What are the aspects of an excellent transaction?

A few days ago we talked about "what aspects should be considered for a successful transaction" in the official account? Some friends and students chatted with me privately and sent me a lot of influencing factors. Let me talk about my feelings and divide it into four parts to start research.

1 Self-positioning

Friends who do trading come from all walks of life, just like Wall Street practitioners are not all from the financial department. Many people think that the threshold for doing finance is relatively high, but it is actually the opposite of what you think.

Regarding your own positioning, it is actually very simple. It is undoubtedly full-time trading and part-time trading. You must make a very clear positioning before making a transaction, because this involves the length of your trading cycle, whether it is short-term trading, mid-term or long-term. There is also a question about whether your mentality will be affected by your main job if you currently have an open position order when you are doing your main job. Therefore, after summarizing the opinions of the majority of traders, the consensus is that if you want to do a good job in trading, you must regard trading as your main job, or when you do trading part-time, your time period should be enlarged and you should make long-term orders. This is the mentality has less impact.

2Risk

We do transactions in fact to do a risk control job. Risks in foreign exchange are divided into several categories: platform risk, technology risk, and market risk.

Platform risk : There are many black foreign exchange platforms in the market, ranging from slipping and suffering customer losses, to running away directly. As a result, you cannot withdraw funds. Regarding the platform, I suggest that you choose some old platforms with large-scale formal supervision or platforms with backgrounds in banks and brokerages.

Technical risk : what do you think of your trading ability? Can it achieve sustainable profitability? Does every order of yours have a stop loss? When it comes to technology, it is a cliché. Many traders think that their transactions are seamless, but after a period of time, the transactions are stable losses. Insufficient technology will bring you mental instability and account liquidation, so before you make every transaction, you must first consider your risk, whether the risk of this order is acceptable!

Market risk : The market risk mentioned here mainly refers to some unexpected events, such as the 15-year Swiss franc black swan or the recent bombing of a Saudi oil plant. These are data events that traders cannot foresee, which may cause your stop loss to be slipped, not to mention that if you do not set a stop loss, you can only sell your position.

3 What kind of market trading to do?

After you have been familiar with trading for a period of time, you will face a problem, that is, to establish a trading system. At this time, you have to consider whether you are going to do trend trading or swing trading. Because the trading models established by these two markets are completely different. For example, if you have a moving average system, then the market that suits you is the trend market, and the moving average is not applicable in the volatile market! You need to consider yourself suitable for that kind of market! Then build your own trading system according to the characteristics of the market.

4 Selection of trading system

To establish your own trading system, you need to have clear entry point, exit point, stop loss position, take profit position, position ratio, fund management, profit-loss ratio, etc. The first thing to do before trading is Regarding the operation of risk control, because the essence of our trading is to do risk control, the above-mentioned clear entry or exit, etc., need to be summarized in a large number of historical reviews to obtain a consistent signal.

Regularly sort out the transaction records of the recent market, count the number of consecutive loss orders and the average loss points during this period, so that you can get a maximum retracement value, through which you can reduce the position to reduce the risk of your account .

What is a good deal? I think it is composed of your execution ability, your thinking ability, your reflection and summary ability and your persistence in the transaction. Only in this way will your account equity curve rise in a straight line.