TradingTips trading tips, focusing on foreign exchange analysis and strategy, on this road, let us move forward together.
Trading has never been a simple matter. The seemingly simple click of the mouse to buy up and down requires a huge knowledge system to support it.
There are many traders, but few master traders.
The methods of masters who make stable profits are different, but they are all extremely self-disciplined. Strictly follow your own trading rules to trade and execute, win or lose, and keep making profits in this market.
We all want to achieve stable profitability, so how can we do it? Old A made a brief review, hoping to inspire you.
01 - Excellent basic skills The foundation of profit
There is no doubt that if you want to make a profit through trading, basic skills come first. If you don’t even know the K-line, the shape, and the trend can’t be judged clearly, wanting to make a profit is tantamount to blindness.
K-line patterns may seem cumbersome, but they can be classified and summarized. They can be roughly divided into two categories: long/short continuation patterns and top/bottom reversal patterns. These basic knowledge can be learned through books, here are some basic books recommended.
①: "Japanese Candle Chart Technology"
②: "Technical Analysis of Futures Market"
③: "Turtle Trading Rules"
④: "Stock Market Barometer"
⑤: "Memoirs of a Stock Operator"
These books will systematically improve your basic skills and improve your Your understanding of the market. Even if you have already read these books, you might as well take them out and read them again.
If you learn from time to time, you will gain something new.
02- Scientific position is the key to profit
Because of leverage, foreign exchange trading can be small and big, but leverage is a double-edged sword. It can bring you rich returns if you use it well. pose great danger.
Proper use of leverage is very important.
For 10,000 US dollars, many people often do it with 1 lot or 3 lots. I think it is not impossible, but for novices in trading, once the loss is faced, the risk is huge. 5 points is a loss of US$500, which is a loss of 5% of the principal. How many 5% of US$10,000 can be lost? 20 times, yes, you only have 20 trading opportunities. What's more, it's a 3-hand, 5-hand transaction. The difficulty can be imagined.
Normally speaking, it is more reasonable to use a position of about 2%. Even if the transaction is wrong, the loss will not be large, and it will not affect your next transaction. If you trade 3 hands and 5 hands and your loss principal reaches half, doing this again will usually accelerate your loss of funds.
When you gaze into the abyss, the abyss gazes into you.
03- Control the amount of each loss.
Many traders make big losses and small profits. The fundamental reason is that they have not been able to control the loss amount of each transaction in advance. Anti-order or impulsive trading with heavy positions are the accomplices of big losses.
If you want long-term and sustainable profits, you must cherish every penny in your account. The amount of loss for each transaction should also be carefully calculated. Is the acceptable loss for each transaction 1%, 2%, or 5%? Make a plan yourself. With this expectation, when you place an order, you can adjust the number of hands appropriately according to the size of the stop loss space. Whenever, consistently adhere to position control, this is risk control.
At this time, no matter whether the market is running according to your expectations or not, you have no pressure, because you know very well how much you will lose if you stop the loss.
04 - Reasonable profit and loss ratio
Before placing an order, you have already analyzed and judged the market. If the stop loss is 100, and the expected target is 100, you can still do it. If the target is 50, then it is not worth doing. Take a risk of 100 US dollars to gamble A $50 profit, no matter how tempting it is, cannot be done.
A reasonable profit-loss ratio is basically more than 1:2, and the worst is 1:1. If the pressure is at some extreme points, it can even be higher. At this time, it is worth starting with a good profit-loss ratio list .
05- Normal mentality, no waves in the heart
, do a good job of risk control, and place an order, you already know your loss amount and profit-loss ratio. If the trade is correct, it is still possible to lose money, because it faces another more important topic: trading psychology.
A big guy once said that a transaction is 10% luck + 20% technology + 70% mentality. Although it is not possible to get the quotations of which big guy it is, I believe that you who are doing transactions must have experienced the importance of mentality. It was obviously an excellent point, but it was sloppy out of the game, and it was a pity in the end.
At this time, we only need to do one thing, which is to maintain a normal state of mind and execute our own strategy; you have made a judgment on the trend, you have done a good job of risk control, and you have a clear loss limit, so what else is there to worry about?
Don't change orders overnight, let the market test your judgment.
If things go on like this, as the market goes up and down, you will have no worries. Because you know in your heart that everything is under control, and it is absolutely impossible to lose money.
After not losing money, there are only two endings. Either make a profit, or neither make nor lose. This goes back to a philosophical dialectic. If you don’t lose money, won’t you only make money in the long run?
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