The trading market is like the unpredictable weather in the deep sea. The only difference lies in how traders control the risks in the market. The decision rests in the hands of each trader. Every transaction is decided by yourself, and every result must be taken care of by yourself. Chaos exists in the seemingly chaotic market! So why do you keep losing money in your trades? Today I will elaborate a few points to analyze the reasons why most people lose money at present.
1. The result of making mistakes is not as direct as the cause.
The reason for the vast majority of traders' losses lies in the incompleteness of their own trading systems. Speaking of this, many people may also quibble for themselves to cover up his flawed trading model. There are a few points about the incompleteness of the system:
1. Type of transaction:
Everything is difficult at the beginning. The first thing to do before trading is to determine your trading method: trend trading or swing trading? Long-term trading or intraday high-frequency trading? To give the simplest example: If you are a trend trader, can you determine your main trading cycle and how do you judge the direction of the current market?
2. Identify whether you are currently in the trend or against the trend?
If the order is in the trend, there is a high probability that you will make a profit, so we will not discuss the market trend because there is a high probability that you will not lose money if you follow the trend. If you enter the market and find that the order is in a contrarian market or you want to make a contrarian order, when should you exit the market and when should you end your contrarian order? These should be fully considered before the transaction.
3. Selection of trading signals
There are many options for trading signals. This mainly needs to be obtained through continuous testing and optimization based on your own trading system. Take the moving average as a simple example: when the k-line steps back on the moving average of XXX parameters When we will enter or exit! When several moving averages cross, we have a higher winning rate of entering or exiting the market. These all need to be constantly tested to find out.
Regarding some of the above questions, I believe that many people just understand the ways I should find problems, but they don't know how to solve them. Then let me tell you that the easiest way to solve it is to constantly review and summarize, list all the problems that frequently occur in the transaction, and then compare and analyze them one by one, and then continue to review and optimize. Only in this way will you find the problems in the system Loopholes then make up for deficiencies!
2. Strict execution is the only way to victory.
Every trading model will go through the stages of loss---reducing loss---little profit---large loss---stable profit. What must be done in this process is the consistency of transactions. When each of your orders is strictly executed in one way, you will quickly discover the deficiencies in your system. Then continuously optimize these shortcomings so as to improve the profitability of the transaction. Let’s imagine that there is uncertainty in the trading itself. If your trading signals are relatively random, then the trading results must be random, and if there is a problem, you can’t find the problem at all. Only in the end will you find that your trading is a mess. You can refer to some mature traders because most of them have one thing in common, that is, the rigor and consistency of operations.
3. Manage your hands well, control your heart well, and fear risks
1. Frequent trading: We discussed before whether frequent trading is right or wrong! There is no right or wrong in the trading market, everything is relative. But what I want to say is that frequent trading is very unfriendly to novices, because the trading model of junior traders is chaotic and coupled with frequent trading, the result can be imagined. You can try to set a goal for your trading model, stop trading after X consecutive losses, or stop trading if there are X retracement orders on the same day.
2. The result of frequent trading is likely to be continuous losses, which will directly affect the mentality of traders. Everyone will have different thoughts: "Am I suitable for trading? I must make back the money I lost!..." If you have these thoughts, don't continue trading! ! ! After a period of rest, you should reorganize your thinking and start trading! ! Another better way to strengthen your mentality is to review the game! In the review, not only will you improve your trading system, but you will also hone your mentality. Don't believe the words of some so-called "big bosses or teachers" that "you will strengthen your mentality during losses." These are irresponsible words.
3. Do your own trading well, don't hear rumors that XXX will rise or fall sharply. Some things in the fundamentals are very likely to be just some basic things, and it is difficult to affect the foregone conclusion! Be sure to put risk first in every transaction! ! !
Why do many people still lose money? Most of the losing trades I have encountered are not serious enough to trade and not afraid enough of market risks. I hope that friends in the trading market can go on for a long time in the future and become the birthday stars in the trading market.
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