In the financial markets, build a position strategies often determine the success or failure of trades. This article will delve into two core build a position principles, providing investors with valuable insights.

Build a Position with the Trend: Grasp the Market Pulse

Market trends have strong continuity, whether rising or falling, which may exceed the expectations of ordinary investors. The trend-following Build a Position strategy takes advantage of this characteristic to participate in the market with relatively low risk.

When implementing a trend-following Build a Position, the following points need to be noted:
1. Enter with caution: Even when trading with the trend, there must be sufficient evidence, and risk must be strictly controlled.
2. Firmly Build a Position: As long as there are no clear reversal signals in the trend, you should maintain confidence and continue to hold.
3. Dynamic Take Profit: Continuously adjust the stop-loss point as the trend develops to avoid prematurely predicting the top and fully enjoy the trend dividends.
4. Seize the opportunity: You may consider Build a Position when the price retraces to the trendline support level, or when it breaks through the previous high.

Build a Position Against the Trend: Finding Opportunities Amid High Risks

Building a Position against the trend, although risky, can also bring considerable returns in certain situations. However, this requires higher skills and stricter discipline.

The key principles of building a position against the trend include:
1. Strict Risk Control: This is the primary task of counter-trend trading, and it is essential to guard against potential significant losses.
2. Exercise Caution: Avoid participating in small-scale, weak rebounds or the first wave of rebounds, as these are often accompanied by higher risks.
3. Quick In and Out: Before a clear trend reversal, counter-trend trading should be short-term operations, and one should not linger in the battle.
4. Based on precedent: Compared to trend trading, counter-trend trading requires a solid analytical basis for support.

It is important to note that one should not easily build a position just because asset prices have significantly declined; this is a common misconception. Every trade should be based on thorough analysis and careful judgment.

Conclusion:
Whether building a position in favor of the trend or against it, investors need to possess solid market analysis skills, calm judgment, and strict risk management awareness. Through continuous learning and practice, investors can gradually master these strategies and find their winning path in a complex and volatile market.