If a trader is too smooth, it is easy to make money too easily, and a liquidation is often on the way. Time will make everyone realize that trading is not easy. The sooner you realize this, the sooner you can embark on the road of a real trader. The same is true for the community friends who shared today. Let’s take a look at his experience.
The following original text:
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My content is not too much about technical analysis, I just share some of my experience and lessons in this market over the past year, hoping to communicate and discuss with you.
Below I will start with four topics, and I hope you can discuss them together.
First of all, the first topic is: the logic and probability of transactions
When I first came into contact with foreign exchange, I saw many very powerful masters using certain methods to make a lot of money, so I started to learn foreign exchange knowledge and models crazily. At that time, I hadn’t joined the Asa community. I went to the morning session of the Asa community to share, "stealth learning" was backed up within one trick, and I successfully used this method to make money, and it was tried and tested, and then I frantically went to find this model variety to do it, but a week later, In the same way, I lost money.
I began to wonder, why did the model that made me money make me lose money? As I learned more technical methods later, including moving averages, harmonics, orders, etc., I gradually understood that the logic of traditional technical analysis is that because of this model, when you enter the market at this position, the price may follow Your model goes, and most novices think the logic is that because of this pattern, this position comes in, so the price will go according to your model.
I don’t know if everyone agrees with my point of view. To sum up the logic is: it’s not because of this model that the market will go like this; but because of this model, the market may go like this.
After understanding this logical relationship, I realized that there is no so-called holy grail in the market, and some only count the probability of success of their own models and the profit-loss ratio after success, and then I understand why many veterans say that the four words of profit and loss have the same origin as the market The greatest certainty lies in uncertainty.
To put it more simply, the same source of profit and loss means that what makes you money will also make you lose money, because the market itself is uncertain. Then someone will ask, what makes you money will also make you lose money, so can you still make money? The answer is yes, stable profits can be achieved by controlling the winning rate and the profit-loss ratio.
The second topic is: the randomness of trading, I think this is the easiest mistake to make
There is no randomness of the trading system. That is what we often say, without doing a good analysis, looking at the fluctuations in the market, if you feel that the rise is good, you will buy in, and if the fall is fierce, you will chase in. There is no entry point, profit stop point, or stop loss point. Some people find it very troublesome to control the risk of positions and positions. There are so many rules and regulations. However, it is precisely because of the arbitrariness of a certain point, such as the arbitrariness of a certain point, such as the arbitrariness of a position or the arbitrariness of a stop loss, which may cause the account to explode. I don’t know if you have However, due to the randomness of their own transactions, they caused relatively large losses.
I often lose money on the same day, and I want to earn it back by increasing my position, and sometimes I get beaten both long and short
The third topic is: Consistency of transactions, how do you understand the consistency of transactions?
Then let me talk about my understanding of consistency
In fact, I have changed many trading methods and tried many trading systems for more than a year, but none of them have achieved good results. I have been thinking about how to achieve stable profits. Now I understand that stable profits are not difficult, but the difficulty lies in maintaining Consistency of transactions.
Many people have traded foreign exchange for many years, entered many exchange groups, and learned various trading methods online, but they were unable to make a profit in the end. I want to use a sentence that Bruce Lee said to explain the truth: don’t be afraid that your opponent has ten thousand ways of kicking. I am afraid that the opponent has practiced one kick ten thousand times. Therefore, after determining the trading system, what you need to do is to keep repeating, repeating and repeating, summarizing, summarizing and summarizing, researching your own trading system very deeply, to what extent, you have to know your own What is the approximate winning rate of the trading system, so that you will not worry about gains and losses once or twice. In fact, these are the reasons. When you really focus on a model, you can become an expert in this model, and you can make a profit very easily. This market does not need all-rounders, what is needed is specialists.
Secondly, there is also the need to maintain the consistency of trading varieties. As the saying goes, thousands of people face thousands of faces, and the same goes for trading varieties. Some varieties have a high winning rate, while others have a low winning rate. Don't play cards according to the routine. Take the British pound for example, I really find it quite difficult, maybe this product is not suitable for my trading system, haha. In short, in addition to maintaining the consistency of the trading system, the consistency of the trading varieties must also be guaranteed. It is better to be cautious about unfamiliar varieties
The fourth topic: trading mentality
When entering the community, Mr. Asa told us that the three-state system is about the state of people. At that time, when I first came into contact with foreign exchange, I felt that there is nothing to say about the mentality. As long as the technical method is good, the mentality will naturally be good. Now I don’t think so anymore. When I was making orders myself, for a period of time I was doing very well, and I turned over without knowing it. What followed was self-confidence. I felt that I was a talented player, and then I started not to abide by Trading rules, no stop loss, carrying orders, moving stop loss, etc., caused big losses. At that time, I felt that I was an idiot. Thinking about it now, it is this blind self-confidence that hurts me. I feel that I am always right, and I don’t want to admit that I am wrong when I do something wrong. I keep finding reasons for myself to stop losses. Now I understand that it’s not how good you are, it’s just that the market is willing to give you these profits. If the market doesn’t give you these profits, you have to be obedient and stop your losses obediently, or you will be taught a lesson by the market.
Finally, taking this last opportunity, I would like to talk to you about my understanding of stop loss
Stop loss is a topic that cannot be avoided in trading, but how to face it correctly
It will be very pleasant to talk about stop profit, and it will always be a bit heavy when it comes to stop loss, but is this really the case? But have you ever thought about why you need to stop loss and what is the purpose of stop loss.
Isn't it just to prevent the extreme market from blowing up? Isn't it just to prevent large losses? Isn't it just to protect our account? Everyone also knows that the recent gold has been so ruthless in the skyrocketing skyrocketing. No account that does not stop loss can survive such violent fluctuations in gold. That is to say, as the saying goes, if there are green mountains left, you are not afraid of lack of firewood.
It turns out that stop profit and stop loss are our good friends, just like the two planks of a bucket. The stop loss plank is too short, and no matter how long the profit plank is, it can’t hold much water. And I think no matter how much profit I make, I can’t stop it Loss, the account is just a flash in the pan, and I will eventually blow up the account if I don't set a stop loss or increase my position in a certain extreme market in the future. Yes, anyone can learn technology in a short time, but it takes a long time to accumulate experience and knowledge of the market.
I think only by learning to stop loss can I feel safe in my account. I also have a sense of security, and I am not afraid of the future market, because I know that if I make a mistake, I just stop the loss, and I will not carry orders. My account It won't blow up once, and I will have more confidence to make the next list.
Some people say, why can't I live this life well even though I already know many truths in the world? I think only through experience can one grow. Just listening to other people's reasoning is just a superficial understanding, not a real understanding. The same is true for foreign exchange. I am still on the road, and I am still experiencing and verifying these principles until I finally internalize them completely. Finally, I would like to thank the Asa community for giving me this opportunity to express my views, and thank you for your support
Comments: The content shared this time is relatively large and concise. From the logic and probability of trading, the randomness of trading, the consistency of trading, the mentality of trading, and stop loss and profit, etc., he has experienced a long-term Exploration and verification summed up the truth. It is of great reference significance for all friends who have just started trading, and it has triggered more self-thinking. In fact, trading is like this, standing on the shoulders of giants, and then constantly summing up your own logic on this basis, that is the best and longest learning method.
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