1. Remember that becoming a profitable Forex trader is a journey, not a destination. There is no such thing as a trader who only wins but never loses. Try to trade better every day and have fun with your progress. Concentrate on learning skills and improving your trading strategies (skills), instead of just focusing on winning or losing in trading.
2. As long as you make the trade you should do according to your plan, then congratulate yourself and feel at ease about the trade, regardless of whether the trade is profitable or losing. Always think about whether you are correct (that is, pay attention to whether the changes in the market meet your expectations all the time, if it does not meet your expectations, it has proved that you have not fully understood the market and have not kept in line with the trend and rhythm of the market. You have to thoroughly review yourself, otherwise you will lose a lot of money), that is, there is only one key point in trading, that is: only focus on the correctness, not the result.
3. Don't be too complacent when you make money, and don't be too downcast when you lose money. Try to maintain a balance, take a professional view of your trading, and always tell yourself that gambling is about probability.
4. Don't expect this or that to happen in a transaction. What you are looking for is thoughtful consideration of the facts, not speculation.
5. If your trading method tells you that you should make a transaction, but you don’t execute it, you miss an opportunity to make money, and you can only watch from the sidelines. This kind of pain is far greater than if you enter the market according to your own trading plan and do a The pain of making a trade but losing money in the end.
6. Losing money on trades would not have such a negative and long-lasting effect on you if you hadn't been knocked out by a major bad trade. So you have to maintain the risk of every transaction, and your own life experience shapes your understanding of transactions. If you lose a lot of money on the first transaction you make, then you may not dare to set foot in the market for a long time, and the probability of not even touching that commodity for a lifetime is very high. The psychological impact of losing money and failure in trading orders is greater than the physical pain, and the impact lasts longer.
7. Educational experience plays an important role in shaping the way traders view futures trading. A formal business education can give you an edge in understanding the general conditions of the economy and markets, but it won't guarantee you money in the markets. Most of what is learned in a formal university education will not give you the specific knowledge you need to be a successful forex trader. To be a winner in forex trading, you must learn to perceive opportunities that most people ignore, and you must tap the knowledge that is essential to successful trading.
8. Arrogance and pride in making money can bankrupt a person. So every time you make a sum of money, you must rest for a period of time until you feel that you are unfamiliar with this market or no longer belong to this market; if you can't control yourself to trade, you can only take the smallest position. You will definitely lose money, so that you can re-reflect on yourself: Realize that you will lose money at any time, so that you can keep your mentality more objective and better adapt to this zero-sum market, such as once, twice, and three times. %; because people can only maintain their so-called sobriety after being frustrated from time to time; and making money will make people emotional, which will cause their own views of reality to be distorted. The more money you make, the better you feel about yourself, which makes you vulnerable to arrogance. The thrill of making money is what gamblers demand. Gamblers are willing to lose money again and again, just for the pleasure of making money once.
9. Always remember that you are always responsible for winning and losing, not making excuses. Don't blame the market. Losing money provides an opportunity for you to notice what went wrong with the transaction, not to mention attacking it personally.
10. Successful traders quantify and analyze risks, pay more attention to and track risks carefully, and truly understand and accept risks. Because risk and return coexist and are directly proportional, that is, the greater the risk, the greater the corresponding potential return; you must accept your risk emotionally and psychologically before placing an order, so that you can correct the process of each transaction state of mind. Each individual has their own risk tolerance and trading time preferences (speed of reaction to market changes), which makes each trader different. Choose a trading method that reflects your trading preferences and risk tolerance.
11. The foreign exchange market is not a stock market. On the contrary, the futures market is the aggregation of the psychological set of all participants in the transaction. The daily fight between long and short reflects what long and short are thinking every day. Be sure to pay attention to the relationship between the daily closing price and the high and low points of the day, because this reflects the recent strength and weakness of the market, and most importantly, the current market sentiment. The weekly line is always your direction, so the reversal of the K line must not be ignored, even if it rebounds, you must be very cautious. At this time, you should give up your inherent ideas. This is the biggest test of whether you can maintain flexibility and flexibility , which is at the same time the most important in the market. (You have already learned this lesson)
12. Never go long just because the price is low or short just because the price is high. Never add to a losing money list. Never lose patience with the market. There must be a suitable reason before making any transaction. Remember, the market is always right.
13. Traders need to listen to the market. To listen to the market effectively, a trader needs to pay attention to his trading method and, likewise, to pay attention to himself as to the chart and the market. The challenge that traders face is: to understand whether they are correct, whether they can adapt to the market, what kind of person they are, and then firmly and consciously cultivate those qualities that are conducive to their successful trading.
14. As a foreign exchange trader, the farther away from hope, greed and fear, the greater the chance of successful trading. Why are there thousands of people who analyze technical charts well, but really good foreign exchange traders are so rare? The reason is that they need to spend more time on their own psychology than on analytical methods.
15. If a worker wants to do a good job, he must first sharpen his tools. Lincoln also said, "If I have to spend eight hours chopping down a tree, then I will spend six hours sharpening my ax." In foreign exchange trading, this motto can be understood as: research and learning are very important. important. The time spent preparing for the exchange will always greatly exceed the time spent placing an order and watching the order.
16. Most traders are less patient than the market. There is an old adage that the market will do whatever it takes to drive most traders crazy. As long as someone goes against the trend, the market trend will continue.
17. Optimize your trading varieties to the greatest extent, and continue to work hard to optimize your position structure.
18. Don't expect a certain amount of profit, just enjoy the feeling of surfing on the sea. I hope that those who swim in the sea can be happy, and those who are on the beach can also be happy and unrestrained.
19. Foreign exchange margin is different from stock operations. Foreign exchange is highly leveraged and efficient, and it is generally difficult to hold it for a long time. In foreign exchange, distinguish between tides, waves and ripples. The general trend is like a tide, which meets once in several months or years; the medium trend is like a wave, which lasts for several days or weeks; random is like a ripple, and there is no trend at all. Grids are the way to go if you want to monetize Ripple.
20. Global investment focuses on four levels:
1. The real-time background and issues of international politics, geopolitics, and great power strategies. Issues at this level are factors that form the medium and long-term trends of the investment market.
2. The overall operation of the international economy is good or bad, on the one hand, it is related to the investment market, on the other hand, it is related to the demand for resources and the balance between supply and demand, which will create investment value.
3. The international financial situation is relatively stable, and the structure distribution, total amount and scale of hot money will also be relatively stable, so that the conventional mechanism in the investment market will be more fully revealed, and the abnormal mechanism will be less obvious, and vice versa. some more.
4. The structural distribution of hot money (referring to funds that are separated from the division and allocation of economic resources and characterized by profit-seeking.) in different financial markets.
21. The development of the market is random and unpredictable. The only thing you can do is to wait silently, quietly waiting. At most, it can be reminded in the form of a signal during a specific period, and take a break or engage in other things before the signal does not occur. But the most difficult thing to do is: people who engage in the trading industry based on freedom are relatively casual in character and lack patience, which inevitably leads to poor execution.
22. Programming tests are a good way to save a lot of time and cost. Let ideas be proven as quickly as possible. The purpose of testing is to verify ideas, find out the relevance of various methods, and quickly accumulate experience. So that you can quickly move from complex to simple. Any method has its advantages and disadvantages, and expecting perfection can only lead to the bottomless abyss of optimizing data.
23. Foreign exchange trading has the characteristics of starting from scratch. The premise can only be realized on the basis of your stable profit. This refers to stability, not quick and sudden wealth. A stable trader with a monthly profit of 10%-20% has an astonishingly large market capital. It is you who choose the capital, not the capital that chooses you.
24. How can foreign exchange trading be profitable? Simple - complex - simple - a process of tempering.
1. The first process: easy.
The so-called "simple" here, personally think that "simple" is more appropriate. There is no way to operate, it is completely based on feeling. Psychologically, I have experienced the process of secret joy - delusion - excitement - nervousness - loss - regret - annoyance. One type of people is relatively rational. Since then, I have embarked on the road of seeking knowledge. MACD, KDJ, RSI, Boolean Lines, Wave Theory, Chaos Theory, Gann Theory, Japanese Candles. . . . . . Variety ----- a strong leap to the complex process. Another category is still not convinced. Learn by doing. Change your mind before depositing money, and then liquidate your position. High-frequency operation, change again and violently. . . . . . addicted to it. Insomnia and staying up late are commonplace. Lost mood at work, irritable attitude, depression, not talking much, looking for information everywhere, saving expenses, no savings, credit card deficit, started lying, cheating friends, bragging for profit , In the end, I was desperate, and I had no choice but to quit... I don’t really give up, I visit the forum whenever I have time. Because the maze of foreign exchange is difficult to solve, I have been trying to solve it all my life. Both to prove oneself, and to improve the quality of life. This is the inner demon of man. A large number of people were eliminated in this process, and those who remained basically began to enter a complicated process.
2. The second process: complex.
1. Complexity at the chart level: in order to look for resonance. A lot of effort went into choosing what level chart to use as a reference. 2. Complicated operation methods: expect to find out the law between trends and oscillations. The combination of trend indicators and oscillator indicators. 3. Complicated selection of currency pairs: expect to find different characteristics in various currencies. Do this, do that. 4. Ideological complexity: the study of philosophical thought, dialectics, psychology, Buddhism, and martial arts. 5. The complexity of detection methods: programming test, EA test, optimized data, whimsy. During this process, there are many people who have been unable to follow the law throughout their lives. Either getting deeper and deeper, or going the opposite direction, or never being able to penetrate. People with higher savvy have a shorter time, and those with poorer savvy have a longer time. During this period, endurance and perseverance play a decisive role. More importantly, there must be a lot of time for thinking about problems, not obsessing about them. Contact life. Summarize the nature of all things in the world. Don't be fooled by some false images with good names. Open-minded, not superstitious, not feudal. To return to the simple process. Most people will die in this night before dawn. Can't see the sun of tomorrow.
3. The third process: simple.
Signal——Condition Satisfaction——Execution ①High satisfaction degree, double normal position execution; ②Mediocre satisfaction degree, double normal position execution; ③Low satisfaction degree, wait and see or execute better than the signal price (beat the signal principle, As long as your signal test is not a loss, beating the signal is equal to profit). Signal: Just find a signal and test it. As long as you stick to this signal, practice makes perfect. After penetration, all signals are similar. It's just a slightly better existence. don't care too much. There is no perfect thing or person in the world. Do not seek perfection, but seek truth; if you are willing to give up, you will gain if you give up; the only thing you can do is to control your heart, and practice makes perfect. This is simple -complicated -simple -simple -the summary summary: Can you adhere to a method until you are skilled in the practice? This is the point! They practice simple movements irreplaceably, and often simple movements are the most common-sense movements, the most direct movements, and the deadliest movements. Everything has a key and a solution, but often what is the trick? It's common sense and the easiest way. In foreign exchange trading, we should also simply adopt simple signals and persevere in continuous repeated training. When the signal is generated, it forms a conditioned reflex to distinguish true from false --- this is the trick.
25. What is the secret: The secret is common sense, the simplest common sense, and this is the deadliest secret; for example, whether the non-agricultural employment before the 2012 U.S. election is positive or negative for the dollar, it is of course positive , This is the simplest and most basic common sense, and it is also a wise and calculating philosophical thinking
; Therefore, when you do not understand the characteristics of its varieties and various markets, or cannot insist on understanding its characteristics, you must not participate in the operation. Let us boldly imagine what kind of natural phenomenon or event the foreign exchange trend is more similar to. 1. The natural growth cycle of human beings and the universe, birth-growth (children-youth-middle-age-retirement-old age)-aging-death (this is the holography of waves); 2. Zero-sum game, exchange between large and small , anti-popular thinking, never able to penetrate; 3. In the short term, it is more like water flow, without a specific shape and flow direction.
27. There is an essential difference between simulation and real warehouse: it is a psychological problem that focuses on process and results. When simulating operations, you may only focus on the process, and when operating in real positions, you may only focus on results. Here is still a question of whether you really like this line of work from the bottom of your heart. People who really like enjoy the process, and good results are naturally produced in the process of enjoying. What is the correct simulation? First of all, you must have the maximum limit of a single loss, and secondly, you must have the maximum limit of retracement. In foreign exchange trading, mistakes are common, because events do change too fast, and people's fixed thinking cannot adapt to this rapid development for a while. change. It takes practice and repeated mistakes. It is not possible to gradually reduce mistakes until mistakes appear and form a conditioned reflex. Then, you may no longer lose or make profits at this time. Therefore, sticking to one method, one currency, and one time period of practice is to better adapt to this kind of practice of making mistakes. When the energy is concentrated on one point, the effect produced will definitely increase steadily. At that time, unintentionally, you will make steady profits.
28. The famous "Watch Law": With only one watch, you can know the time; if you have two or more watches, you cannot determine what time it is. More clocks will not tell people more accurate time, but will make people who watch watches lose confidence in accurate time. What you have to do is that when the market is not conducive to the test position, you can no longer see it, and you only know that it is cheaper to enter now. When the market is in favor of your own judgment, you are afraid of reversal and dare not increase your position. In the end, you lose more than you win. Or novices are eager to increase their positions and expand their positions. When the market finally reverses, it turns victory into defeat. A veteran has a stop loss price and rarely exits the market with a stop loss. His stop loss price is set to control the largest single risk or power outage, similar to the safety rope of an acrobat. Because the technical closing signal is always sent before the capital stop loss signal. In and out are smooth. Novices frequently stop losses, because they want to win and are afraid of losing, and artificially reduce the stop loss position. They often look in the right direction and are driven out by the disorderly fluctuations of the market.
30. Like other job seekers, after being familiar with the specific methods in foreign exchange trading, you can also accumulate a lot of experience, so as to distinguish true and false signals or make reasonable capital allocation for each signal. Even if it is a junk signal, profit can be achieved by adjusting the proportion of funds for opening a position according to the probability after being familiar with it.
Summary of foreign exchange margin trading thinking:
1. Psychological characteristics of failed traders 1. Unable to cope with high pressure; 2. Possess a negative attitude towards life; 3. There are many conflicts in the heart; other people. 5. Does not stick to principles as the norm for its operations. 6. It is easier to become a follower of the crowd. 7. Lack of organizational skills and patience.
2. Construction of trading knowledge: Self-cultivation and characteristics of successful traders: 1. Clear thinking, sharp perspective, and ability to discover investment opportunities earlier than others. 2. Looking forward, do not let past results and habits affect future investment behavior. 3. The ability to start all over again──Do not bow to failure or blow. 4. Take responsibility for your actions, good or bad. 5. Completely abandon self-esteem, never keep your own point of view, only pay attention to the point of view of the market. 6. The relentless pursuit of success. 7. Positive attitude──Will not treat the problems in life negatively, and only enter the transaction after fully solving the problems in life. 8. Don't rely on luck, apply a consistent strategy. 9. Believe in your own decision-making, while always paying attention to objective changes. 10. Goal-oriented point. 11. Good self-control, inhibiting any personal tendencies or characteristics that run counter to success. 12. Strong determination and self-confidence. 13. Very sensitive to numbers related to money and finance. 14. Have investment preferences, not purely for money, investment is a very pleasant thing, in line with interests. 15. Not easily influenced by others or other things. 16. Passionate about investing.
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