Trader Eric's Trading Philosophy

1. About Trader Eric

Eric is a day trader in the US stock market and currently operates the "Million Traders" community, providing traders with quantitative tools and training. His trading strategies mainly include:

1. Capital allocation:

   • Most of the funds buy spot.
   • Partly used for stable returns on exchanges
   • Partial empty position

2. Trading Logic: Short-term + Trend + Dollar-Cost Averaging

3. Trading Experience:

   • Entered the industry in 2017, initially only engaged in short-term trading.
   • Shift to swing and trend trading after August 2022
   • Now adopting a combination strategy of short-term, swing/trend, and dollar-cost averaging.

4. Professional Background:

   • Graduated from the Department of Statistics at New York University
   • Previously worked in venture capital, looking at the education sector
   • Backward turn to become an intraday trader for US self-operated funds

Eric believes that his trading strategy is suitable for "those who are willing to continuously operate and review their trades." He emphasizes the importance of practice and review in continually advancing trading skills.

2. Eric's Trading Story

1. How to make money through technical analysis?

Eric thinks:

• K-line is just a representation of price and cannot reflect information such as institutional costs and counterparties.
• The main force is a collection of wisdom, not corresponding to a specific person.
• Technical analysis has its limits; it is impossible to determine the cost of the main players, etc.
• A mathematical model is needed to understand the market situation, but even so, it's not possible to make a profit every time.

For beginners, moving averages are the easiest indicators to grasp.

• Trend framework can be established: go long when the price is above the moving average, go short when it is below.
• Find a repeatable learning path within this framework, continuously iterating strategies.
• In subtle operations, look for entry points by superimposing multiple factors such as overbought, support, divergence, etc., (.

2. Standards for Selecting Altcoins

Eric suggests choosing cryptocurrencies that have gone through the four stages of "brewing, breakthrough, explosion, and exhaustion" in the past year:

• Brewing: trading volume declines, candlestick sizes decrease, price fluctuations are small
• Breakthrough: Quickly break through the previous high pressure area
• Surge: Capital influx, prices accelerate upward
• Exhaustion: Entering extreme irrational fluctuations, price drop after leveraged liquidation.

These types of cryptocurrencies have a complete cycle, high capital attention, and good liquidity.

3. Steps for Beginners to Learn Trading

• Measure risk, set capital and time limits
• Learn different strategies and find the method that suits you.
• Conduct 100 live trades and review them.

4. Stop Doing List

Maintain a respect for the market; do not think you can conquer it just because you are making money. Always prioritize risk control.

3. Eric's Recommendation

1. Recommended Traders:

   • Anton Kreil: Former Goldman Sachs and Morgan Stanley trader
   • Ross from Warrior Trading: specializes in short-term trading
   • Teacher Ni: Can continuously provide high-quality market analysis

2. Recommended Books: "The 10,000-Hour Rule" "Deliberate Practice" "Cognitive Talent"