For most traders, the ultimate goal of trading is to achieve a stable and profitable state in the trading market and make a living from trading! However, in fact, we always find that we and the people around us are losing money, and we have not seen anyone who has really realized this ideal. Then the question comes, is trading for a living an ideal that is realistic and achievable, or is it an unrealizable ideal? lie? Today we will talk about this topic.
Before answering this question, let's look at another question, why do most traders lose money?
I have seen too many traders who lose money. I concluded that the reason why they lose money is that they do not have the quality and ability to make money in trading, and they often make mistakes. I will just list a few. You can see if you have made the following mistakes If there is an error, please leave a message to exchange:
①There is no logic in opening a position, guessing, and follow the feeling ②Afraid of winning but not afraid of losing, make a small profit, close the position hastily, lose money and die, the trading profit and loss ratio is very poor ③Like to do data market such as non-profit Agricultural data, gambling data ④The position setting of opening orders is more random, open positions according to your own preferences, there is no concept of good or bad opportunities ⑤There is no plan for trading, or there is a plan not to execute.
Please check your seats. If you are committing the above points, I suggest you stop trading immediately and stop sending money to the market. Of course, local tyrants who are not short of money are welcome. Traders with the above problems first take time to reflect on the summary and review their own transactions. If you want to make a profit in the transaction, you need to have a stable trading system. If your order, position, and analysis logic are uncontrollable , then your transaction itself is unstable, and the transaction lacks consistency, so it is impossible to talk about stable profits.
Therefore, most people lose money because they do not have a mature and stable trading system.
Now let's get back to the topic, is there a stable profit in trading? Is it possible to make a living trading?
Over the years of doing foreign exchange technical education in the Asa community, we have come into contact with many excellent traders. There are indeed a few who can do it, but the number is a bit rare compared to ordinary traders. One thing they have in common is that they all have their own set of transactions The method, that is, the trading system, and it is firmly implemented.
Let’s talk about a real case that is closer to ordinary traders and more down-to-earth. A student in our community had liquidated a position of US$90,000 in a row before. In order to reverse the situation, he made a trading plan for himself. Only put 500 US dollars in the account, and divide it into one-tenth of the daily cost, which is 50 US dollars. No matter how many times a day you trade, how many hands you trade, if you lose $50, you will stop trading and force yourself to control your position!
To control the maximum loss of $50 per day, he will restrict his trading operations as follows:
1. Each time an order is opened, 0.05 lots, with a stop loss of 30 points. If a strategy requires more than 30 pips of stop loss, abandon the trade.
2. The number of transactions per day is controlled at 3. In the case of a cost of 50 US dollars, if you open an order of 0.05 lots, even if all three orders are stopped, the cost will be around 50 US dollars
3. The profit-loss ratio should be more than 2:1.
4. Strictly abide by the principle that as long as you lose $50, no matter how good the opportunity is, you will not make an order.
5. If the account floats and wins, let the profit run wild, the maximum loss has been fixed, and there is no rush to close the profit order.
Through strict implementation of this plan for one month, we turned losses into profits. During this period, we did not blow up our positions again, and made a small profit of more than 200 US dollars.
This is not a standard stable profit case, and the other party is still in the process of building the system, but it gives us a glimpse of a lot of trading principles.
First: It is not easy to make money in trading. You must have methods and dedication. In this process, you will face the struggle between human nature and system planning. After implementation, you will definitely encounter many obstacles. Only by overcoming obstacles can you have a chance to become winner.
Second: If you want to achieve long-term profitability, you must form your own mature and stable trading system, and you can't mess around. Most people can't even do basic trading self-control. How many people can't extricate themselves from repeatedly carrying orders and exploding their positions. A complete trading system includes many links such as analysis system, position management, mentality management, and trading plan management. It's no easier than climbing Mount Everest.
Maybe some friends will think it’s nothing special when they hear this. For $200, I can do it with any order. Yes, I’m still guessing. Friends who place orders based on their feelings may earn far more than $200, but similarly, the next time you do this kind of operation, you may lose far more than $200. And the monthly income of 200 US dollars in a 500 US dollar account is 40% of the income. When the student's account is as large as 5,000 US dollars and is still firmly implemented, when the account is as large as 50,000 US dollars and is still steadfastly implemented, what will happen? ?
Trading is an endless practice. Only a very small number of people can become their ideal self and make a living from trading, but as long as we don't give up, there will be opportunities. I wish you all ashore as soon as possible.
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