How to be flexible when trading?

thank you

It can be seen that the subject is a person who really loves trading.

First of all, let me talk about the problems encountered by the subject. In fact, the most important point is that you have been doing transactions with a short-term mentality of getting rich, and your demons have been controlling you. Maybe you don’t really realize this. One point, it is impossible to do a good deal in this way. The most direct way is to get rid of this "obsession" first.

If you really love trading, you must understand that trading is a career for one person, so you should plan the business of "trading" strategically. How to plan it? It just so happened that I wrote an article " Stop loss is the bait you use to fish in the financial market ", you can refer to it.

Then let’s talk about the subject’s question, how can we move freely when trading?

In fact, this is a very grand topic, and it is not very simple to do it, but you can refer to your personal point of view:

1. Complete system.

First of all, it is natural to have a stable trading system, no matter whether it is currently positive or not. This system should include technology, risk control, and fund management. When you can enter the market, how much to enter, and how much to stop loss; when to increase your position, how much to increase, when to reduce your position, how much to reduce your position; Form a complete trading principle. Then review the market frequently, sum up experience, maximize strengths and avoid weaknesses, until the system is built into a system with positive expectations.

2. High self-discipline.

Strictly implement the trading principles. Trading is like leading troops to fight. If you relax a little, you may be doomed. Therefore, you must be highly self-disciplined and abide by trading discipline at all times. This is not just a simple talk, but it is related to the trading fate of every trader; the key to truly separating excellent traders from ordinary traders is self-discipline.

3. Persist in cultivating the mind.

When you have technology, mentality becomes very important. When you have time, you can read more books on philosophy, such as "Tao Te Ching", "Book of Changes" and so on. The most important thing in a person's life is to "overcome self". No matter what industry you are in, it is especially important in trading. When your heart is peaceful and tolerant, you will naturally have a stable mentality.

4. Keep learning.

The market will continue to evolve, so even if we have a stable trading system, we must continue to learn, and then continue to optimize the system to adapt to the continuous evolution of the market.

If you achieve the above four points, you will be able to move freely, but this is a long-term process, and it is impossible to achieve it in three or five days. The question is, are you really ready?

Thanks to Mi Xiaoquan, a couple for a lifetime, Eric pan for the invitation. This is the first time three people invited me to the same question. I saw the title, I saw the description, and I really have a lot to say.

How to achieve the appearance of trading freely, I will definitely talk about this later, let's take a look at the problems in your description first. I have been in contact with foreign exchange for 13 years, and it has been 7 years now. I must first call you a senior, because you have been trading longer than me. Let’s take a look at your status. The current debt is 140,000, the monthly income is 8,000, and the emotional state is female. My friend left because of this. This is really not a good look, but I believe that many people are also like this now, and it may be worse than this. I have also experienced this experience myself. I don’t remember the tens of thousands, because I always tear down the east wall to make up for the west wall, tossing back and forth, and my monthly income is more than 5,000, which is not as much as yours.

Looking at your own trading situation, there is a big problem. Exploding losses, making profits for 15 consecutive days and then liquidating positions, this is enough to prove two points. Carry the bill. Second, you have no trading rules, and winning for 15 consecutive days is nothing in the trading field, but you think it is worth mentioning, obviously your level of trading awareness is too low. Sorry for being blunt.

Let us solve the core problem you raised, how to make the transaction reach a state of ease. We have to figure out one thing first, it’s not that you can do a good deal with a good mentality, but that your mentality is good only when your trading skills are high enough to a certain level. Many people get this order wrong, and their trading skills are poor Run to practice mentality, you will not blush until you practice, and your heart will not blush. Without trading skills, it is a loss.

During the trading process, we will have various emotions such as excitement, frustration, fear, anticipation, etc., and we will even be disturbed by these emotions so that we cannot sleep peacefully. If a trader is currently like this, he must be losing money, even if he is making money in the short term. It's useless, and it must be a loss in the end. Many people think that this is a problem of mentality. Is it true? why are you excited Because you made a lot of money, but you don't know that it's just your luck and bet right once. why are you depressed Because it is obvious that the rising market has fallen, and it is obvious that the market that is bound to fall has risen. why are you afraid Because you have a heavy position and no stop loss, you are afraid that a big fluctuation in the market will take you away. Why are you looking forward to it? It is very painful for him that many people stop trading on weekends, because he wants to keep betting.

These have nothing to do with mentality at all. Entry rules, exit rules, fund management, product selection, and cycle selection are all called trading techniques.

Let me tell a story of my own. This story has nothing to do with trading. It is an experience in my school days. I failed in the college entrance examination in the first year, and I was not admitted to a key university by more than ten points. In fact, the main reason is that my English is very poor, and the score of the college entrance examination did not even reach the pass. I refused to admit defeat since I was a child, and I was determined not to go to a key university because I told my family that I couldn't get into a key university. I didn't even go to get the two university notices that came to me.

At that time, many people advised me. The reason they advised me was not to repeat the study because English is not good enough. Because English is a language subject, it needs to be accumulated. Just go to college, or it is very likely to waste a year. I refused to accept it, and there may have been reasons why I didn't like going to that school at the time, so I still decided to repeat it. Time passed quickly, and it was November in a blink of an eye. During the three or four months of re-study, I tried my best to do English questions every day, asking teachers and classmates, but my English was still the same, with little improvement, and I was on the verge of passing. . Our exam is a national second paper, with a full score of 150 in English, and I struggled to even score 90.

I think I'm still lucky. At that time, I had a friend who was very good at studying, especially English. He also repeated the study, but the reason he repeated it was because he wanted to rely on a good school such as Tsinghua University and Peking University. We both like playing basketball and we have a good relationship with him. I asked him Ah, is it possible to improve English in the short term? I don’t ask for too much. It’s enough if I can score 100 to 110 points. Liang, is it really possible? It was more than November at that time, and there were still about seven months before the college entrance examination. Did I say seven months is enough? Increase by twenty points? He said seriously, three or four is enough.

My God, I just asked why the method is so amazing. He said that you have to do two things. The first thing is to stop doing English questions and memorize all the words in the vocabulary list at the back of the textbook for the third year of high school. Know both common and uncommon, and then find a hundred short passages in the English papers that are often made, without reading, pick out the words that are not in the textbook, and then use a dictionary to memorize them, spend about two hours a day , it takes almost two months. The second thing is to find out all the multiple-choice questions in the review questions. There are 3,000 different types of questions. The single-choice is a grammar test. The 3,000 grammar is almost enough, enough for single-choice and cloze. , This is half an hour a day, almost a month, and if you use it for another month to consolidate, it should be no problem to score 112 points in the exam. But the biggest premise of this is that you have to do this every day, and you can't delay anything. Even if you can only do one thing a day, it must be this thing.

I am convinced, because I have no other way, I don’t describe the middle process in detail, and I never stop. Finally, in the mock exam in March and April of the second year, the English paper was placed in front of me like primary school Chinese. I'm so nervous about English. Later, I couldn’t believe it in the English mock test, because English was the last test. During the mock test, I played basketball during the lunch break of the last subject, because English in the afternoon was not stressful for me. I also memorized a few composition models to deal with English writing.

My English score in the college entrance examination was 131. Get admitted to a key university as you wish.

I think this is the freedom of retraction. But have I exercised my mentality during this process? I don’t know him even if I put a word in front of me. No matter how good my mentality is, can I score?

So trading is the same. What I have always advocated is to establish my own trading system. Many people feel that this is old-fashioned. Trading should be handled flexibly? Should transactions evolve with the times? Trading has always been as old as mountains, there is nothing new.

What are the advantages of building a trading system? An excellent trading system includes entry rules, exit rules, and the most basic three elements of money management. Once these links are established, will they still be disturbed by emotions? Whether you make money or lose money, it’s all in the system. As long as the system is positively expected, I will definitely make money relying on the power of time. I don’t care about the profits and losses in front of me. I will enter the market when the rules are met. If you lose money, it means that you are wrong. If you make profits according to the rules, you will keep profits. Every transaction is as natural as eating and drinking.

Only in this way can you achieve a state of retractability and build a system. Even if it is wrong at the beginning, don’t rush to improve and optimize a little bit. This process is the process of improving cognition, and finally forms a positive expected return system. All problems were solved.

Are you satisfied with this answer?

After reading this question, everyone is like-minded.

Let me tell you first that I was also in the same way about two years ago, and I was doing the same thing when I was doing trading. Suddenly, my position was liquidated one day, but I took a look and the reason was basically because I insisted on myself. It’s time to stop the loss, remove the stop loss and see that the price has been reversed and feel that it is almost the same, so I start to cover the position. Once I filled up the position twice, and finally moved a little bit, and then the account was blown out. But at that time, I felt that the market was going to explode my position, so I pulled a lead in the last wave and went back all the way in the middle of the night, I remember. I was really taken aback.

After the above experience, I thought about where I went wrong.

First of all, the first point is that I removed my trading stop loss, which is why I will persist in the dead. If I directly sweep the loss, it is not as simple as a wrong order. The bottom is an obvious upward signal. I can intervene at the starting point of the market, a perfect wave of transactions, but I have no chance.

Secondly, when the market reversed and accelerated, I continued to cover positions, resulting in a final position that was too large, and my ability to resist risks was too weak, so of course I couldn't survive by luck.

Finally, it is on the emotional level. With the subsequent two increase in positions, it is obvious that I am going to die. In fact, I am right, at least in the direction, but the timing and timing of my entry are not right, so this transaction is originally wrong. . But I must go to lose my temper with the market, and the result is of course a slap in the face and a pain in the flesh.

I have been stable for a while, and I have a trading plan and even planABC. I also followed the plan, so I can make my small account decent. If it is my opinion here, it is actually very simple to be able to trade freely, that is, you must have a trading plan and remember to follow the plan.

The situation of the landlord exists for most people!

After all, we can win 100 100%, but we can't afford to lose 100%. Otherwise, it will return to before liberation overnight and be annihilated in ashes.

November is coming to an end, the beginning of winter has already begun, and 2020 will end soon. How about this year's income, there is still one month left, there is a certain amount of loss or gain!

In short, this year as an individual, you need to get through it smoothly. If you get through it, you will have a chance to turn into a dragon later.

I hope the landlord did not increase leverage (loans, credit cards, etc.)​

In short, as an adult, you must be responsible for all your actions. Recently, I have also seen many netizens posting about their helplessness and anxiety. In short, I have a lot of debts this year, especially credit cards and online loans.

There is no limit to the sea of ​​suffering and the end is the shore. This highly leveraged market is not suitable for everyone. What impressed me most was a netizen who had been trading for 10 years. He had lost money for 10 consecutive years. Some time ago, he also announced that he was going to quit temporarily, but recently it seems that he has collected some money and is going to come back and start trading.

If you have lost money continuously for 10 years, it may be that you are really not suitable for trading.

Trading is indeed very attractive, but his reaction is also very lethal, just like practicing Qishangquan. In the end, all seven are injured!

If you can't control the devil in your heart, you will lose everything in the end.

Seeing the landlord's experience reminds me of the scene when I first entered this market. It is vivid in my mind. I can understand your feelings so well!

Recall that I have been a trader enthusiast for 6 years. Strictly speaking, it has been less than 5 years since the real offer started. In this industry, 6 years is not a long time, it can only be regarded as entry-level, and there are still many things to be honed in the future.

I remember that when I was about to graduate from university in 2013, by chance, I came into contact with futures and spot stocks from my roommate at the university, and I heard him say, "The profit is stopped, and the $500 is in hand."

Then asked me to smoke a Huazi! At that time, I didn't know how to smoke, but his Huazi learned how to smoke!

At that time, I still didn’t understand what stop profit meant. Besides, I was a person who loves to watch financial movies. The movie “Eavesdropping” made me think about trading very early.

At the end of 2013, "The Wolf of Wall Street", which was very popular at the time, came out. Watching it, my heart was surging and my heart was surging. I made $12 million in 3 minutes. My God, the speed of making money is invincible.

I was about to graduate and enter the society, so I used my spare time to quietly study various foreign exchange books, study various candlesticks and techniques, and even reached the point of obsession.

Later, when I saw that classmate again, I started to discuss trading with him. I remember he told me that this market is very deep, and it can make you earn 100,000 yuan a night, and it can also make you lose 100,000 yuan. , At that time, because I had never operated a firm offer, I didn't feel much.

He said you can start with simulation. ​

I registered a demo account later, and finally found that I lost the simulated $1,000 in a few strokes. Later, I registered another account, started to simulate again, and repeated several times. Finally, I finally made a demo account of 1,000 US dollars to 5,000 US dollars. At that time, I was very happy and had a sense of accomplishment.

After a long period of simulation, I found that the stability of gold is the best, and the historical laws are easier to explore. So in the future, I will mainly trade gold.

After graduating and going to work, I used part of my wages to trade. I don’t know if it’s because I’m not afraid of tigers, or I’m just a bit embarrassed. I managed to save 700 U.S. dollars in the account, which once allowed me to reach 8,500 U.S. dollars. For a week, I thought, what kind of work do I have to do? I am simply a talent, okay! Then wait for 10,000 US dollars before withdrawing funds, which is not bad for 1,500 US dollars, and the result is... a tragedy!

After reading indicators such as k-line, MACD, KD, BOLL, RSI, etc., I took a heavy position in gold, thinking of making a quick decision and then withdrawing money if I earn another 1,500, and rounded up my account to 10,000 US dollars, rounding up the whole number.

But the fact is: after the heavy position, it keeps falling, and seeing the net value of the account keeps decreasing, my heart is bleeding, wow, because it's not just about money, it's about my unremitting efforts for nearly half a month In exchange for watching the market, staying up late, and hard work, I am afraid of any shrinkage and withdrawal of funds just like my own children.

Seeing the successive stop losses of the orders to build positions in batches, I didn't want to read it at the time, so let him go! In an instant, my mentality collapsed, and my mood was gone. In the end, there was only 147 US dollars left, which was still fresh in my memory, so I raised it directly. I stopped trading for nearly 3 months.

In the past three months, I have been constantly reflecting on and summarizing. Now that I think about it, fortunately, I have just graduated and started to work, so the cost of trial and error is relatively low. Because there are no deposits, low wages, and no channels for leveraged borrowing.

In fact, thinking about doing business is the same as making products, it must be from addition to subtraction. The functional design of the product is the same, and the transaction is the same. Forget most of the technology and keep the core one, it is enough. ​

So trial and error for a person, the sooner the better!

It seems to be November 2014. I re-deposited funds and started trading. I am no longer the same as before, and I seem to be very cautious. Slowly, I strictly follow the daily trading plan in terms of position and fund management. Strictly stop profit and stop loss, and gradually return to a more stable mentality. In 2017, I finally made a small sum of money through gold trading, not much, more than 200,000. I put the money in a very beautiful city in Jiangsu Bought a house and paid a down payment.....

Now it has appreciated by more than 1 million, which is very good. ​

This market is always bloody. Just one mistake can make you annihilated overnight. In fact, this business has been going on for a long time, and it is easy to worry about gains and losses. In the face of human nature, no one is innocent and kind.

Watching trends, setting strategies, and waiting for points... Kung fu is honed over time!

I hope that the host and all traders can survive in this market, and only by living can they have the opportunity to make a lot of money. This is my personal experience.

A good theoretical analyst is not necessarily a good trader, but a good trader must be a good analyst, there is no doubt about it. It has not been tempered by real money for many years, it is just talk on paper.

Cultivate yourself, don't forget peace of mind.

Landlord come on! As long as you survive and awaken yourself, I think you can make a lot of money.

Thank you.

I divide each transaction into three parts: analysis system, risk control system, and trading strategy. At the same time, if I can integrate these three parts together to make advances and retreats orderly, then I can achieve the so-called flexible. Later, I will comment on the shortcomings that I personally think you have.

Analyzing the system is offensive:

Most of the analysis is only for the purpose of attacking. Everyone’s analysis method is different, such as breaking through the triangle, breaking the trend line, etc. These are all for the purpose of attacking. I have been doing it for 5 years, and basically this method is fixed. up. Attacking is for making money and for planning, but it ignores another point. Any analysis method has flaws, that is, it will not be 100% successful.

Risk control is to supervise trading behavior:

The risk is defense. The left hand bows and arrows and the right shield, wearing armor and headgear. This is the basic equipment of the army. The strategist is attacking, and the general and soldiers are attacking. Attacking is bound to cause casualties. This part is ignored by many people, and it is also a lot of transactions. Those who can turn over their positions can also explode their positions in an instant. The main reason is that the defense is not in place, and the main reason is that the position control is unreasonable. Set aside a reserve fund for losses. In the process of making profits, always consider the safety cushion of funds to prevent excessive risks. For example, for each transaction, 90% of the funds must be left without loss. The average risk of each transaction is mostly for me, and the disadvantage of the maximum risk is to develop a habit. The professionalism here is no less than that of the analysis system. Starting with the loss reserve, you consider the number of losses, and the magnitude of the stop loss. This part of the content is ignored by many people, so many transactions can be doubled, or even 3-5 times.

The core of the trading strategy: the transaction is endless, and the strategy is always

Consider buying and selling according to the analysis system, and consider buying and selling positions according to the risk control system. The analysis system is often a cyclic system. In the cyclic system, we will find that the transaction is an endless market. The trading strategy is to change the embarrassing situation of being led by the nose by the market. As the saying goes, if you often walk by the river, your shoes will not get wet. Only by jumping away from the endless trading market can we truly realize the freedom of trading and the success of trading. Otherwise, we become slaves to the market, puppet of the transaction.

This is my last bit of understanding of traders. Your trading strategy must consider a complete cycle, success or failure is a game, from beginning to end. In this way, your trading behavior can break away from the disorderly changes of the market and become a professional transaction that can be retracted freely.

Questioner, you have 7 years of experience in foreign exchange speculation, how can you still be proud of the 15-day continuous profit and call it a stable profit? Don't you understand the real definition of stable profit? How can there be an embarrassment of liquidation due to an unexpected market? Don't you stop loss?

It can be said that your 7 years have been wasted; to be honest, you are not suitable for trading in this field; more importantly, since you have a decent job. According to my point of view, you should abandon the lowly and follow the good, and from now on you will not talk about transactions and only do your work. That will be the biggest and most correct transaction in your life.

Of course, if you insist on being so stubborn in trading, then I might as well talk to you about how to achieve a state of ease in trading.

What is the most important and most difficult thing in trading? You may say that it is the prediction market. Indeed, the prediction market is the most important, but it is not the most difficult, but impossible! Many people sacrificed themselves on this unsolvable mystery. The basis for the existence of the market is uncertainty, not predictability. This is one of the most important trading issues, which is equivalent to the philosophical theory of materialism and consciousness. If this problem is not clarified, all subsequent efforts will bring about completely different trading results.

There is a saying: "Trading begins with cultivating the mind, second idea, second strategy, and second skill. The world often does the opposite. The story is more effective than half!" Take it easy and make trading a spice of life rather than a necessity.

I often see the words "full warehouse operation", which is actually fatal. Fund and position management is a profound knowledge. The root of heavy positions is human greed, but the result of greed is often miserable. According to Buddhist teachings, the first thing to get rid of in practice is the three poisons of "greed, hatred and ignorance", and greed is the first!

Someone on Wall Street once did an experiment, took out a few trend charts, and then asked a few elementary school students and a few people who had been trading for several years to choose the next direction. As a result, the winning rate of the elementary school students was overwhelmingly higher than that of those who had been trading for several years of.

The reason why you attach so much importance to the precise buying point is nothing more than the following reasons:

1. You always hope to buy at the lowest point, and you will make a profit if you buy, and you cannot bear the normal correction of the price;

2. You think stop losses are disasters, so you always keep them small.

It's just that you overlooked that the importance of buying in an area, a little higher or a little lower is far more important than not being able to buy. However, how many people miss opportunities because they pursue accurate prices in the face of high probability gains.

The most idiotic person in the world is the kind of person who thinks he has discovered the truth that others cannot. I never expect to buy at the lowest point and sell at the highest point.

In any analysis software, there are all kinds of indicators, and many investors are confused by various indicators, and it is difficult to extricate themselves. In the era of information explosion, all kinds of news are flying all over the sky. If you invest in the market based on the news, you will undoubtedly fail.

Having a set of correct trading concepts can enable us to fully grasp trading opportunities, and we will not see the forest for the trees; again, an effective strategy can ensure our offensive and defensive balance in the transaction process, and the degree of advance and retreat; the final investment Skills help us find better entry and exit positions. However, most investors in the market do the opposite, so they always spend a lot of effort but can't get the ideal investment results.

The progress of each of us's EQ has roughly established the development of IQ and has a positive guiding role. People with high emotional intelligence should be able to fully, efficiently and continuously use their existing knowledge reserves, professional skills and limited intellectual resources, and make their existing knowledge produce the greatest, best and most optimized performance. Economical, accurate, realistic, and necessary direction development, rather than blind, whim, continuous advanced training, changing trading methods, and buying trading books to fill and expand their so-called intellectual space; traders with high EQ must understand Make your own IQ move towards the direction that can produce the highest, greatest, and most optimized performance, instead of studying indicators, wave theory, and K-line patterns all day long, and enriching various technical analysis skills and trading methods.

I hope that after reading the long text above, you can improve your EQ, use your EQ, and control your IQ. I also hope that you can get out of the dilemma of "the harder you work, the more you lose money", so as to achieve real retraction in transactions freely.

How to be flexible when trading?

What is the most important and most difficult thing in trading? You might say that it is the prediction market. Indeed, the prediction market is the most important, but it is not the most difficult, but impossible! Many people sacrificed themselves on this unsolvable mystery. The basis for the existence of the market is uncertainty, not predictability. This is one of the most important trading issues, which is equivalent to the philosophical theory of materialism and consciousness. If this problem is not clarified, all subsequent efforts will bring about completely different trading results.

There is a saying: "Trading begins with cultivating the mind, second idea, second strategy, and second skill. The world often does the opposite. The story is more effective than half!" Take it easy and make trading a spice of life rather than a necessity;

I often see the words "full position operation". Fund and position management is a profound knowledge. The root of heavy positions is human greed, but the result of greed is often miserable. According to Buddhist teachings, the first thing to get rid of in practice is the three poisons of "greed, hatred and ignorance", and greed is the first!

​

Someone on Wall Street once did an experiment, took out a few trend charts, and then asked a few elementary school students and a few people who had been trading for several years to choose the next direction. As a result, the winning rate of the elementary school students was overwhelmingly higher than that of those who had been trading for several years of.

The reason why you attach so much importance to the precise buying point is nothing more than the following reasons:

1. You always hope to buy at the lowest point, and you will make a profit if you buy, and you cannot bear the normal correction of the price;

2. You think stop losses are disasters, so you always keep them small.

It's just that you overlooked that the importance of buying in an area, a little higher or a little lower is far more important than not being able to buy. However, how many people miss opportunities because they pursue accurate prices in the face of high probability gains.

The most idiotic person in the world is the kind of person who thinks he has discovered the truth that others cannot. I never expect to buy at the lowest point and sell at the highest point.

In any analysis software, there are all kinds of indicators, and many investors are confused by various indicators, and it is difficult to extricate themselves. In the era of information explosion, all kinds of news are flying all over the sky. If you invest in the market based on the news, you will undoubtedly fail.

Having a set of correct trading concepts can enable us to fully grasp trading opportunities, and we will not see the forest for the trees; again, an effective strategy can ensure our offensive and defensive balance in the transaction process, and the degree of advance and retreat; the final investment Skills help us find better entry and exit positions. However, most investors in the market do the opposite, so they always spend a lot of effort but can't get the ideal investment results.

The progress of each of us's EQ has roughly established the development of IQ and has a positive guiding role. People with high emotional intelligence should be able to fully, efficiently and continuously use their existing knowledge reserves, professional skills and limited intellectual resources, and make their existing knowledge produce the greatest, best and most optimized performance. Economical, accurate, realistic, and necessary direction development, rather than blind, whim, continuous advanced training, changing trading methods, and buying trading books to fill and expand their so-called intellectual space; traders with high EQ must understand Make your own IQ move towards the direction that can produce the highest, greatest, and most optimized performance, instead of studying indicators, wave theory, and K-line patterns all day long, and enriching various technical analysis skills and trading methods.

I hope that most of our traders can improve their EQ, use their EQ, and control their IQ, so that they can get out of the dilemma of "the harder you work, the more you lose money".

I trade full-time, but I don’t spend more than three or four hours a day watching the market. Sometimes I forget that there is no single-month profit. When the profit is low, it can be doubled in a month.

Suggestions for you: slow is fast, fast is slow. Look at financial freedom from the perspective of compound interest. If you understand the connotation of financial freedom, invest 1,000, basically two to three years, and you can cross the barrier of annual income of one million.

Investors will experience all kinds of failures, just like what you are doing now. If you want to make money, if you don’t make money, you will have nothing to eat tomorrow. After all, you are already in debt of more than 100,000. But as long as you are not dead but still alive, there is hope of turning around.

Life is about leveling up and fighting monsters. The bigger the monster, the stronger the more you fight the enemy, and the more amazing moves you make. A life without dying once or twice is not a wonderful life, and it is unlikely to become a survivor! When monsters are hit to a certain extent, the vision of life is very different, the behavior pattern is different, and the level of thinking is extraordinary!

Trading is a risky business, it is a business, a risky business! At the same time, trading is a tricky thing, and some things are bound to happen. Is it difficult to make money?

The first thing that comes to mind when doing a transaction is risk, and the second is profit! I have two eyes, one is always on the risk and the other is always on the profit! Even when you sleep with one eye open, what you look at is not profit but risk!

Therefore, the key to whether you can retract freely depends on how you treat risks.

If a person makes money in the market just by luck, he will often lose money by strength in the end.

Investors work with risks every day, and managing risks well is half the battle. Looking around the world, all investment masters put risk management at the top of their list. Top investors are all conservative and love deep value.

Buffett said that there is no secret to investing, if there are two secrets: the first is not to lose money, and the second is to remember the first. Li Ka-shing said, don’t tell me how to make money by investing in a project, tell me whether my principal is still there after a few years of investment. Whether they are top investors or entrepreneurs, their investment philosophy is well-thought-out, conservative, and risk-averse.

Whether you are speculating in foreign exchange or playing stocks, you still need to have a basic awareness of risk management in daily transactions.

Risk management can be achieved with appropriate tools and methodologies. Follow the steps below to manage your risk level.

1. Determine your trading risk level

It is easy for ordinary traders to only see potential gains when trading, but successful traders also need to foresee possible losses at the same time. Traders can use a simple metric to determine the ideal level of risk: the risk reward ratio.

What is the risk reward ratio? The risk-reward ratio is used to compare the expected return on an investment with the corresponding potential loss. It is calculated by dividing the amount an investor could lose (the risk) if the price moves in an unexpected direction by the gain the trader expects to make (the return) when the position is closed.

What kind of risk return ratio is better? The ideal ratio is 1:3 or 1:4, the acceptable ratio is 1:2, and the unfavorable ratio is 1:1 or 2:1.

2. Set a stop loss order

Stop loss order means that once the market price exceeds the predetermined buying/selling point, the stop loss order will automatically become a market price order for execution.

Due to the use of leverage in foreign exchange trading, market fluctuations and price changes will magnify both profits and losses. When the volatility is high and the market is uncertain, the stop loss order is an ideal tool to reduce losses and minimize risks due to unpredictable market conditions.

Traders should not only use market orders, but also use more pending orders that include stop loss orders. You can also add stop loss orders to existing trades.

Stop loss orders can be executed in the following ways:

Sell ​​Stop Order Stop Limit Order Buy Stop Order Trailing Stop Trailing Stop Limit Order Combo Order.

3. Timely profit taking

Timely profit taking is a prudent and rewarding strategy. Rather than wait and see in a market with repeated risks in the hope of obtaining greater profits, it is better to take profits at a price that satisfies your risk reward ratio.

You can also set the take-profit condition for the existing pending order or modify the existing market order. Once the market price reaches the specified price, your transaction will automatically stop the profit and take the profit.

Another way to profit in time and minimize risk is to partially close a position. If you feel that the market may still be profitable, you can only close out some of the profits and continue to hold the rest. Because you have managed to take a portion of your profits, you also reduce your overall risk at the same time.

So, you still have to recognize the reality. There is not so much freedom in trading. Do a good job in risk management first, and then think about making profits, so that you can survive in the market.

If the trading position and the time of holding the position can match with one's own personality, that is to say, if it reaches a comfortable level, it can be called a super performance that can be retracted freely.

For example, if it is an account of 5,000 US dollars, the maximum position of gold and European and American varieties is 5 lots. Whether it is a master or a novice, if the position is full of 5 lots, the position will be liquidated if the loss is 100 points. This is an extremely full position, and it is bound to be uncomfortable. Every ups and downs in the stock market is destined to be a state of extreme tension with rapid heartbeat and elevated blood pressure. This kind of transaction is absolutely uncomfortable, even if it turns out to be profitable.

If the position is reduced to 0.1 lot, it means a loss of 100 points, a loss of $100, and a loss of only 2%. The overall impact on the position is not great, and the interference on the mentality is also extremely low. When people are in such a comfortable situation, their state will be super strong. Even if they don’t watch the market or even stay overnight, they can eat, work and rest with peace of mind. In such a stress-free state, and in a state of minimal stress, I think I can better play my own level.

Then someone said, 5,000 US dollars, 5 lots of full positions, is it profitable many times? This kind of operation seems to be prosperous on the surface. Just ask yourself, in this extremely full position, is the mentality peaceful or extremely nervous? Is it a gambling transaction or a scientific operation?

The level of the position affects the mentality and volatility, and has little to do with loss and profit. On the contrary, making money with an extremely full position is more likely to distort the gambling mentality. Therefore, the ability to play freely must be closely related to the reasonable control of positions.

Regardless of whether the subject has lost money or not, you must forget the past and start over, otherwise the past experience will become a heavy shackle on your trading road, not physically, but mentally. If you have not done this well, don't enter the market for the time being. If you are ready to meet new challenges, then let me tell you how to be like a fish in water in the market. In the final analysis, it is very simple, five words-make a good trading plan.

As an excellent investor, he will never trade aimlessly. He will have his own trading plan before trading to help him identify trading opportunities and prevent chasing the market. It can be said that formulating and executing a trading plan is an important part of trading success .

So, how do you formulate and execute a trading plan? First of all, we need to figure out the characteristics of the trading plan. Secondly, what links should the trading plan include, and what are the specific implementation methods and steps?

Features of the trading plan:

1. The plan must be predictable. Our trading plan is a foresight of the future, so before making a plan, we must have a clear understanding of various possible situations, and have a correct assumption about the goals, measures, and methods of the transaction. Therefore, without foresight, there is no plan, and foresight is the main feature of planning.

2. The plan must be procedural. In formulating a trading plan, what to do first and what to do later must have careful time arrangements and requirements. When implementing a trading plan, there must be stages and priorities. Therefore, the formulation of a trading plan must have time requirements and corresponding arrangements for each stage, which must reflect the carefulness and procedural nature of the plan.

Links and steps included in the trading plan:

1. Which analysis tool to use? Regarding analysis tools, maybe you use some kind of technical analysis or basic analysis, but no matter which one you use, you need to understand the principle of this analysis tool, and have fully researched and analyzed its feasibility and success probability. Can be used after testing.

2. What are the conditions for entering the market ? The conditions for entering the market are trading signals, which must be based on a solid and logical theoretical basis, and must be clear and not ambiguous. And it needs to be fully evaluated and tested just like the analysis method. You need to understand what is the development of a successful trading signal? What is the development of the failed trading signal?

3. How much risk will you take? The most important thing in the trading business is to learn to protect yourself. Therefore, before any transaction, you must know how much money you will invest in this transaction and how much risk you can bear. That is to say, if you make a mistake in your judgment, What is the maximum loss you can afford to make a mistake? Can you bear the loss caused by this transaction error? Will it have a bad effect on you?

4. What is the exit strategy?

An exit strategy includes three areas:

One is the exit strategy for misjudgment, that is, the stop loss strategy;

One is to successfully complete the transaction with a profit, that is, the exit strategy;

Another is whether you wait or exit when the price changes over a period of time and does not move as you expected.

The most difficult thing here is the formulation and implementation of the stop loss strategy. The premise of setting a stop loss is that you must understand under what circumstances your judgment is wrong, so we mentioned before that you must understand the principle of the judgment tool. The implementation of stop loss is difficult because stop loss involves the negation of one's previous judgment and the reality of accepting capital losses. Obviously, this is a great challenge for traders, so the implementation of stop loss is far more difficult than the implementation of stop profit.

5. What is your expected operating time and performance? When you start a transaction, you have an expectation of time and price movement target for its future development, which is very important for your future monitoring.

6. What are the possibilities for market development? We know that the development of the market is uncertain, so how much the market may happen in the future, we must have a foresight in our hearts. On the one hand, this involves your capital management. If you can keep the uncertainty of market development in mind , then you will never operate with a full position, because no one can guarantee that accidents will not happen. On the other hand, multi-faceted expectations can reduce the possibility of emotional and sudden decision-making transactions.

7. How to achieve the transaction goal? In this trading task, do you plan to increase your trading results by increasing your position? If so, under what circumstances do you plan to increase your position? If the increase fails, what exit strategy do you adopt? Partial or full position exit trade?

Note: The trading plan, like the trading diary, also needs constant inspection and review. During the regular inspection and review, you will find out what negligence you have and what needs to be improved. After improvement and improvement, you can make your trading Performance is improved step by step.

For a person who is engaged in trading or pays attention to trading, there will always be three words around him from beginning to end, that is: fear, hesitation and regret, they are like a spell that floods the market, before buying, and after buying , holding, or even after selling, it can be said to be pervasive and follow you everywhere.

So what is the root cause of this phenomenon? Personally, I think there are mainly the following "four nos": don't know, are not sure, don't understand, and don't want to;

have no idea:

A. I don’t know how to manage the position: The size of the position is not determined by the objective situation, but by the subjective will, whether it is large or small.

B. I don’t know the basis for buying and selling: but rely more on listening (listening to what the majority of people say), relying on reading (reading what the majority of people say), and relying on comparison (comparing with the opinions of the majority of people).

C. The overall probability of success of the method used is unclear.

uncertain:

The uncertainty of the market itself is also an important reason for the above phenomenon, but for traders, it is impossible to attribute all the mistakes to the market. Even if it is attributed to it, it does not make any sense. After all, money is your own, and what you can do It is to constantly learn and summarize market laws, form a set of trading methods of oneself, and repeatedly review and verify, improve the accuracy of operations and accumulate confidence, and reduce the negative impact of the above phenomena.

don't understand:

Without a fundamental understanding that the market is a probability market, it is impossible to fully accept risks with an open mind. Even if it is a controllable risk range, it will lead to unwillingness to stop losses, until the flesh is cut, and the mentality of wanting to win and fearing losses is accumulated. The longer it takes, the more inevitable a breakdown will be.

unwilling to:

Unwillingness to accept the reality that the stop loss has been broken and the reality that the market has weakened is fundamentally a behavior dominated by "subjective" ideas evolved from the perception of risks and the uncertainty of self-operation methods.

How to solve it?

1. Face up to what you have:

Market opportunities are not what you think. The key lies in how many relatively fixed trading models you have mastered. The number of trading models determines your profitability per unit time. But we know that the market is dynamic, and we can’t just be satisfied with the mechanical copying of the existing models. We need to do continuous retesting to repeatedly consider: accuracy rate, stop loss space, profit space and profit-loss ratio, etc. Wait, this talent is able to make your transactions as objective as possible and control transactions.

2. Determine what to do:

There are still three things to do when doing transactions: operating frequency, operating position management, and self-psychological counseling. These three aspects are equally important, and we will talk about them later.

3. Perfect the unknown:

I believe you can understand the principle of being familiar but not raw, so I won’t go into details.

It is normal to have such trading results, after all, the misfortunes of retail investors are varied. Whether it is 15 consecutive days of stable profits or multiple liquidations, these show that you are still far from the so-called stable profits, and you will naturally not come so soon.

Personally, I feel that your biggest bug is excessive debt. You earn 8,000 a month, after deducting daily expenses, how much is left, how much money can you save in a year, and how to fill this debt hole? Under such economic pressure, your operation behavior will be greatly disturbed. Therefore, the key at hand is not to be able to retract and release freely, but to get financial leverage as soon as possible.

In fact, engaging in debt in investment requires principles.

1. Principal safety comes first

Any investment is risky, because income is a kind of compensation for investors to take risks, and ensuring the safety of the principal has become the top priority of liabilities. As long as the principal is safe, you will not be in trouble.

2. Liabilities require more benefits than costs

Debt investing is not entirely undesirable, but it cannot be done blindly. In the case of debt investment, the investment income must exceed the interest + CPI. For all debt investors, any investment product they choose must earn more than the interest you pay and the rate of inflation Otherwise, it is not only meaningless to borrow money, but it may even cause greater losses.

3. Debt leverage is long enough

When it is determined that the income can exceed the cost, the next step is to have as much debt as possible, for as long as possible, and make the leverage long enough. The longer the leverage, the greater the prying power—that is, the greater the income. The return is a multiple of leverage.

4. Prepare for risk hedging

It's a cliché here. Investors should make some risk hedging preparations in any investment product. In case of danger, there can be a risk hedging mechanism to reduce losses.

Finally, and most importantly, do what you can. Excessive debts exceed the range that investors can bear. Once the capital turnover fails, the consequences will be disastrous. Instead of becoming rich, they will make themselves and their families poorer and poorer.

To put it simply, investing with debt must satisfy: first, the expected rate of return must be higher than the loan interest rate; second, in the worst case, there must be enough cash to repay the principal and interest.

Otherwise, please stop and go ashore immediately, lest you be swallowed up by debts!

It’s enough to think about it freely. For many people, the end result of trading is a lot of losses, so giving up fantasy as soon as possible is the right choice. It can be seen from the content of the question that you are a typical gamble, you should stop immediately and go ashore, the transaction is not worth it!

It is common sense not to borrow money for investment, how can you get to this point?

Buffett taught us a long time ago: don't short, don't borrow money, don't do things you don't understand!

We never borrow money, and I never borrow money even when I have only ten thousand dollars. It makes no sense to risk what is important to you to win what is not.

If you give me a pistol with a thousand or even ten thousand positions in the chamber, and you tell me that there is only one bullet in it, and you ask how much it will cost me, I can put the gun to my temple and pull the trigger, I will not do it. I have no interest in games like this. However, due to ignorance, people always make such mistakes.

We are not in debt. The advantage of debt is that you can develop faster. The advantage of not being in debt is that you can live longer. Anyway, whether you borrow money or not, you will lose endless opportunities in your life, but borrowing money may make you never have another chance.

At this year's shareholders meeting, Lao Ba once again talked about not borrowing money to speculate in stocks.

Buffett said that investors should not borrow money to invest in the stock market. Betting on the U.S. market is still the best bet, but also pointed out that given the uncertainty of the new crown virus pandemic, people should not borrow money to buy stocks: "When a pandemic like this happens, it is difficult to influence it. Think about it. That's why you should never borrow money to invest, at least in my opinion. There was no reason to borrow money to invest when there was a 'big wind' in the US, but there isn't any reason to do so now. "

You feel that you are gradually losing control, and a considerable part of the reason is that you are in debt, and your mentality is chaotic. How can you do it well? In any case, first solve the debt, take the initiative to deleverage, and then slowly engage in transactions. Only in this way can it be possible to get out of the current predicament.

I have also been trading for a long time. After paying a huge price and bloody lessons, I have also accumulated a little bit of my own experience and some market insights and understanding. You can learn from it.

In the speculative market, even if some people make money in the short term, their inner world is weak and uneasy under the appearance of complacency, their eyes are confused, and they lack confidence in the future; while some people even if they do not do well in stages, their thinking is clear Yes, the goal is clear, the speech is low-key, the eyes are calm, the heart is calm, and the future is confident. Differences in vision and realm determine each person's different trading life.

There is no 100% perfect system in this world. After the signal of the system appears, you can basically get started once you know that you can make big money and lose small money. On the road of trading, one must be able to resist temptation and endure hardships, which is a necessary condition for success.

"Know yourself" is an inscription engraved on the ancient Greek colonnade, and it is also a famous trading saying engraved in the heart of every trader.

• Personality determines what kind of trading strategy you are suitable for

A trading system is a tool for trading. Having a trading system is a necessary but not a sufficient condition for sustained and stable profitability in the trading market.
This shows that having a good trading system is a good start to achieve investment success, but the ultimate success still requires the cooperation of the trader, that is, the trader.
The most difficult thing in the trading process is people's mentality. There is a saying, "Character determines destiny", and in trading, it is character that determines the choice of trading tools and the ultimate success or failure of the transaction.

• Short-term trading and trend trading

① Short-term traders are not suitable for trading with the trend system. Short-term traders need to watch the market carefully and gain insight into the clues. They must be highly concentrated in trading and cannot be affected in the slightest. For trend traders, there is no need to keep an eye on the market, and they are not disturbed by the ripples on the market. Even watching the market carefully has become a big taboo for trend traders.
This completely different approach comes from the trading personalities of two different traders. Different personalities determine different concerns, different trading methods and different trading tools. The short-term trading system puts more emphasis on the success rate of the system, that is, the number of profits is required to be significantly greater than the number of losses.

②The trend trading system pays more attention to small losses and big wins, and uses continuous stop loss as cost and price to exchange for large trend profits. Trend traders are not sensitive to the success rate, and the profit times of some trend trading systems are even less than The number of losses, but in the end it is a profitable system, which fully demonstrates that the investment philosophy pursued by the trend system is "large profits and small sales, small losses and big wins".

For the two trading methods of short-term trading and trend trading, there is no right or wrong, or better or worse. The key depends on whether it suits the personality of the trader. Therefore, short-term traders choose the short-term trading system as their trading tool, and mid-line traders choose the trend trading system as their trading tool, which is a good match between traders and trading systems.
Of course, experienced traders will find a better combination point between the short-term system and the trend system. That is: when the market is in the "wait and see zone", trend traders can either stop trading or use the short-term system for auxiliary trading.

• Three charts to understand trend trading

①The first picture: trend tracking system diagram

Dao: Understand the whole transaction from three perspectives: market, technology, and people.

Technique: Inflection point->band->trend->position, and finally integrated into a chart to form a trend-following technical system.

Method: How to enter the market? When to operate? How to do it? Operation object? Four aspects have established disciplines to ensure the execution of transactions.

Detector: The operation of trend tracking is assisted by indicators such as moving average, ATR, MACD, and BOLL.

②The second picture: transaction flow chart

With a mature trend following system, we can trade according to the following process:

Make a trading plan -> wait for the inflection point to form -> execute the trading plan ->. . . . . .

The whole process is just three steps: plan->wait->execute.

The three-step trend-following process mentioned above can be drawn into a picture, which is the trend-following transaction flow chart.

③The third picture: the core picture of trend tracking technology (Granbe’s eight rules)

Trading plans include probing, building positions, increasing positions, reducing positions, clearing positions, etc. How to formulate a trading plan can be formulated according to the following eight rules of Granville.

• The essence of trend trading is that you have been following

We know that whether it is long-term or short-term, the reason for profit is to do the trend of a stage correctly, and where the market trend will go, in what form and at what speed, we generally can only fully understand it after the fact. Know.

But if we can keep up with the market, even knowing where it is after the fact, can make good money. Therefore, the theory of trend following has become an investment method recognized by many investors, and many investors have also used this method to obtain profits.

The core essence of trend following is that you keep following the market closely, always only half a beat behind it, and never predict its next beat, and you win if you just keep following without losing track. It’s as if you want to follow an important person, if he leaves home and walks in one direction, you have to follow him, don’t judge whether he’s going in that direction, whether it’s true or not; in the middle he stops to eat, you’d better also Pause, because you don't know whether he will continue to go forward after eating or go home, or continue to stay in the hotel; or if he turns back in the middle, you'd better be ready to turn back with him at any time, because you still don't know Did he forget something and went to pick it up at the restaurant and came back immediately, or went home directly, or continued to walk in the opposite direction without going home; the only way to ensure that he will not be lost is to follow him all the time, not to judge him. Where will he go in one step, and then choose an intersection that he thinks is suitable to wait for him.

Within a specified period, as long as you follow him all the time, if you keep up with him, you win, you complete the task, and you can get paid. His turning back and stopping in the middle may make you uncomfortable, but in order not to lose him, for Not to lose the final reward but must accompany him to turn back and stop.

Enlightenment: Trading is a game. The ups and downs of a day or a week have nothing to do with fundamentals. Money is just a bunch of numbers, chips in the game. If you can afford it, you must let it go. In this way, you will only have the trend and grasp the trend in your heart and eyes. Get rid of the pain of being stuck! ! !

When you have a trading system, you feel that trading is quite boring. Every day, you just watch the signal on the computer, operate when there is a signal, and wait when there is no signal. Watching the ups and downs of capital figures, one day inadvertently finds himself a millionaire or multi-millionaire.

Never think that a profitable trading system can guarantee your success in every transaction!

Any profit is made up of small losses and big gains. Any trading system has weaknesses, and losses are inevitable. For the trend following system, it does not require the number of times of profit to be greater than the number of losses, it only requires to constantly use small stop losses to find large profit opportunities. Such a system requires users to be prepared to accept small losses continuously Prepare.
As for the speculative trading system, it pays more attention to the pursuit of the number of profits than the number of losses, and it pursues accuracy. Therefore, investors must know which system is suitable for them when choosing a trading system, and must not choose blindly. 

Speculation trading requires investors to pay close attention to every move of the market. Fluctuation is his source of profit, and there should be no interference in the transaction. On the contrary, trend trading is taboo to keep a close eye on the market, which will destroy his overall grasp of the trend. , volatility is the source of his losses, he only needs to pay attention to whether the market trend changes.

However, most investors in the market try to obtain trend profits by carefully watching the market, which makes them unable to grasp both speculation and trends.

The essence of system trading is to deal with what is happening, not what will happen in the future. It trades based on trading signals rather than predicting the market. But many people in the futures market spend too much time dealing with what will happen in the future, but are at a loss for what is happening. This prevents his transactions from being carried out effectively.

He always wants to be ahead of the market but ignores the reality of the market, so that his transactions are in illusion and lack a realistic basis. This goes against the nature of the trading system. Correct trading thinking is the prerequisite for using the trading system!

When the system is in a loss period, don't easily think that the system needs to be changed or replaced. Loss is a normal phenomenon and must be accepted. At this time, you should tell yourself how to improve your ability and patience to deal with difficulties. And in the profit-making period of the system, you must not be clever and think that you can use your trading ability to improve the efficiency of the system. At this time, observing discipline is better than everything else!

The difficult period of the system can improve your trading ability, and the harvest period of the system can test your self-discipline!

For system traders, the ups and downs of the market are no longer important, but the execution of trading signals is important. Because the system's trading signals often contradict your views on the market, many trading opportunities are missed by investors' hesitation, which is also the key to the different trading results using the same trading system.
Whether the market is rising or falling, the system will send out trading signals at critical moments. Seriously implementing the trading system can greatly simplify our transactions and make transactions simpler and more effective. This is the fundamental reason why the trading system is so important.

First of all, there is absolutely no perfect method system, you have to choose between bear's paw and fish, which is why there is no so-called holy grail of trading.
Faster, more timely and more sensitive signals will inevitably bring more false signals and more stop losses. But a more stable, safer, and reliable signal will inevitably give up a large segment of the market, or only grasp fewer trading opportunities.

Each system has its own advantages and disadvantages. In the long run, the effect and rate of return of various methods and systems are almost the same. Therefore, the method and system are not the problem at all. The problem is how to stick to the system and manage the capital position well.

Everything that prevents a person from being successful is all inside. Experience determines emotions, and emotions determine behavior. No matter how good the method is, there are also losses, and they are frequent losses. It is difficult for a normal person to remain indifferent to these loss experiences. No one's heart can bear seeing his frequent losses.

But you have to accept these losses. If you are clever and want to deviate from the method system in future transactions, avoid losses, or want to close positions early to lock in profits, I promise...you will definitely miss the real big profits later. Chance.

Since you have been doing foreign exchange for 13 years, you should have a mature trading system. If the trading system is still immature or incomplete, the first step is to optimize the trading system if you want to turn things around.

There are tens of thousands of trading systems, and there must be good and bad points. If any system is worth sticking to, why should investment institutions pay attention to academic background and IQ when recruiting people? Wouldn't it be more delicious to directly test Yugong's perseverance like moving mountains?

A system that loses 10 times in a row is really not a good system, and if the maximum 10 consecutive losses is the result of your historical data simulation test, then in reality, if you add your human error, you may lose money continuously due to unpredictable factors in the future 15 times, this is still based on a single variety, because the simulation test is generally based on the trend test of a variety for a period of time. If you do two varieties at the same time, you have the hope of losing 30 times in a row. Don't think that the probability is very small. Murphy's Law only governs all kinds of dissatisfaction. Under such a system, we must keep our positions very light, otherwise you will explode in minutes, and put a large period to filter invalid signals, so why do a bunch of people tell you that the secret of speculation is to persist and light positions , long line. Because with their IQs, they really can't think of any tricks. I feel that this is the final truth. In fact, it is no different from the reality of dropping out of school to work after graduating from primary and secondary schools.

When a trading system is initially finalized, people will definitely test the system on the basis of historical data. If this system can be programmed, then it will definitely test several varieties, adjust all the parameters that can be adjusted, and then add various filters to improve the profit effect or make the profit curve look better.

In short, only after the trading system is perfected can the position of the game be gradually enlarged. Otherwise, the fate of the account will be over before you find a trading system that suits you. This is an important thing to pay attention to when designing a trading system.

In the second step, you said, "When trading, the subconscious always wants to get it back, and countless positions have been liquidated for this." This is a question of mentality. "The subconscious always wants to get it back", which is a bit of a gambling mentality. The profit of a transaction is a continuous process. . If you want to cultivate your mind, you can use Buddhist scriptures and read more original texts of Buddhist classics, which may help you change your mentality.

A suitable trading system, coupled with a good attitude, can finally move towards the ease of trading.

Thank you for answering

When I saw the topic, I felt that there were too many things to write for the discussion, and I was getting lazy and didn't want to write too much.

A brief analysis of the mistakes made by the subject of the topic, I hope you can gain something.

The subject of the topic is a mistake that countless novice traders have made, and there will be countless novice traders who will repeat the mistake in the future.

As long as you have a liquidation, it means that you do not understand fund management and risk control. This is the advice given by countless veterans to novices. This bottleneck must be broken through, please stop trading, study and learn how to do money management! Not to mention winning 15 days in a row, even if you win 100 days in a row, a liquidation can knock you down. What's the use? The real master is to lose 15 pens in a row, and the funds in the account are still as stable as Mount Tai, and will not be fatally hit. Of course, the losing streak mentioned here does not refer to the streak like the subject!

1. Maximum single loss

Please follow the 2% rule, that is, if the order is wrong, the maximum loss is 2% of the total funds in the account

2. Where is the stop loss?

The principle is: when the stop loss is knocked out, it is the time when the trend completely reverses​, so the stop loss must leave enough room for the market to toss, and don’t knock out your stop loss with a normal callback.

3. What is stable profit?

These four words are the highest state pursued by countless traders. If you win for 15 days in a row, you dare to say that you have a stable profit? The standard for stable profitability is simple: at least one year of steadily rising capital curve. Those roller coaster money curves are extremely deceptive and very fooling. ​When the capital curve is at the top of the mountain, not only will you feel that you are a master trader, but people around you who know your profits will also regard you as a master trader. In fact, you are nothing, just a joke.

4. Probability game

Trading is a game of probability. It is normal to lose a few times in a row and win a few times in a row. The question is how much you lose when you are wrong, and how much you earn when you are right.

5. Profit and loss ratio

​Too many people are pursuing the correct rate, hoping that they can make every transaction correctly, while ignoring the profit-loss ratio.

The principle is: When you make a mistake, you only lose a small part of the total capital, and when you win, you must continue to increase your profit and increase your position to earn the maximum profit, and as long as the trend is not over, you must be in it. ​

6. Floating profit increase position

How to increase floating profit? Why does the master's floating profit increase the position so that he can earn unimaginable profits when he is right, while the novice's floating profit increase the position will eventually lose all? Because the characteristics of the novice’s floating profit increase are: increase the risk while increasing the position, while the floating profit increase of the master is: increase the position without increasing any risks.

I really don’t want to go into detail about each article, because each article is a very big topic, and it would take a long time to finish. . . . . .

Thank you two friends for the invitation. Mazhao also came into contact with spot trading in about 13 years, but when I started, I was doing gold. After the eight-year war of resistance, it is still a loss. But I am fortunate that I have withstood the temptation and suffering. I did not borrow money to speculate in foreign exchange, nor did I abandon my family and work for the so-called full-time speculative foreign exchange. Although I have been losing money, it is harmless. I have never let the transaction ruin my life. Lose my life. Ordinary people engage in transactions mostly because of temptation, the temptation of huge profits. Some people get scared after several warehouse explosions, completely cut off their thoughts, left the market, and returned to ordinary life. It is not a great wisdom to be able to break away from it. However, more people have completely become slaves to their desires after having tasted a few times of profiteering. For an illusory fantasy, they are excited to fight in and out of the market, and they have long forgotten the original intention of trading. So I say, for novices in trading, huge profits are more terrifying than liquidation, because huge profits fascinate your mind.

I don't like to talk about trading skills with a loser who has been losing money all year round. It's almost like talking about gambling skills with a gambling dog who has been bad gambling all year round. He knows everything, he knows everything, and when it comes to trading techniques, he is better than you. He has also fought for a thousand dollars, and his brilliant record is beyond the reach of many professional traders. The difference between a trader and a trader is like a cloud of mud. Without professional qualities and systematic techniques, a person engaged in trading is like walking through a primitive jungle full of ferocious beasts with bare hands. It is an extravagant hope for you to come out intact with all your skills, let alone fantasize about harvesting. There is no essential difference between a good trader and a bad gambler. The quality of trading skills does not depend on how much money you have made, let alone how long you have maintained an unbeaten record. Good trading skills are not for short-term profits. It must first ensure that you will not be hurt by the market , to ensure that you can survive the market and live by trading.

​There is an important logic in the psychology of gamblers, that is, the next time you must make money, as long as there is another chance, the hope of betting on dogs will never be shattered. The main question is how can we retract freely? There is only one situation where gambling dogs can stop trading, and that is when they are surrounded by all sides and are in a desperate situation. He can only accept it until he is penniless and owes a debt that cannot be repaid. hand, his next choice can only be the rooftop instead of the gaming table. At the beginning, every gambling dog believes in small gambling, but gambling is gambling, and gambling has no size. If you lose, you want to make money, and if you win, you want to win. After losing for a long time, you become numb. If you win, you must win big, so your bet will become bigger and bigger, you will not hesitate to borrow money to raise the gambling capital, you will disregard your career, family, future and destiny, even your wealth and life, as long as there is another chance to make money Opportunities, gambling dogs will never give up, so it is true to say that you will lose if you gamble for a long time. Engage in trading with a gambling mentality, no matter how many positions you have turned over, no matter how good your skills are, no matter how long you have been undefeated for a long time, you will always suffer disaster in the end. The time is your end.

Trading and gambling are two sides to one thing. It depends on how the trader is determined. Ma Zaw once wrote a special article to analyze the relationship and difference between the two. Once a trader is confused, it is easy to become a gambling dog. I suggest that all traders read a novel, ​Yan Geling's "Ma Ge is a City", which was made into a movie by director Li Shaohong. Whether it is a coolie farmer, a millionaire, or a high-minded artist, once they get on the gambling table, they all look like dogs. Coolie farmers lost their suits and top hats, millionaires lost their companies and mansions, artists lost their huanghuali statues that they had accumulated for half their lives, and casinos don’t care how much money you have. Duan Kaiwen, the real estate tycoon played by secretary Dakang, once won 20 million in a row in one night, and Mei Xiaoou, who bet against him in the dark house, would pay him 80 million, but he still refused to stop because he was in other places. He owed several hundred million in the field, even if he won one hundred million in one night, he still had to die, he had to continue to win and win enough for those several hundred million, so he lost, lost the last chip, The overnight struggle just added a few million more to the hundreds of millions of debts.

​Gambling debts will never be paid off by gambling. It will always be land, real estate, wages, etc. that are paid off by the blood and sweat of the family. The same is true for business transactions. The debts owed by transactions can never be repaid by transactions. You still need land, real estate, wages, etc., which are all the blood and sweat of the family. Engaging in trading with a gambling heart is like lying in a mud pit. The best way is to stop, jump out of the pit, and walk around from now on, instead of digging the pit deeper and deeper. Those who engage in trading with a gambling heart, don’t be complacent about your trading skills. Gambling skills are not worth showing off. Even if a big smoking gun is made of ivory and studded with gems, it is rubbish. No matter how high the gambling skills are, it is shit. Eight years of trading have caused you to owe huge debts, and your wife and children have been separated. You should wake up. The habits you have developed in the past eight years have made you unchangeable like a drug addiction. Your experience has repeatedly proved that you are fundamental in trading. Impossible to succeed. The good thing is that your debts are not so bad that you can’t pay them back. Fortunately, your work is still pretty good. You are not at the end of your rope. What you have to do is to stop and pay off your debts. Since then, he has been reborn and started all over again. He is also a hero.

There's no easy way, what comes and goes, and that's deceiving to most people.

Debt is equal to two to three years of disposable income, and the profit for many consecutive days is directly eaten up by a liquidation, and the partner also ran away. . . This is not a puppet, but a typical example of a prodigal businessman.

The reason for such a result is not only limited personal qualifications, but also related to the market environment. Trading is a final with only winning or losing, and the lucky few are destined to be able to move freely.

The simple solution is to wash your hands in a golden basin, cancel your account, and you will get better and better! But this is definitely not what you want, and you will not be so willing to do so.

It is not impossible to persevere in the market. If you never forget, there will be echoes. Anyway, I believe it.

Remember one thing about the market, that is, those who follow will prosper and those who go against will perish! No matter how big or small your capital is, no matter how fierce and sluggish your tactics are, you must follow the trend. This is a fact that has been verified countless times in history.

If you stand on the conforming side of the historical trend, then continue to stand firmly, and make timely contributions to make the active relationship unique. If you stand on the opposite side of the trend, then quickly admit your mistake and leave, and immediately stand on the conforming side.

Even Soros blocked the pound after careful analysis and concluded that the fundamentals of the pound would definitely have a depreciation trend before he dared to intensify the conflict and burst the asset bubble. The role is nothing more than compliance and promotion, not reversal. The market is almost fair to any investor.

The final direction of the market has its own reasons. Investors are constantly trying and making mistakes. If they make mistakes and leave quickly, they will not make a big mistake. If they make mistakes and go their own way, they are cannon fodder.

In addition, the specific transactions you make must be strategic. Every time a situation arises, there is a corresponding strategy to deal with it, which is very reasonable and can avoid unnecessary risks.

At the beginning, you must fix your time zone, your volatility, your capital ratio, and your win-loss ratio. Just like an equation, you have to determine the unknown value first, you have to know where you are going, and then think about how I will get there.

Some relatively fixed value ranges can greatly reduce the difficulty of your breakthrough in the initial technological breakthrough and increase the possibility of your leap forward. There are not many people, just work. Behind the market is capital, behind the capital is people, and the master of people is habit. You won't win with the mentality of playing for a while, you still have to take it seriously, analyze it objectively, and gradually improve your rationality on the left side to overcome the sensibility on the right side.

For example: extremely light positions in the trial stage, or simulated funds. The bottom position is the first position, and you can try the order. After you make a profit, it will prove that you gradually have the initiative, and then you can increase the position. The proportion of head positions is best not to exceed 10%. The general principle of stop loss: the shorter the time, the better, and the smaller the range, the better. The more firm the attitude of stop loss, the better.

Facts have proved that for a correct order, the time for floating profit is much longer than the time for floating loss. Wrong orders often make a fuss about losses, and correct orders always make a fuss about profits.

It should be understood that the conditions for profitability are systematic and are the result of comprehensive factors such as experience, psychological quality, objective analysis ability, fund management, etc. Things and things are always multifaceted, and it is unrealistic to try to control the overall situation with unilateral means of control. You need systematic and comprehensive control.

How to be flexible when trading?

Regardless of the problem itself, one thing can be clearly understood from your problem description, that is, you like to carry orders! Therefore, in order to achieve the smooth retraction of problems, there must be strict operating discipline. This is the only weight for you to survive in this market, and it is also the premise for you to operate freely.

From another point of view, your operation has been able to achieve profitability for half a month in a row. This can only mean that your current operation has initially become systematic, but you must know that all trading systems are only in the early stages of construction. Imperfect, and not all trading systems are suitable for all market conditions. At present, your trading system has such shortcomings. All you need to do next is to optimize your own trading system for such shortcomings. , Of course, what needs to be specially reminded here is that a trading system with a risk control system must be added, so that it may be a perfect trading system.

From the above description, it is not difficult to see that if you want to be able to play a role in this market with ease, you must have a complete trading system.

To put it simply, trading systems can be divided into two categories, one is the trend trading system, and the other is the intraday trading system. These two need to be reasonably selected according to one's own trading style.

Here, because the subject of the topic has already expressed such a statement as making profits for XX consecutive days, I suggest that you consider building a trend trading system, so that you can have more time to optimize your trading system, and you can also avoid frequent trading within the day. trading behavior.

As for the components of the trend trading system and the intraday trading system, I won't make too many statements here.

So on the whole, the trading system is a prerequisite, and a reasonable risk control system can get rid of your current embarrassment. The above are just personal suggestions.