Foreign exchange trading seems simple, but it is not easy to achieve long-term profitability. Many novice friends enter the foreign exchange market, hoping to grow rapidly, and use the foreign exchange market as a cash machine as soon as possible to achieve financial freedom here.
So how can we quickly surpass most foreign exchange traders and grow rapidly?
Liu Chuanzhi said: "During these years of management work and self-growth, "Review" is one of the tools that have benefited me the most. "
Personal learning review: it can speed up the speed of personal growth.
The team learns to review: it can improve the team's ability to cooperate in combat. At the same time, let the team form an atmosphere of learning from each other and sharing knowledge and skills.
Organizations learn to review: continuous optimization and innovation can be stimulated.
Liu Chuanzhi's success is inseparable from resumption of trading. Similarly, in the foreign exchange market, if you ask for advice from foreign exchange experts, they will all talk about resumption of trading. It seems that every master will closely follow its figure.
Although the role of review is extraordinary, if there is no correct method of review, it is very likely that your review will not bring you much help.
A friend close to the editor told me that he insisted on replaying every day, but it didn’t seem to have any effect, and he felt that replaying was a waste of time.
So as a foreign exchange trader, how can you review the market more efficiently to summarize the market, and then have a positive effect on your own transactions?
Let me share with you a set of beneficial review content and forms that a foreign exchange master has summed up after long-term review training in the process of going from novice to master.
01
Market summary
We have to summarize the trend of the orders we make every day or every other time.
The market can be and simply divided into six situations: rapid rise, sharp fall, slow rise, slow fall, wide shock, and narrow shock.
At the same time, it should also be concluded that:
Which time period out of a clear trend,
Which time period oscillates in which interval,
At what time did the bulls and the bears turn around?
How to evolve between different volatility situations,
What is the combination of high probability among the six situations
…
Through the long-term review of the market, the ability to read the market is gradually improved, because there are more reviews, and naturally you will be more sensitive to some of the regular things.
02
data extraction
There are two ways to extract data. One is to write down the profit and loss of the day, the variety made, how many rounds, and the maximum loss and maximum profit data of the day.
However, really useful statistics must be professional tables. Therefore, the second method is more recommended.
A set of excel tables can be formed in the long-term trading training and practice.
You only need to import your own transaction records into it, and all transaction data will be automatically generated, including profit and loss, handling fee, winning rate, profit-loss ratio, transaction frequency, holding time of profitable transactions, holding time of losing transactions, etc.
Benefits of Data Extraction
Through these data, the whole picture of the transaction can be clearly outlined, and the cause of the loss can be quickly found out.
Some are losses caused by low winning rate,
Some are due to the large proportion of handling fees, that is, the losses caused by too many invalid transactions.
There are also some profit-loss ratios that are upside down.
It is caused by the holding time of losing positions being longer than the holding time of profitable positions.
These can be seen at a glance from the data extraction.
If the variety and order quantity of opening a position are fixed, the winning rate, odds and frequency within a period of time determine the final profit and loss.
So the combination of these three rates is very interesting. There are many three-rate combinations that can make money, which are suitable for traders with different personality types:
Low odds plus high frequency and high winning rate, small profits accrue, which is a typical feature of speculation;
High odds and low frequency plus appropriate winning rate are the characteristics of the band;
The combination of low odds, low frequency, and super high winning rate brings the highest certainty, so it can be scaled up.
The winning rate and odds of a trader in the early stages of growth can be increased at the same time, but to a certain extent, the winning rate and odds will become a seesaw.
Whether to choose high winning rate and low odds or high odds and low winning rate varies from person to person.
Solidifying the winning rate and odds, increasing the frequency can increase profits, but if the frequency exceeds a certain degree, it will bring about a double drop in winning rate and odds, and the gain outweighs the loss.
03
Summary of Wrong and Right Behavior
Misbehaviors, such as: not strictly stopping the loss or slowing down the stop loss, increasing the position after the loss to recover the loss, doing too much where it should not be done, etc. These mistakes should be listed one by one.
Correct behavior, such as: stop loss firmly in dangerous places, follow the trend firmly when the trend comes, and so on.
Wrong behaviors and correct behaviors should be listed in one, two, three, four.
Make a list every day, and you will find out where the crux of the transaction is repeated, and what are the correct behaviors that can really make you generate stable profits.
There is another method I call "behavior table", which is to list the wrong behaviors that you often commit and the correct behaviors that you should do one by one to make a table.
Correspond to one by one after the market every day, tick if you do it, cross it if you don’t do it, and then score, reward if you do well, and punish if you do poorly. It has nothing to do with profit or loss, but only behavior.
04
Big Mistakes and Big Rightes in In-Depth Review
What a big mistake? It is a big mistake to lose a lot in a certain market stage.
Often big mistakes are not caused by one mistake, and if one mistake is not adjusted afterwards, another mistake will be caused.
If you make a mistake and don't admit it, don't correct it, and make it again and again, it will lead to a big mistake.
We want to analyze what caused the big mistake: it may be that the market during this period does not match your method, or it may be a series of changes in mentality caused by the retracement of floating profits.
Similarly, we also need to analyze the reasons for the big profits: Is it because the market is smooth or because the trading rhythm is well controlled? Or both?
The analysis of big mistakes and big right is mainly to analyze whether one's own behavior is correct or not. At the same time, big mistakes and big right often correspond to invalid and efficient market conditions.
What we want to focus on is the invalid and efficient market, and use the screen recording software to record the detailed transaction process and review it.
Which market conditions are particularly in line with the system, and how to make a lot of money, one by one, the belief comes from the profit.
It is also necessary to review the market that is very lethal to oneself. What is the commonality of these market conditions, and what is wrong with the behavior?
After analyzing the big mistakes, it is necessary to propose solutions. The measures must be written down with a pen, and you can look at them before trading the next day to remind yourself.
These measures must be highly feasible, do not come up with impossible solutions to yourself.
05
Refining the Advantage Situation
When you continue to summarize, you will find that in some specific situations, the advantages of making orders are particularly obvious, and the odds and winning rates are very high.
Most mature traders only do some specific advantageous situations, and let go of those opportunities that seem to be profitable but actually have a lot of risk behind them.
One of the ways to achieve stable profits is to only do these advantageous situations, and then increase the weight in this advantageous situation to maximize your own advantages.
It needs to be emphasized that review records should be checked frequently. Looking at the review notes at different stages will have different gains.
06
write as you go
The boss also has a habit of writing while doing transactions.
After encountering a particularly smooth transaction: the reason for the success will be dissected.
After making a big mistake: I will immediately summarize how to avoid this kind of mistake in the future, under what circumstances should I trade with caution, etc.
When the trading conditions are between mature and immature: first write down the possible trend and what conditions are met to open a position, and then observe whether the trend can slowly fall into expectations.
The transaction itself is a process in which the trend is gradually approaching the expectation and the transaction is generated to verify the expectation, adjust the expectation, and finally process it.
Persisting in this way can not only gradually improve the forecasting ability, but also prevent yourself from opening positions rashly when the conditions are not ripe.
Reviewing is the fastest feedback method for learning a task. Learning is about reflection, blindly doing it blindly will only get twice the result with half the effort.
It is actually silly to directly learn trading techniques to improve before you have figured out the essentials and found problems through review. It is like a person shooting in the dark and cannot improve.
I hope that through today's introduction, everyone can have an efficient review method, so as to be able to grow rapidly, and under the continuous summary and improvement, become a master as soon as possible and temporarily make profits in the foreign exchange market.
Source: Internet, the published content is for reference only, does not constitute any investment advice and sales offer, and does not involve any commercial cooperation. The copyright belongs to the original author or organization. Some articles were pushed and the original author could not be contacted. If copyright issues are involved, please contact us through the background.
I hope this article can make foreign exchange traders get out of the confusion when they are in confusion. Old rules, if you haven't understood it, please bookmark it first! Welcome to leave a message to communicate with the editor!
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