Allow profitable positions appropriate tolerance for pullbacks.
7. Risk Control Foundation: Clear Risk-Reward Ratio and Stop-Loss
   Before entering, have a clear plan, aiming for a risk-reward ratio of "1:3" or better. Enter at key levels (e.g., pullback points), with a clear new low or technical level as the stop-loss point. Cut losses decisively, and let profits run.
8. Style Discussion: Focus on a Single High-Quality Target
   Shares a successful case of "trading just one stock" (e.g., focusing on FAW Car for nearly two decades). Believes that deep focus on one target or one high-quality ETF helps develop solid skills and stable returns, potentially outperforming holding multiple highly correlated stocks.
9. Dynamic Supplement: Adding Hotspots to Core Holdings
   While holding the main trend assets, allocate a portion of capital for dynamic selection of hot stocks (e.g., silver, gold, and the CPU industry during specific events). This captures the main trend while also seizing short-term market momentum.
10. Simplify Decisions: Replace Subjective Judgment with Objective Signals
    Establish simple rules like "choose one moving average as the sell signal; don't sell unless it's broken." Don't overinterpret short-term fluctuations (like upper shadows). Avoid unnecessary anxiety. Simplify the decision process to: "Identify the risk control bottom line → Execute the follow strategy," maintaining objectivity and discipline.

Summary: The Complete Portrait of a Trend Trader
This strategy depicts the ideal trader as:

• Like a Gardener: Regularly prunes the portfolio, keeping the strong and removing the weak.
• Like a Surfer: Doesn't create waves, only chooses the smoothest, most powerful waves to follow.
• Like a Zen Master: Deeply knows the greatest enemy is oneself, using discipline to overcome inner greed and fear.
• Like a Sniper: Observes patiently most of the time (focus), only pulling the trigger at the best moment (dynamic stock selection).
  Ultimately, trend trading is not about "how to find a bull stock," but about "how to overcome human weaknesses and ride it firmly after finding it." These ten points are the systematic solution to this core problem.