Thoughts this week: The underlying logic is the key to improving trading capabilities
No matter how big the truth is, it is actually realized by the underlying logic. Countless philosophical quotes are themselves summarized from the small things in ordinary life, and are finally summarized into one classic philosophical quote! In reality, people only recite famous quotes and philosophies, but ignore the essence of things. Many of them are contrary to reality when used. The same is true for trading. The essence of every transaction is also generated by the underlying logic. If you don’t understand the underlying logic and basic thinking, you won’t understand why it is the essence. How did this sentence come about? For example: The issue of leverage is a commonplace. , you need to use force to do anything. Can you move a stone without leveraging it? (Several levers are described in detail in "The Navarre Book", but in fact, everyone can start with the smallest things, such as media levers such as tweeting)
It is very common to use leverage in the trading market, but you must be able to use it and use it reasonably. It is meaningless to blindly discredit leverage and exaggerate it without being clear from the beginning. If you just use online loans to gamble in the market, that's not using leverage, that's shooting yourself in the foot. When you have been in the market for many years and can really control the changes in the market, the reasonable use of leverage can accelerate the presentation of results. Generally speaking, you use funds from relatives and friends at the beginning, because after all, they are people you know closely. They opposed you at first because they weren't sure you could do well. When you do do well, they will turn around and become your strongest support. So when they oppose you, don't complain that they don't understand you, just You just didn't make it. You have to be careful with your calculations. The money you borrow should not just be calculated on how much bonus you give them if you win. Balao's low-cost leverage is not available to ordinary players. If you use it and have a stable profit system, should you use it?
