It just so happens that I have a rest today, so I will share with you what I have seen and thought in the past two days. I basically say something when I think of it. In addition, I will answer some meaningful readers' questions separately from today. I hope that I can also Give everyone a good reference.
The Frightening "Martingale" Strategy in the Market
Some readers asked whether the "Martin" strategy is easy to use? I believe that comrades who see the four words martingale have different feelings-many people have bought such an EA, there are many people who make short-term violent profits, and none of them escaped the liquidation and left in the end ending!
First let me describe the strategy; the Martin strategy is a classic casino strategy used almost exclusively by new casino players. Its method is evolved from Russian roulette. You can check it. Russian roulette means that a number will be issued in each game (each number has a color, and there are only two colors in total). Players can bet on numbers, or Betting on color, betting on color is 1:1, which is the prerequisite for Martin's strategy. Then the martinger strategy is that if you bet 1 yuan first, lose, then bet 2 yuan, lose, then bet 4 yuan, pay attention to the coefficient times of the last time each time, until you make a profit, you will get back all the previous losses The money and earn 1 yuan more or the coefficient of the initial value.
It is easy to see what the weakness of this formula is. There are some situations in casinos that are different from foreign exchange trading. First of all, casinos will not only show one color in one night in order to save face. In other words, you can cut off the trend by changing the table with a high probability. In this way, you have a condition that you can change the gaming table (species) artificially, and have time to observe the trend (observe the ratio of black and red).
In foreign exchange trading, first of all, you are a little poor (every transaction has a rake in the casino), you still have an overnight fee (the casino does not), and secondly, your trend will not stop (the casino can), and you cannot change varieties in the middle (the casino can change Table), the probability of hitting a small trend is definitely greater than that of the casino. In addition, you have leverage (the casino does not), and the risk-reward ratio of this strategy is extremely low. Many EA owners design it to close the position once the return is a little more, which means that you lose once, and you may not be able to earn back 10 times!
Many people package the martingale strategy as a 100% profitable strategy. Let’s think about it. Unless your principal is infinitely large, or your position must be infinitely small, you do make money. Every time you lose a few thousandths, you get 10 times Make up, isn't it embarrassing? If you want to take a larger position to catch up with an extreme market situation, your account will explode on the spot. Some people say that our Martin can carry a "stop loss", think about it. . . Does it make sense? What does it mean to be a doubling gambling strategy with a stop loss? Is there something wrong? . . . . . I once asked my IT staff to conduct a systematic calculation of this strategy. No matter what risk control strategy you add to this strategy, the final result will be a liquidation! But sooner or later.
In addition, many people say that I am amazing and I know what the trend is, so I would like to ask: Since you know the trend, why do you increase your position against the other side-do you insult everyone's IQ? I don't understand why many people are fooled by this strategy. Later, my partner said to me: Greed. In many cases, no matter who comes to me for advice on transactions or learning from me, I will add a sentence every time, must have a sense of learning and think more proactively. Trading is the same as life, the most fearful thing is pretending to be ignorant. I have said this sentence countless times, and I hope this essay can help you stop falling into the pit again.
Another little story, this is me, Mr. X and Mr. Y were talking about investment training last Sunday. X is the director of a well-known fund strategy in China, and Mr. Y is a free trader. Ten thousand US dollars, I usually don’t ask how much I earn every year, but Mr. Y bought a big house in the suburbs with his wife and children. The family doesn’t go to work. He goes to the city every three months to chat with us and then goes back. country lifestyle. . . Mr. X and I have always envied Mr. Y, so that's all for the background.
In addition to simply talking about the recent market, the three of us talked about training (some nonsense is abbreviated)
Mr. X: It has always been a problem to reserve talents for traders. It is not easy to train a trader.
Mr. Y: I deeply agree, it is always difficult to train a person, but is it difficult in technology, using my own learning case as an example, both of you know that it is the smallest pediatrics only after learning technology Things, the thickness, dimension, and level of knowledge determine a trader's vision. These can be learned if given time, but the mentality is really difficult. It is even more difficult to use it in combination. . .
Me: In terms of mentality, although I have researched and used a systematic method to teach, there is one thing that I must learn to reflect and summarize. Many times when I do training, I just watch the students make a mistake at the lowest cost, and then slowly guide.
Mr. X: If the mistakes are small, if you can reflect on it, you are a good student.
Me: Pain, many people think that small mistakes are okay, and the pain is low, but once it is difficult to do it with this kind of thinking, I usually make repeated orders, but my partner Mr. Dilemma.
Mr. X: What is the dilemma? In our fund’s talent cultivation, the law of the jungle, if you can’t remember making mistakes more than three times, just brush it directly, and you can’t give time.
Me: Isn't that a lot of seeds?
Mr. X: There is no way, there are too many people, and there are few who can think and use their brains.
Mr. Y: I agree with Mr. X on this point. Whether it is life or business, if you don’t use your brain, you will always be a mediocre person. Mr. X has to explain to customers every year.
Me: Yes, I agree with both of you, but I also have the same feeling through the experience of several profit-making students I brought out. Trading is not a problem. It is enough to be lazy every day. How is that possible? Necessary efforts must be made, and there must be regularity and rhythm. It is not enough to accomplish it overnight. Everything has its own laws, just the laws of nature.
I intercepted a part of the meaningful part of our chat and shared it, hoping that everyone can learn from it. Learn + think, reflect on yourself. Trading is not just a trick. Tomorrow I will talk about those so-called "reproducible" trading systems in detail in the live broadcast! In addition, if you have any questions, click on the avatar to communicate with me, as long as you see it, I will reply.
Author: Kim Seung-ho
Learn the correct trading ideas and capture market trends in advance!
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