Many masters say that trading is an art, from an artistic point of view, trading many times there is no strict, standard paradigm, there is nothing should or should not be, more often the trading masters are guiding the practice according to their own cognitive level, rather than following a layer of rules, because there are no universal rules that are fully applicable and have always been unchanged in the market.
But that's not to say that trading doesn't need rules!In fact, on the contrary, trading requires too much of a strict system of trading rules, but I understand it personallyIt may be more important to understand what not to do than what to do, otherwise it will be in and out of the market frequently, with ups and downs in small profits and big losses, and will soon be eliminated.
Judging from the information revealed by many trading masters in the text, they have a pitiful number of transactions a year, maybe only a few or a dozen times, and more often they are watching and waiting. How is it possible to have a big ** every day?How is it possible to have the energy to pay attention to so many markets?How can it be right all the time without making mistakes?......If you understand these questions, you may be able to bring some new insights to your trading.
So, when the average trader is immersed in the market in and out, discovering one opportunity after another, it may be necessary to ask yourself: is that an opportunity?Is this opportunity something you can seize?How much risk does it take to test this opportunity?How much it costs to get it wrong ?......After asking a few questions, the current so-called "opportunity" may not be an opportunity, but a poisonous bait!In this way, the trader can always stay sober and have the possibility to seize the real opportunity with the mentality of a bystander!
Many successful traders don't trade many times, but they achieve consistent profits because they know what not to do and what not to do!For example, when the general trend is upward, don't always think that it will reverse and sell shortThe opposite is also true!Instead of constantly guessing and betting, why not wait for the reversal to take shape before raising to keep upIn war, those who rush to the front may become heroes, but more often than not, they must be cannon fodder!There is also a saying: the one who has the last laugh is the biggest winner!The same is true for the world of trading**Trading is war, there is no win-win, only success and defeat。So, as an ordinary trader, don't be a hero, wouldn't it be better to be the veteran who has lived the longest!
The most important thing on the battlefield is to stay alive, then in the trading market,The most important thing is to ensure the safety of the principalDon't be knocked out!To do this, in addition to knowing what not to do, it is very important, such as not entering the ** trading market, then it will definitely not lose!But obviously not enough, whether you trade once or ten times, you still have to trade, then you must know what to do at this time, and the most critical point is to know the stop loss!
Is it hard to stop losses?It's not difficult at all, you can operate it with a little bit of your phone, and there is software that can preset the stop loss range, and the stop loss will be automatically set after the order is placed. But even so, many times it will still cause huge losses, and the following is combined with the "experience" of personal losses from a psychological point of view.
Many times traders are reluctant to stop their losses, not the fear of the amount of loss on the book, more often, it is the natural optimism and the psychology of avoiding regret。Because the market is always volatile, traders agree that ** will not go up or down all the time, and will always reverse at some point. Therefore, for example, when there are more varieties of **, the trader will**, think that it may stop falling next**, and set a stop loss for himself (this stop loss may be a psychological stop loss or a preset stop loss order). As a result, **continue**, when approaching the stop loss point, it stands to reason that the stop loss should be withdrawn, because the market has proven the previous judgment wrong!But often traders will continue to hold on to the grounds that the current ** is already very low, and there is a high probability that it will be nearby**, take a look!This is unwarranted optimism. There is another reason: if the market is ** after the stop loss, it will not be a big loss!Look at ...... againLook at it again, and even more will increase the position in the opposite ......Go ahead and look at ...... againAnd the final result is nothing more than two: **Indeed**, look, how wise, fortunately there is no stop loss!**Continue**, in the end, I really can't bear the loss and close the position after a big loss....... The former will give the trader more confidence, and the experience of "success" will make the transaction repeat such a process, but there will always be a painful lesson ......;The latter result may give traders a moment of sobriety, but if you can't completely change the wrong way of trading and psychology, repeating yesterday's story is inevitable!
Trading the market, there is no need for stubborn diehards. Relative to the market, the individual trader is like a drop of water melted into the sea, and can only move with the waves, and it is impossible to change the flow of the sea. As a drop of seawater, how do you determine the direction of the waves?As a bystander, you can see it clearly, but as a drop of water, you can't know where you are. What to do?Find a reference, such as a mineral water bottle, and judge your position by observing the next direction and trajectory of the mineral water bottle. If the bottle is moving upwards and is getting faster and faster, it is possible that the waves you are in will push the bottle higher;If the upward speed of the bottle is getting slower and slower, and finally tends to be stationary, it can be guessed that the bottle will fall next, of course, it is not ruled out that there will be a bigger wave behind to push the bottle higher. At this time, you can go to the test, and the result is nothing more than right and wrong, if it is right, the power of the waves becomes your own power;If you are wrong, of course, this drop of sea water will also be carried away by the waves, but as a drop of water in the sea of the trading market, it is to exit in time, and do not be carried by the waves to run in the opposite direction!Is that going to be the other way around?Who knows if the waves that break out of the water will be swept to the bottom of the ocean right away?
Trading opportunities may be available every day, but it does not mean that you should participate in them every time, and those opportunities may only be minute-level fluctuations, or hour-level adjustments. If you fancy these opportunities and participate in them, then be ready to play in time, such opportunities correspond to short-term profits and losses, and must not let the established ** transaction should become a long-term hold for a loss, because traders do not consider their long-term risks, and no one wants to make the transaction become a gambling buy size!
All trading is about making money, and the essence of making money must be to exchange small losses for big profits, not the other way around!
How to achieve small losses?First of all, make the potential loss as small as possible, such as try not to make a high after a big rise**, and don't sell after a continuous break of the low. Then resolutely stop the loss. The market is the refereeIf you lose money and reach the predetermined stop loss point, you must resolutely exit the market, the market has made a penalty with a loss, even if you think that the market is unfair, but the market must accept the penalty. Maybe the market is moving in the original direction after the stop loss, and that's okay, you can continue to buy back when the right opportunity arises. But if the market moves in the opposite direction, it will cause huge losses and make the principal suffer even more losses.
How do you make a big profit?Of course, you need to find the big **, and the big ** must not always be there, you need to wait, when the ** appears, you must hold the big **firmly, and be able to face the huge psychological pressure brought by repeated fluctuations. It's certainly hard. Some traders are good at ** trading, frequent entry and exit, and it is also extremely difficult to accumulate profits by grabbing small bands. So, it's really hard to make a profit from trading!In the end, it also follows the law of large numbers with one profit, two draws and seven losses. Don't fantasize about making money easily in the ** market, although it is easy to make a profit, it is easier to lose money!
Be brave enough to admit your mistakes and resolutely do a good job of stop loss!Start planning for my 2024Put the safety of the principal above the profit!
Know when you want to do something, and know when you shouldn't leave something!
Survive the trading market and become the winner in the battlefield, not the hero!