The charm of wealth in the financial market tempts you, me, and countless people with dreams to come and go.
When we first entered the market to do transactions, our understanding of the market was relatively one-sided, but we were all full of confidence; then after bumping into walls one after another, our confidence gradually disintegrated, and only then did we understand that trading is not easy , realizing that it is necessary to learn.
Then, we started a crazy way of learning. We had contact with various theories, technologies, indicators, etc., and various websites and forums also left our footprints.
After going through a period of learning, our thinking gradually became clearer, and we also had a deeper understanding of the market. Wandering in the ocean of knowledge about trading allowed us to rebuild our confidence.
However, after learning more and more things, are your trading results not satisfactory, and do you still feel confused from time to time?
Then why did you only learn a few things and feel that your trading ideas are quite clear; but after learning more things, you feel more and more confused and directionless?
In fact, one of the big reasons is that when we first entered the market, our understanding of the market was seriously insufficient. At this time, we need to continuously add to learn trading knowledge, but after adding to a certain level, we need to do subtraction instead. .
Why do you say subtraction after addition?
When most people just start trading, they know that there are ups and downs, but they know almost nothing about the nature of the market and the logic of price rises and falls. Sometimes you may be lucky and still make some money, but slowly you will have to return all the principal with interest to the market, and you will have to pay a lot more tuition fees.
Then, I realized that I didn’t know anything about the operating laws of the market, and I began to feel chaotic and confused. At this time, the learning I started was some relatively basic knowledge; or after I learned a certain theory, I gradually felt that the chaotic market became clear. , Just like a myopic person wearing glasses, the blurred image becomes clearer.
After tasting the sweetness, it will prompt us to study more diligently, that is, to keep doing addition. This is also the time of fastest growth, and our understanding of the market is constantly deepening.
However, when the accumulation reaches a certain level, because we have learned too much and too complicated, even many theories and technologies are in conflict with each other, then we will feel confused again, just like if you are short-sighted and wear multiple pairs of glasses It will not make you see the same truth more clearly; at this time, in fact, it is more important to simplify and eliminate the chaff, that is, to do subtraction.
In other words, when you have a relatively comprehensive understanding of the operating nature of market prices, you need to build a relatively streamlined system to serve your transactions.
And this system must be formed with one tool as the main body and a few other tools as the auxiliary, that is, each tool in the system must be divided into primary and secondary, and cannot be juxtaposed with each other, so as not to conflict with each other, and to achieve better results Good results.
Just like an army fighting, it can only be won if there is only one commander, and then other generals assist in making suggestions. One order, and each order is in conflict, then the battle will undoubtedly be lost.
For example, for trend traders, there are many tools for judging trends, such as trend lines, moving averages, waves, etc., but you can only choose one tool as the main body of trend measurement, so that you can use a fixed method to determine the trend. A trend has a definition.
And if you use trend lines for a while, moving averages for a while, and waves for a while, it will be difficult for you to have a precise definition of the trend, and without this precise definition, it will be difficult for you to judge the trend, just like These tools are the masters of your trading system. If there is no distinction between primary and secondary, how can your capital team achieve better trading results?
Therefore, after adding all the time in the transaction, at an appropriate time, it is necessary to start subtracting.
So when exactly do you add and when do you subtract?
In the early stage, learning trading knowledge requires continuous addition.
Just entering the market trading, everyone's understanding of the market is relatively superficial. At this time, it is necessary to absorb various theoretical knowledge like a sponge, and to dabble in various factors of building a trading system. Only after understanding most of the technologies and theories can we have a relatively objective judgment.
In the middle term, when appropriate, learn to do subtraction.
And after you have learned various theories and technical indicators, if you gradually become confused about the operation of the market, at this time, you should consider whether to do some subtraction.
That is to say, organize and select what you have learned, take the essence and discard the dross.
How to do it?
First of all, under the various factors of building a trading system, choose a tool (idea or technology) that you think is the most effective, as the main tool in this factor, and exclude those similar tools.
For the factors in the trading system, you can refer to "How to Build a Reliable Trend Trading System?" ".
Then, try to give full play to the advantages of this main tool, and aim at its weaknesses, that is, shortcomings, choose other tools to assist, and finally form a complete trading system, and then continue to improve it.
In the later stage, some additions should be done appropriately.
And when you have almost built a stable trading system, you have to constantly optimize it, keep improving, and make it an extremely sharp "Dragon Slaying Knife", so that you can walk freely in the arena of the financial market .
The road to optimization cannot just be done behind closed doors. At this time, you need to do some addition. You can refer to the strengths of other theories or technologies, or communicate more with others, and occasionally get some inspiration. But at this time, your The trading system has been relatively fixed, and when referring to other people's opinions, it is more selective and pertinent.
Addition and subtraction in trading are sometimes mixed with each other. When you first enter the market and feel confused, there is no doubt that you must continue to add at this time; and when you learn various theories and technical indicators Finally, when you feel confused again, you can try to do some subtraction, maybe there will be unexpected gains; and when you are no longer confused, don’t forget to continue to do some addition, because the trading road has no end, the market is Evolve, and you have to evolve.
—Final Words— _
One very important point is that building a trading system is most afraid of overthrowing and starting over. It took several years to build a trading system, but the effect was not good. In the end, it was found that the direction was wrong and everything started again. Wasted a lot of time and money.
However, the choice of direction is precisely the worst thing to do, because everyone's knowledge, talent, perception, circumstances, etc. are different, which will lead to different perceptions of the market, and naturally the choice of trading ideas will be different.
Therefore, there is no way to do this. You can only look at your own fortune and try to learn from people you know who have achieved success in trading; if there is no such learning opportunity around you, it is best to learn from those recognized predecessors Yes, such as some more classic books.
Fortunately, all roads lead to Rome, and there is more than one way to make money, and no matter which method it is, it must include all the indispensable factors in the trading system. Therefore, as long as you keep working hard, I believe that the door to wealth will be you open!
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