There are a lot of books and a lot of training, and they talk about unique skills when they come up. For retail investors, the first must-know lesson in trading is to plan transactions from life.
From the beginning of entering the market, many people stand on the side of failure. Sun Tzu's Art of War says that the winner wins first and then seeks battle. How can you win first? That is, when you first enter the battlefield, you stand above the high probability. This high probability is not based on luck, but on strategic and tactical planning.
In the first sentence of the first chapter of Sun Tzu, the major events of the country, the place of life and death, and the way of survival must be observed. The whole chapter after that is about strategic preparations. For those who want to learn how to fight, the focus must be on how to arrange troops to fight, but Sun Tzu's Art of War puts things other than fighting in the first place. Why? When Sun Tzu fights, he focuses on building momentum. Those who are good fighters have dangerous momentum and short stature.
The same is true for transactions, the things outside the transaction are the most important. Life is a strategy, trading techniques are tactics. Many people pursue tactics, but they don't know that just strategic planning in place can greatly improve the tactical effect. You, including me at the beginning, came to the market at the beginning, and never realized this problem. The thinking has always revolved around those techniques, what tricks are good, what indicators have high hits, how to analyze high hits, and study these tactics. Turning around, I thought I had realized the Tao.
Many people have been working for many years, but they have not been able to make stable profits. Most people think that my technology is not good enough, my ability is not good enough, and my trading level is not good enough. In fact, it is not, but you have chosen a very narrow road. It is no exaggeration to say that if you can figure out the difficulty of this road, you will be a trading master who understands the changes in the world and can become a sect in technology. . Most of the analysis of stock reviews, live broadcast calls, and various successful cases are all trying to induce novices to take the narrowest path.
Most of the retail investors come to the market without a master or institutional professional training. They use their own money and even overdraw their reputation to explore. We chose the hell mode from the beginning and stood on the small probability In fact, this determines the future trading career, and the road is very bumpy.
Life affects trading in three ways.
First of all, life affects the trading mentality , which should be easy for everyone to understand.
If you live poorly and have a lot of debt, you value every dollar you have in the market.
If you have a rich life, a lot of assets, and a lot of passive income, then your money in the market will be easy to gain and lose.
How life is, directly affects the gains and losses in trading.
Zhuangzi once said that if tiles are used as bets, the bettors will be able to do their job with ease; Mess up, mess around. Gamblers use the same method but have different results because they value external things and cherish them. Those who value external things must be clumsy in their hearts.
"Those who use tiles to instill cleverness, those who use hooks to instill fear, and those who use gold to instill faintness. The ingenuity is the same, but if you are reserved, you pay attention to the outside. Those who pay attention to the outside are clumsy inward." I hope everyone can understand this sentence Copy it down and taste it often.
Second, life affects trading methods.
The trading method consists of two aspects, one is analysis and the other is operation. If your desire is strong, it will cause distortion in analysis and distortion in operation.
Most people, when they first came to the market, came with strong desires, and strong desires brought about a strong sense of gain and loss. A strong sense of gain and loss will make the pursuit of transactions faster and more, so frequent transactions, like short-term, like heavy positions, and look down on losses. You know these trading problems are problems, but most people think that there is a problem with their mentality. The root of mentality problems lies in desire, and the root of desire is because you are dissatisfied with life. There is a gap between your reality and what you want, and you want to bridge that gap through trading. If you remove the dissatisfaction in life, then you will reduce this desire in trading. It is easy to get the mentality that gains and losses don't matter.
Third, life affects your trading goals.
The level of trading technology is inversely proportional to the standard of living. The standard of living determines your trading goals. The level of your trading goals is directly proportional to the difficulty of finding a trading method. If the goal is high, it will increase several times or dozens of times a year. It is difficult to find a method and requires a high level of technology; if the goal is low, it will earn 20% or 50% a year. I believe that people with several years of trading experience have a way to make money, but they don't bother to use it, because most people who lose money have unhappy lives.
Goals are linked to your life. A person who lives contentedly has a very low goal in the market, and if he earns 20%, he is also satisfied. A person who lives in poverty and is in debt, even if he earns 100%, will not be satisfied.
Why is it said that trading is to achieve a personalized balance between the heart and the method, because the heart has a strong desire, and the efficiency of the profit method is high or low. Desires are low with low-efficiency methods, and desires are high with high-efficiency methods. These two combinations belong to those who find their own way. But most of them are high desires with low efficiency methods, so everyone has been trading for many years and cannot be stable. After going through torture, I finally stopped tossing and my desires decreased. At this time, I realized that I had already found a way, and there were many ways.
You see, I often lament about my life. This is my current situation. There are old and young, low wages and weak defense. Under such circumstances, my risk control in trading is extremely strict and conservative. Originally, this kind of strict risk control should only be available to large funds, but it is not suitable for small funds like mine. It's not the best state for trading, but only with such strict risk control can my heart be at ease, so my efficiency in making money is very low. In fact, I think I have the ability to make a lot of money at present, but life has tied the hands and feet of trading. To solve this problem, there are only two ways to start, one is to increase income, and the other is to find a more efficient method, but this is more life-threatening and difficult.
Many people admire those analysts and think that their forecasting ability is amazing, and you think their trading records must be very good. But in fact, trading and analysis are not the same thing. Analysis only needs judgment. But in actual combat, risk control must be done well, and mentality is the biggest source of risk.
To restrain your inner demons, the first thing to do is to plan transactions in your life. Transactions should be a icing on the cake in your life, not a blessing in disguise. If you do this, your chances of success will increase.
The second thing to do is to reduce desires and be pure-minded. The law of life is also for the sake of asceticism.
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