Abstract: The trading market is a very challenging and demanding market, and related work is considered to be a highly technical, quantifiable and psychologically demanding profession. So always be sober in trading, what am I trading? What is the nature of a transaction? What about trading strategies?
The trading market is a very challenging and demanding market, and the related work is considered to be highly technical, quantifiable and psychologically demanding. So always be sober in trading, what am I trading? What is the nature of a transaction? What about trading strategies?
No matter what kind of transaction it is, its essence is the process of chasing the probability of rising and falling and participating in the capital game. Although various economic news policies and employment inflation data are flooded in the market, they will not be directly reflected in market prices. The market price is the investor's psychological expectation, and once the psychological expectation is realized, the market price will reverse.
Technical indicators, on the other hand, are tools that we use to increase our probability of winning, with indicators that predict declines and indicators that help us improve our profitability at the point of judgment.
The market is unknown, and no matter what means are used, there is no guarantee of 100% profitability. What investors can do is to understand the nature of the transaction and improve the probability and stability of profits. Try to reduce losses caused by emotional, psychological and other factors in trading.
There is a certain probability of winning or losing, and even Buffett and Soros cannot make a profit forever. Ordinary people can't make profits forever, but they can increase their profit probabilities by developing good trading habits.
Trading rules make transactions orderly and "rule-based". It allows you to trade without impulse in a state of mind that is in a state of mind that is both market and unstable.
Investors can trade with technology as well as fundamentals. Regardless of the method used to trade, find a method that suits your own judgment of the rise and fall and the advance. These methods can be obtained by reading books, studying online, or by communicating with experienced people. The key is that what works for others may not be right for you, and everyone has to find the method that works best for them.
Trading rules aren't perfect from the start, it's a process of continuous improvement. In the process of trading, you also need to copy each of your trades according to the trading calendar and constantly improve your trading rules.
After the rules are formulated, there is also a trading plan, such as when to trade? How much is the transaction? What products are traded?
The plan is to enforce the rules of the transaction in an orderly manner, so that you can prepare well in advance and arrange your time reasonably. Transactions without a plan may show inpatience with the market and miss some good opportunities.
Just like life and work, there is a plan to keep transactions under your control and in an orderly manner. Plans need to be formulated according to their own style, time and investment funds, and profit targets.
If you want to make a stable profit in trading and increase the probability of profit, no matter how much money you have, you can't ignore the risk. Remember to live in the investment market and survive first, and then pursue profits! That is to say, every trade must be precautioned against risks, and every trade must be set to take profit and loss. And learn to calculate the risk return ratio, according to the risk that you can bear, set the transaction size and capital.
Keep a light warehouse when trading, first try to explore the market trend, and then implement the warehouse according to demand, if there is a loss, the loss brought by the light warehouse is not large, if there is a profit, there is still room for the warehouse.
Anyone who understands the nature of the trading market knows that profits and losses are certain probabilities, and if you make a mistake, admit that you have lost the mistake and stop the loss in time, don't carry it dead, no one can fight the market. When the loss of a pen transaction has exceeded the range of expected profits, the transaction has lost its due meaning, but has become a cancer on the transaction itself, who would be willing to make a profit of 10 dollars and bear the risk of 100 dollars?