This problem is not only a direction that beginners want to explore, but also a problem that most experienced traders want to overcome! When I saw this question, I let out a long sigh. This is a question similar to Tang Seng’s journey to the west to learn Buddhist scriptures. First of all, whether I am as lucky as Tang Seng is another question. In terms of Tang Seng’s own qualities: persistence, firmness, bravery... , I believe that few people in the market have it!
Closer to home...
There are several core practical problems in this problem: the first is the lack of professionalism, which can also be said to be lack of market experience or basic financial literacy; the second is long-term survival. It can be said that any industry that can survive for a long time is a professional The third is the foreign exchange market, which is another high-risk financial derivatives market! To sum up: Unprofessionals or those who lack financial literacy want to do what professionals do in a high-risk market. The difficulty, risks and costs are a great test for anyone!
So, with regard to the two questions derived from this question, I would like to talk about my own experience and feelings!
The first question: the conditions to survive in the market?
First of all, correct your mentality!
In addition to correctly understanding the definition of the market itself and being familiar with the current industry status quo, you have to bring your balanced mentality back to reality. Trading is not a tool for huge profits, at least for the vast majority of people; The very small number of people other than the majority! Once the mentality is not good, it often shows that you are too self-centered in trading, and even give yourself unrealistic profit expectations.
Second, know yourself!
Fully understand your own advantages and disadvantages, and don't follow the trend; too many myths about creating wealth in the market may distort your cognition and distort your own positioning; Follow up and observe the market for a long time, and then use your own understanding to find a market that belongs to you and is suitable for your operation. The so-called knowing yourself and knowing the enemy...you can only fully understand that you are combining your own understanding of the market, and find trading opportunities that you can interpret and identify! Everything else does not belong to you!
Finally, capital!
The financial market, especially financial derivatives with high leverage, is not so much a small-scale big deal, but a means designed by the game rule makers themselves. The small ones are very few dealers at the top of the game, and the big ones It's all the retail investors on the other side of the game! If you don't have a rigorous, scientific, and planned trading system, don't use leverage lightly! Dreaming of unrealistic fortune-telling dreams! There may be many friends who think that as long as they work hard, they can become people like William, Peter Lynch, Rogers, etc., and even comfort themselves that even if they have one percent or one thousandth of their achievements, It’s enough for me to be proud and proud of my ancestors, and then start the journey with thousands of dollars or tens of thousands of dollars; in the end, most of the scripts are, if you invest a few thousand dollars, there will be thousands of dollars in succession. bet! Because of the lack of correct positioning and expectations that do not conform to the facts and common sense, the originally rational transaction fell into a gambling ending!
Regarding the third point of capital in the conditions of market survival, I prefer to use an example to assume:
Recently, many people will ask or be asked, are you doing well in trading? How about the income? And so on similar questions: the strange thing is that people who lose money can answer without hesitation, the loss is serious or even close to liquidation, but people who make money are hard to say, as if the profit does not exceed 20% or 30%, they are embarrassed to say Come out, preferably 50% or even double; this is the human problem, hypocrisy and damn face that most people have! If a person says that the monthly income is 20 to 30% or higher, or even only talks about the amount of income but never the risk, then you can take it all as a joke after dinner! Anyone with a bit of common sense and a foundation in mathematics knows that it is not an exaggeration to say that this sentence is a scam or a trick! Because this sentence is calculated according to a normal mathematical formula, no matter whether this person is knowledgeable or capable, it is estimated that this person has no knowledge in ancient or modern times!
To sum up: the most basic conditions for surviving in the market are personally summarized as: correct mentality , understand yourself and capital !
Regarding the second question derived from "how can beginners survive in the market for a long time?": the way to prolong their survival in the market?
Why did this problem arise? It is a luxury to survive in this market for a long time. Regardless of whether you are a veteran, a beginner will eventually become a veteran. This problem still needs to be faced! For this question, I also summed up two points!
The first is: properly arrange real daily life;
Trading does not exist alone, no one can absolutely leave their circle of life alone to fully immerse themselves in the trading market, whether it is a person with a family or a grassroots without a family, if it is a grassroots without a family, they still have to eat three meals a day Thinking about the problem, it is even more unimaginable if there is a family with seniors and juniors, unless there is also a main business! If you don’t have a main business and you have a family at the same time, then stop here, because no industry can achieve short-term results, especially financial derivatives market transactions! What I want to say here is that the way to prolong your survival in the market is to arrange everything reasonably in your real life, especially food and clothing, work, your daily work and rest, and your relationship with your family! Because whether it is trivial matters or major events in life, it will subtly affect the transaction every day. Whether the transaction goes smoothly or not will also affect personal emotions and life! Therefore, it is a very important issue to make reasonable arrangements for your own life and transactions! Especially for beginners, it is more necessary to regard trading as a grade-examination subject, and set the goals to be achieved for each level. Of course, there must be time for learning, so that life, work and learning trading can coexist harmoniously!
Second: Make a daily plan for learning to trade;
This can be divided into two steps, the first is the learning part: because at present, there is no right or wrong in the way of trading and learning, and the only way is to find various resources on the Internet and learn various methods and techniques, because This stage is unavoidable. There is no shortcut to trading. You can learn everything. Only the more you experience, the greater the effect and the more stable your mentality. The learning process will always be accompanied by trading; the second is daily practice: If beginners want to greatly reduce their early tuition fees, in addition to using the simulated trading to familiarize themselves with the fluctuations of the trading market and trading products and the functions of the software, it is best not to use leverage in the real trading stage, prohibit cross-product trading, and prohibit stacking positions and increasing positions ; Every time a transaction is over, look for a chance to try again! There are only a lot of real trading operations, and what you have accumulated is not only the sense of trading, but also the training of market risk perception and mentality! In addition, it is to arrange a time period for firm trading every day, so that life, work and learning trading have their own independent time and space! Just like there are three meals a day for three meals a day, and there is time for sleeping, so learning to trade also requires time to learn trading!
Finally, it is added to emphasize : the most important point for beginners is to prolong the way of surviving in the market. If you do not fully understand the market and have not accumulated a certain amount of real experience, remember not to increase leverage and increase positions. Cross-variety is also allowed... Once curiosity Crossing the red line, all plans and preparations will be completely overturned in a short time, and you will be eliminated even before you fully understand the market risks or get started!
Finally: I wish all friends who are struggling in the trading business smooth sailing and realize their goals and ideals as soon as possible!
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