A coin friend asked: Can I go long around 83300?

A: Here you can enter, but you need to set a stop loss at 83000. If it breaks below, you should enter again near 82500.

Do not go long in places that are not strong support; setting a stop loss is essential. If you enter at 83300 with a stop loss at 83000, the loss would only be 300 points. If it drops, you can enter at a cost 800 points lower than 83300.

If the profit-taking target is 85500, what is the difference between setting a stop loss at 83000 and not setting a stop loss but breaking below?

A, do not set a stop loss at 83000. If it drops and then rebounds to 85500, the profit from the long position at 83300 will be 2200 points.

B. Set a stop loss at 83000. If it drops and re-enters around the support point of 82500, the cost will be about 800 points lower than the long position at 83300. Therefore, the profit when rebounding to the target point of 85500 is 85500 - 82500 - 300 = 2,700. This is also 500 points higher than the profit without a stop loss! Most importantly, it can also prevent the risk of falling below 82000. The greater the drop, the lower the cost of re-entering the long position at a lower level, and the greater the profit from the subsequent rebound.

Conversely, precisely because the market isn't that good, when it rebounds near major resistance levels, as long as it’s not a hundred times leveraged, there’s less need to set a stop loss, because it is still in the hourly level pullback phase, and the height of the rebound inherently has its limits. If the market is indeed good, and it can continuously break through and stabilize above the first breakthrough resistance, then it's a trading strategy focused on low longs, rather than high shorts. Just like Sun Wukong making a somersault for ten thousand eight thousand miles, even one more mile is difficult to achieve; this is determined by its own threshold.

Every day trading is like doing addition and subtraction. It's similar to how our ancestors ran their businesses; during times of poor market conditions, we need to be meticulous and frugal. During good market conditions, we can be a bit careless and lenient.