"Your hands" are the biggest risk

K Line Jam
tiramisu

A real trader only cares about two things:

1. After I buy, what should I do if the trend proves that I am right?

2. What should I do if the trend proves that I am wrong after I buy?
After thinking about these two answers (strategies), you can place an order.
No one can accurately predict the future market. The only thing you can use is the rules - consistent trading rules, which allow you to stand on the side of the big numbers in this probability game.
Profit is not obtained by your winning rate in predicting the market, but by "when you make a mistake, you lose as little as possible, and when you do it right, you make as much as possible." This is the biggest difference between a practitioner and an analyst.
Your purpose of buying is not to lose money, but to make a profit and make as much profit as possible:

When the trend is favorable to you, you must be greedy and let the profits run;
when the trend is unfavorable to you, stop fantasizing and cut losses.
When will the direction of the market be clear? It is not clear at any time! The market at any time is gambled with your own chips. Although many friends never think that they are betting, they just think that the probability is high and it is not a bet.

In fact, no one knows what will happen tomorrow. Trading is a bet, betting on uncertain profits with a certain price, but staying away when fatal risks come; when the risks are controllable, the future is worth betting on.
Most of my trading is "plan my trade, trade my plan": after the market, I will look at the trend to determine how to do it according to the rules, and what I do during the trading time is just to trade according to the rules.

I never think that the specific point of buying plays a big role in the transaction. Only those who pursue meager profit can pursue the specific buying point, and those who do not pursue the meager profit band pay too much attention to the specific buying point, and the gain will outweigh the loss, and more opportunities and profits will be lost.
The specific point of buying will not be the focus of my trading. I look at the trend of the day and before after the market every day, judge a direction based on experience, find a price zone that I think is suitable, and then buy and hold.
I have never spent a lot of energy studying how the price will stop at a few cents, but many friends have emphasized how important the specific buying point is in their transactions.
If the precise buying point occupies a very critical position in your trading, if you are not operating in the pursuit of low-profit swings, it can only mean that you don’t know what a trading strategy is at all, and you don’t even understand how the market trend is generated. I don't even know what you are trying to do.
I never expect to buy at the lowest point and sell at the highest point.
One of the key reasons why many people are unable to increase their funds as a whole is that they cannot bear the retracement of floating profits. In fact, floating profits are not your profits at all, and no one wants profits to retrace.
Some profits will be lost due to the retracement, but greater profits will also be grasped due to the retracement. This is an indispensable part of the trend, and I am very used to it in my trading.
The amount of loss can be controlled by oneself, and the profit needs the support of the market.
My buying or selling is not what I take for granted, but let the actual trend decide whether to buy or sell. At any time, I will not let myself fall into a passive position, and I will never pursue a perfect transaction.
No matter what rules you use as a trading model, you must consider one thing, that is, whether this rule strategy can achieve the growth of capital rights and interests in a relatively long period of time, instead of taking a few isolated trading days or a certain time The contingency of trading is used as the basis for your trading.
The so-called "consistency" means that you follow your own rules at all times: the market and the outside world will not interfere with you, unless there is a large loss within the rules. Not all market conditions should be profitable under your trading rules. You must understand and accept this.
At any time, as long as you don't let the capital draw back sharply, and at the same time maintain profitability within your own rhythm, even if it is very slow, the market will reward you sooner or later.
A mature trader does not think that there is a unique secret to trading.
There were many friends before and after who wanted to make some profits through trading. I told her all my trading strategies, and she knew where I bought and bought there. My trading was completely transparent to her, but for a while Over time, our trading results have been very different.
Because she is always tempted to lose herself in the ubiquitous market, and can’t bear the fluctuations. She either buys early because she is worried that she won’t be able to buy it, or she doesn’t buy it because she wants a lower price. Selling too late because of too many fantasies.
This is the deal, don't always think that the people who make money have some unique secrets to count money behind closed doors.
The volatility comes from the market, but the risk does not come from the market, but from your transaction, from whether you control the risk or not.
No matter how low the risk is in the market, if the risk is not controlled, the risk will be infinitely magnified. No matter how high the risk is in the market, if you know how to control the risk, the risk will be greatly reduced.
If you can't control the market and can't control your own transactions, there is no greater risk than your hands.

Copyright reserved to the author

Last updated: 09/04/2023 03:25

683 Upvotes
Comment
Add
Original
Related questions
About Us User AgreementPrivacy PolicyRisk DisclosurePartner Program AgreementCommunity Guidelines Help Center Feedback
App Store Android

Risk Disclosure

Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Any opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. Opinions, market data, recommendations or any other content is subject to change at any time without notice. Trading.live shall not be liable for any loss or damage which may arise directly or indirectly from use of or reliance on such information.

© 2024 Tradinglive Limited. All Rights Reserved.