A good trading philosophy is extremely important and surpasses all technical analysis and fundamental analysis!
Trading philosophy: It is the result of combining and summarizing your views, thoughts, understanding, and concepts on trading.
1. The market is like the African savannah. The most important thing is survival.
2. Principles of technical analysis: Keep it simple, so simple that you don’t have to use your brain, and don’t be superstitious about complicated technical analysis methods.
3. The system you are going to use must be tested by time and actual combat.
Have confidence in the system you set up, rather than relying on personal emotions, prejudices or wishful thinking to surpass and improve it.
5. You must be patient and wait off-site for the operation signal issued by the system. Once the position is established, you must have the same patience to hold the position until the system issues a reversal signal.
6. You must strictly abide by the principles and operate according to the signals indicated by the system.
7. Enter the market only when it shows a strong trend.
8. Entry point: when the consolidation breaks through, when the trend reverses, when the market rebounds or retraces 45%-55%.
9. When you misjudge the trend, close your position immediately.
10. When the trend analysis is correct, pyramid the investment.
11. Money is earned by "sitting", not by operating. You should close your position only when you use objective methods to judge the trend reversal.
12. How to kill the boring time of long-term holding is also the key to whether you can hold positions for the long term. If necessary, you can use the "ostrich policy" to avoid the tension caused by the most violent market fluctuations in the middle of the big market.
13. The risk and return included in the price is a possibility, not something that can be achieved absolutely. We can use technical tools to determine the probability of this possibility, but we cannot say that it will definitely happen, which is why we need to stop loss. In the secondary market, anyone who talks about absolutes is either a god, a liar, or a layman.
14. Price is the only object to consider when trading. I advocate trading with eyes only, preferably only eyes and hands. Eyes look at prices, hands type on keyboards, ears are blocked, and thinking stops. The financial market is a place full of rumors and gossips. There are more scammers than money. Even if Sherlock Holmes is invited, he may not be able to find out what is true and what is false. But there is a tool that can reflect the actual situation most objectively, quickly and completely, that is price, so I advocate that price is the only factor we consider.
15. You can only trade based on your view of the market. Once a person makes predictions about things, vanity will be reflected, making it difficult for him to accept anything that is different from his predictions during the trading process. However, real wealth is achieved through smart exits, because it allows traders to stop losses and roll profits. In short, people make money by discovering themselves, realizing their potential and keeping pace with the market.
16. When a rebound or consolidation occurs, people begin to become hesitant, and most transactions become chaotic. Short-term attacks begin to appear frequently, and long and short positions frequently change hands. Not only are they lost in direction, but they are also lost in themselves. This self is belief and its trading system! This kind of loss will eventually prevent traders from going further. As long as you trade according to the signals and act according to the rules, you will inadvertently find that trading is not that difficult. 17. Stick to one approach, study it thoroughly, control your mentality, and you will succeed.
18. Most investors don't realize that there are only a few days a month when you can make big money. The rest of the time, if you don't get into trouble, you have done your part. Remember to always keep your account intact and wait for the big market to come.
19. Trading is like commanding an army. If you are 50% sure, you won't fight. If you are 70% sure, you won't fight either. You have to wait until you are 100% sure before you attack with all your strength. 1. But wars are changing rapidly. How can there be anything that is 100% certain?
20. Technical analysis is a trader's behavioral discipline, not primarily a prediction. It helps you identify trends and follow them. Do what you have to do and stop when you have to stop.
21. In a strong market, the buying point in the technical indicators is accurate, but the selling point is not; in a weak market, the selling point in the technical indicators is accurate, but the buying point is not. 22. Positions that "follow the trend" may have great profits, so don't "abandon the ship" easily. In this process, there may be many temptations to tempt you to see some small fluctuations and rush to go against the trend. Unless you are familiar with this and set a stop loss point, don't enter and exit at will. 23. People make judgments based on price fluctuations, but if people's hearts fluctuate faster and more than prices, they lose the most precious concentration, so it is easy to deviate from the judgment of trends, and of course it is easier to overturn their established investment plans again and again, and fall into the dilemma of chasing ups and downs.
Finally, I'd like to say a few words: There is no certainty in the probability game. If you are willing to accept this market, it proves that you are willing to accept the probability! Giving up certainty and small probability and doing things with high probability is your best choice. When you know that a product can rise by 50%, then you must know that it will fall by 50%!
Learning to take a break, slow down, and make friends with time is not only reflected in when you hold positions for a long time to make profits, but also in how long you can resist being tempted by the market!
The article can be used for reference and reference, but not to be followed. Learn to cultivate yourself!
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