Counting down the many hurdles you have gone through in trading over the years, what you have experienced, or are currently experiencing, I think we all seem to have known each other, staring at the market, loss orders, confusion about fundamentals or technical aspects, and how to do it is not the wind of the market. Wait... Write it down, make a sort out for yourself, and make a slate in front of the horse for everyone to facilitate your progress.
(1) What is the longest thing you have persisted in so far?
At that time, I kept asking myself this question. In addition to the exam, it was an online game called "Hero Kill".
I have been playing "Hero Kill" for five years. At that time, I thought about it, if I was doing something that could make a living for these five years, would it be a different situation.
What would you choose for a living? At that time, I had a bold idea, a long-term and a short-term. Long-term investment decisions are transactions.
For the understanding of investment, Cai Chongxin said a word, which impressed me very much, "investment, no risk in the downside, big profits in the upside".
"Economics" generally defines 10 years as a business cycle.
My judgment is derived from these two points - China's economy in ten years, and the process of RMB internationalization will make strides in ten years. In my ten years, the lowest gain is to earn experience, and the greatest risk is to invest time; the greatest gain is self-contained, and the smallest risk is to invest time.
"No risk on the downside, big profits on the upside"
Make a decision to treat the transaction as a long-term investment for a period of ten years.
Of course, whether I can eat this bowl of rice depends on practicing the truth. The 100% probability of success is 1% luck. Without this 1%, it would be useless to invest another ten years. In the end, I reached an agreement with myself, There is a two-year test period in the early stage. If it is effective, continue to complete the next road. If not, give up immediately.
(2) Staring at the disk is a waste of people and money
I have a deep understanding of staring, and staring comes from lack of self-confidence. Lack of self-confidence, resulting in a very limited life, and easy to give up the initiative.
The root cause of lack of self-confidence is that the strategy has never had a foothold, and there is no core theory as a strong support.
Thinking and attitude are result-oriented.
Attitude guides emotion, thinking guides behavior.
Without a confident attitude, holding positions will be negative; thinking that there is a high probability of loss, unconsciously repeating the market, and eventually suffering from hardships in holding positions or fear of floating losses, and manually closing positions.
I often reflect that I have experienced these emotions in the early stage of researching the firm offer:
"Ten people can set up a company, 100 people can also set up a company, and 1,000 people may already be a listed company. Do you want to watch each employee one by one? Do you have to watch the market when doing transactions? Is this your opinion?"
"Did you solve the problem while watching the market?"
“Of course not, it just made the problem worse.”
"I'm getting less and less confident, and I'm getting more and more anxious about the list that has already made a trading plan. Should I enter the market or give up?"
"Oh, it's good to enter the market; oops, those who didn't enter the market are making money, and the orders that entered the market are losing money"
"Don't do it, don't do it, don't read it, don't watch it, the more you look at it, the more annoying you become, the more you stare at it, the more confused you become"
...
Even if the market is running according to the trading plan, I still hesitate when making a decision to enter the market again. I often ask myself silently, "This method worked in the last transaction, so will it work in the next one?"
In almost every trade I was mentally hampered by a lack of self-confidence. After that, I stayed away from the market for a month.
I am very eager to solve the doubts in my heart. No amount of replay is useless. It is necessary to know the core of the transaction and establish a strategy based on the core of the transaction. Otherwise, other methods will definitely lose a lot of money at some point in the future, because the market's ever-changing strategies fail.
With the trading strategy established with the core of the transaction, every plan will be at ease, the stone will fall to the ground, "not confident" will be wiped out, and there will be no more tracking.
(3) "Dow Theory", "Wave Theory" and "Gann Theory" are Mingguang
I admire "Dow Theory", "Wave Theory" and "Gann Theory" very much. At any time, I will seal these three books as the holy book of trading.
These three trading books cover all aspects of the exchange, including price, time, proportional relationship, news, economic cycle and so on. These three books are thoroughly understood, and the trading theory is sufficient. I personally think that 70% of the distance to success has been completed.
The fate of these three books stems from being a guide. At that time, I was often confused about whether to focus on technical analysis or news analysis. he told me
① "Is the information you know timely? Is it accurate? Is it comprehensive? Is it effective? Is it the key point?"——No
②"Do you have first-hand information?"——No, all the information comes from Chinese websites, and the Chinese websites are also reproduced from foreign language websites
③"When you analyze information, are you the main body of thinking, or the market? Is it credible?" ——I am the main body. It's all probability, and there will always be times when it is wrong.
④ "In this market, what is it that you can compete with international giants and large institutions?" —— K-line chart
This is why I refuse to use MT4 software to analyze the market.
The words of my friends remind me, I will always remember them in my heart. After that, I shifted the focus of all my research to K-line. To make a firm offer, only look at the K-line chart, without considering any fundamental analysis. Minimize personal opinions as much as possible, the more you can increase the success rate of orders.
I asked him what book to read was the most valuable for a firm offer, and he replied "Wave Theory".
Since then, the book "Wave Theory" has been with me to this day. I have read the book a hundred times, and amazed again and again, it is so wonderful that I can't describe it in words!
When selecting books, I found that almost every store will sell the three books "Dow Theory", "Wave Theory" and "Gann Theory" in bundles, which may be suspected of increasing sales, considering that the other two books are also popular in the trading world. With a pivotal position, the three books can go hand in hand and be sought after by traders all over the world. There must be something wonderful about it, so they won all three books by accident.
Since then, because of these three books, my trading outlook has been completely illuminated.
(1) "Dow Theory" is the core
There are two sentences in the book: "The stock market is a barometer of the market economy" and "History always repeats itself"
These two sentences indicate the two core elements of the market and the relationship between them
①Core elements: price, time
②The relationship between the two: the price runs periodically and repeatedly over time
"Wave Theory" and "Gann Theory" are based on "Dow Theory", using the golden ratio of 61.8% to calculate the position and time of wave rise and fall.
(2) "Wave Theory" price and price, time and time
The book "Wave Theory" separately expounds the rise and fall and time of price movement, focusing on the proportional relationship between the rise and fall between wave shapes, that is, the numerical relationship ratio on the vertical axis of the coordinate axis.
The ratio of impulse to correction is 5:3 - 60% is close to 61.8%
Why is the 60-day moving average an excessive parameter for the long-term transition in the middle of the wave-the 60-day is the dividing time point for half a year, half a year to a year.
How to distinguish complex adjustment waves between the 10-day and 60-day moving averages——When the 10-day and 60-day moving averages linger, first look at 61.8% between the bands, and then look at the previous high and the previous low. Unknown, so the two linger
The price height is changed to the length of time, the adjustment stage; the time length is changed to the price height, the impulsive wave stage - draw a vertical line to make a triangle to compare the angles, and determine the trend.
...
I take "Wave Theory" as a foothold, and make a comprehensive formulation of all trading strategies according to the content in the book.
I found a rule, " No matter how large the period K-line is, it must be decomposed by the small-period K-line ". No matter whether the K-line is large or small or small, it is splitting the golden section line of the K-line. This point clarifies my entry strategy. If you want to be able to hold positions in a medium-to-long-term strategy without putting all your eggs in one basket, it is best to build positions in batches. The scientific ratio is the golden section line of 61.8%
> Admission Layout
> Retracement
> Fixed take profit
> Close positions manually
These four points are all planned around the 61.8% golden section line.
But there is a fatal flaw, "the appearance is always not just right".
"Just Right" - Timing
"Timing" - the intersection of price and time
"Intersection" - Gann Fan Line
(3) "Gann Theory" price and time
"Gann Theory" is the finishing touch of "Wave Theory".
Elliott clearly expressed his regrets in the book "Wave Theory"-"Mathematical Calculation of the Relationship between Time and Price"
A few years later, "Gann's Theory" was published. I think Gann's greatest contribution is to make up for "the time effect on prices is expressed in mathematical proportions, and Gann's fan-shaped line.
When I use it, I pay more attention to the three proportion numbers of 50%, 61.8% and 100%, and adjust the Gann line.
The Gann line is similar to the Gann line, and the Gann line is more focused on showing the price security range of the band when it is running.
Among them, the 50% line of the Gann line is the key dividing line for the long-short trend conversion. The picture above is a brief explanation of how to use the Gann line by taking US crude oil as an example.
Using the Gann line as a reference is very helpful in predicting the timing of trend reversal.
In retrospect, when it comes to trading, I think it is not accurate to define trading as a game between buyers and sellers. Buying and selling are just talking about prices, but ignore time. After all, all investments are time for space!
Now, let me define a transaction again, and I will conclude that "making a transaction is a mutual conversion between time and price."
From space to time, and then from time to space, transaction results are magnified in a short period of time, or consumed in a long period of time.
I hope the above content is helpful, or inspiring, or has new ideas for everyone.
I would like to communicate with you and be a mutual ally on the way of trading with each other!
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