Hello everyone @郭新 Since the epidemic, many people in the financial market think that it will be very bad and will be affected by many negative effects, but the history is strikingly similar, but there is no simple repetition. The futures market, stocks, Bitcoin, and US stocks have all created new ones. This is an opportunity in a crisis. Whether you can seize the once-in-a-lifetime opportunity depends on how much you know. The recent crude oil market has fluctuated. It is recommended that everyone hold the long-term long-term trend. Let me tell you that the market is not the real world, it is made up of the minds of all participants, and investors enter the market with prejudice. When prejudices have interactive influence among investor groups, there will be a herd effect. The market is a result, something beyond everyone's understanding, and no one can accurately predict the market.
Prejudice is the driving force of the market. If there is no short-term and long-term market, how can there be market prices that go up and down every day? Essentially, there would be no market.
Therefore, the emotions of prejudiced people are not only the driving force of the market, but also the basis for the existence of the market!
In this way, it is easy for us to understand that in the market, bullish and bearish people are betting against each other. No matter what the system is, there are bound to be people who make money and lose money.
We cannot predict the outcome of the bet. Because the strength of both long and short sides is often changing, the so-called more kills more, and the empty kills the empty. However, being unpredictable does not mean that we cannot grasp the moment, otherwise we will not be able to trade rationally.
Disturbance of subjective emotions is the root cause of losses
. To do rational trading, you must jump out of the circle and keep a distance from the long and short sides fighting in the circle. Only in this way can you see clearly which power is better at the moment and follow the strong One party can easily make a profit.
Many masters have emphasized the need to be patient in trading, and perhaps they are right, waiting patiently for opportunities to arise. However, patience is a restrictive emotion. In trading operations, the word "meditation" is more important. Meditation is also an emotion, but it is also a state, so this kind of emotion is not restrictive, it is a natural expression.
The reason why the vast majority of people cannot be calm in trading operations is that they cannot grasp the future trend of the subject matter they are trading, that is, they cannot grasp the future uncertainty (risk), which leads to fear, greed, hope and other subjective emotions.
Under the domination and disturbance of these subjective emotions, operations become irregular, which is the most fundamental reason for losses.
If you can grasp future risks in trading operations, I believe most people will be able to operate calmly. For example, if I promise a certain person that I will compensate for any loss, I will feel at ease when I believe in this person's trading operations.
Learn to let profits "fly for a while"
Many investors always enter the market with an extreme mentality when trading, always expecting to make a lot of money in one or a few transactions. This situation is almost Impossible to exist.
Because market volatility is unlikely to allow investors to make large-scale profits without losses, profits cannot be rushed.
Let the profit "fly for a while"-this is another key factor for making a profit in the transaction. Only by making a small loss and making a big profit can we make money. But it can't be too absolute. Even if you make a small loss, you still lose money if you don't make a big profit.
The continuation of the trend is definitely not smooth sailing, it must be a band-like continuation. Many investors are often shaken out by market fluctuations before the trend is over.
Whether it is short-term or long-term, you should keep the profitable list for a longer time when the trend has not changed or there has been no major reversal. Unless the trend changes, don't be affected by market fluctuations and let the profits fly for a while.
You must learn to maximize your profit under the influence of the trend, so that it is possible to obtain a better profit effect in a relatively short period of time.
Picking up bargains in the chaos
Soros said: The financial market is inherently unstable, especially the international financial market. International capital flows are always ups and downs, with long positions and short positions. Wherever the market is chaotic, money can be made. Identify confusion, and you may get rich; the more chaotic the situation, the more daring and cautious investors will show their performance.
The worse the situation becomes, the higher the rebound will be; the deeper the decline, the more chaotic the market, the more likely there will be a big market.
In many cases, it is often: the market is chaotic, and investors are chaotic along with it. Therefore, we often see panic selling pressure, and investors bravely chase high-level news headlines.
Chaos is a godsend opportunity for calm and objective investors, because it may be an opportunity to pick up bargains and a time to redistribute wealth.
The psychological profile of a failed trader
is an inability to cope with high levels of stress, a negative attitude towards life, a lot of internal conflict, and always blaming others when things go wrong.
This kind of person will not abide by certain principles as the norms of his operation, and it is easier to become a follower of the masses.
Additionally, failed traders tend to be less organized and less patient. Of course, this does not mean that failed traders have all the above characteristics, but only that they have at least some of them. The average person is often not mentally prepared before entering the financial market.
Financial markets are a great place to test one's psychological barriers. Most people will eventually stay away from the financial markets, and only a few remaining people are determined to find out effective operating methods. The final psychological obstacle that such a person has to overcome will turn from the market itself to finding a systematic method of operation.
The most fundamental psychological obstacle for traders is how to deal with risk. For example, the two most basic rules for successful trading are: stop loss and hold long, then you may not want to enter the market with small losses, but instead the small losses will be dragged into large losses, and finally turned into big losses. And in this case you've paid for it.
On the contrary, if you make money on the account, you will want to take a profit immediately. The reason is that you hope that the money in your pocket will not have the risk of losing money, that is, you will make a small profit but lose a lot of money.
If you think that financial operations are just a game, and it is a foul if you do not follow the above two rules, you will naturally follow the rules. I will stop here today and wish you all a happy holiday. If you don’t understand anything, follow me and communicate with me.
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