1. Simple things can be successful if repeated.
2. The same source of profit and loss. How much money you want to make depends on how much risk you have to take. There will be no pies in the sky, the market does not create money, always remember this point
3, the taste of faith is sweet, that is to say, you have to build your own faith.
4. A verified and effective system that can stabilize profits, coupled with your own trading rules that suit you, coupled with fund management, and then diversifying risks with multiple varieties, you can make money in the long run.
1. My understanding of foreign exchange
First, let me share what is foreign exchange, that is, my understanding of foreign exchange. All wealth comes from a clear and correct understanding of one thing. So what is the nature of the foreign exchange market? What is foreign exchange trading? What is the key to success?
I think the essence of the foreign exchange market is a game, a game between people, a game of mentality, a game between big funds and small funds, a game between the main force and retail investors, and a game between professional fund institutional investors and retail investors game between.
What is our deal? I think what I trade is one of our thoughts, one emotion. Many people think that what the futures market trades is gold, crude oil, copper and other commodities. In fact, those who do not do hedging or delivery but speculate are not trading commodities but thoughts and emotions. Based on the collected information, if you think that gold will rise or crude oil will rise, you will go long. After entering the market, you will feel happy when you make money, and then you may take profit and leave the market or continue to hold positions.
When you lose money, you will feel unhappy and depressed, and then you may stop the loss or increase your position. This emotion will guide you to make decisions, so how to control your thoughts and emotions is the key to successful trading.
In other words, "you" is the key to success, not the information in the market. Your thoughts and emotions form your entire trading process, which is the core part of the entire trading against the trend. Maybe you are doing a lot of research on the fundamentals, and have a favorable understanding of the macro, but the real core success factors still rest on you. There is a saying in coaching techniques: I am the root of everything, and what to do depends on myself. In other words, if you want to be a winner in investment, you must first have the qualities of a winner.
People are divided into two sides, internal and external, one is internal strength, and the other is external attack skills, which may be some moves. A qualified trader has to go through three stages (which are further divided into 5 sub-stages):
1. Primary stage: The primary stage mainly studies technology and capital management. Technology is mainly a set of methods for opening and closing positions, that is, based on what to open and close positions; such as the moving average, go long when it crosses the 22-day moving average, and short when it crosses the 22-day moving average. This is also a set of methods; basic techniques and strategies must be mastered. This is the foundation and premise of survival in the market. Fund management emphasizes position and risk control; position is to minimize losses when losing money, and earn as much as possible when earning, that is, the position can be heavier when transferring; (such as floating profits and increasing positions) risk control is to control the withdrawal of funds , cannot cause a large retracement of funds due to a mistake.
2. Intermediate stage: Mainly learn trading concepts and psychology. Trading philosophy refers to the integration of concepts in technology; such as the concept of trend following, arbitrage, and intraday trading. The concept of trend following is based on a small gain, a low winning rate, a small stop loss, and a relatively large profit and loss. The short-term concept of the day is to win by the number of times, that is, to win the market with a large number of transactions and a high winning rate.
A set of methods corresponding to a set of core concepts is a complete set of strategies, plus fund management. Every idea is like a human soul. You have a concept, you want to do long-term value investment, do you have the mentality to withstand the fluctuation of this market?
3. Advanced stage: mainly actual combat, to cultivate comprehensive quality.
2. Triple Filter Trading System
What is a trading system? The trading system is a complete system of trading rules. A method refers to a general trading idea. A technique refers to an operation skill of buying and selling. A trading system is a combination of methods and techniques, including the selection of market entry skills and timing, how to determine the size of positions, how to protect funds, how to make profits and stop profits, etc. The moving average is a trend indicator, which is only suitable for a trending market, and it is invalid when it enters a volatile market. In order to solve this problem, a filter system is needed, adding some conditions.
The triple screen approach analyzes the entire market through several time frames with oscillators and trend indicators. It can effectively resolve conflicts between indicators and during trading weeks.
The first filter: determine the direction on the long-term chart; refer to trend indicators, such as moving average, trend line, BOLL, etc.
The second filter: select entry and exit points on the middle chart; refer to shock indicators; such as: MACD, KDJ, SAR, CDP, etc. The third
filter: cooperate with other entry and exit conditions to formulate a complete trading plan; generally based on experience and personal Get used to choosing a method that suits you to make a trading plan; such as: fund management, breakthrough follow-up, selling high and buying low, etc.
3.
Those who have some powerful trading rules should be short-term masters. They are naturally suitable for short-term trading and have strong execution ability. When you think that your execution ability is not strong, when you think that you can’t make a move, when you can’t cut a position, or when you can’t open a position, how to solve it when you dare not open a position? You can't solve it by your own ability, because it is born, so some traders are good, that is, they rely on talent, they are born to be traders, and they are born to be traders.
Most people are not suitable, it can be said that 90% of people are not suitable. What do you rely on at this time? You can only rely on rules, discipline, and the team to solve it. If you can’t do it yourself, let others do it for you, right? But the rules still need to be established by yourself, the pain is still your own pain, and others are just doing it for you.
A proven and effective system that can stabilize profits, coupled with your own trading rules that suit you, coupled with fund management, and then diversifying risks with multiple varieties, you can make money in the long run.
Fourth,
the real masters of the belief system, they do not lie in moves, but in internal strength. What is inner strength? It is faith, you have to truly believe in your technique and in your moves.
Mediocre traders trade with technology, while top traders trade with belief, such as Mr. Fu Haitang, whose belief is the way of heaven. What I think is right, even if people around me oppose it, I will stick to it, and my belief is very firm. People with strong beliefs can do amazing things even with the simplest trading system.
How to form a firm belief in your own trading system? The answer is: Familiar with the system, understand the system, integrate the system.
Trading techniques are like martial arts moves, there is no need to make them too complicated, a simple move can be practiced repeatedly, and it can be practiced instinctively. Only then can man and sword unite, knowledge and action unite.
Don't put too much energy on technology. In fact, technology is very simple. The difficulty lies in the unity of knowledge and action, just like what Mr. Wang Yangming said (knowledge to the extreme is action, and action to the extreme is knowledge)
. People mistakenly put this belief on one or several transactions, and they are attached to a certain product or a certain trading opportunity; if you jump out and put this attachment on your trading system, you will not be attached to it. Focus on a certain transaction, but stick to the firm implementation of your own trading system, and repeat the simple and correct method, you will succeed.
V. Investment Philosophy
Investment philosophy is the highest wisdom about investment, which consists of beliefs and trading rules. Do whatever you believe in! What you believe depends on what you do. A complete investment philosophy usually includes: views on value, views on risk, views on investment itself, and so on.
How you believe, how you live - how you believe, how you invest.
Having a set of core philosophies is fundamental to long-term trading success, without which you will not be able to stick to your position or trading plan during really difficult times.
A trading philosophy cannot be passed from one person to another, you can only get it with your own time and effort. So trading is an art.
6. Cycle Theory
This is one of my insights from 18 years to now. 6 to 8 hours a day, 20 three-minute K-lines per hour, there are 120 to 180 three-minute K-lines in one day; there are 20 trading days in a month, and there are 130 to 160 30-minute K-lines in about half a month; There are 120 to 160 one-hour K-lines per month, and 120 to 160 2-hour K-lines in two months; there are 20 trading days in a month, and 126 daily K-lines in half a year...you count the K-
lines The number of roots, this is a cycle. 120 candlesticks can form a complete cycle. That is to say, how high is the level of the market, you have to be very clear about how high you can do it, you can do it for one day, for half a month, for one month, for two months, or for half a year, Different levels correspond to different market conditions. If you are doing a one-month level, how long should you choose as your entry point?
There are 120 in one hour and one month, which can form a complete cycle. Basically, I can accurately predict that it will rise by 10% in the next month. If you can accurately judge this kind of market, you can accurately grasp each rhythm. Why can't you make money? Might be wrong cycle.
The premise of these is that you can judge when the market will rise? How long? How much did it go up? After these three problems are solved, you can make money by matching the corresponding strategies, which also requires constant practice.
Trading is a business.
Trial and error is the eternal theme of traders.
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