In ordinary trading, only a small number of people make money. Some people occasionally make profits, but it is difficult to maintain stability, so it is very important to build a trading system.
The trading system is not a method or a certain indicator to operate alone, but a combination of methods, strategies and rules. If you rely on a certain indicator alone to open and close positions, you will make a profit, and the profit and winning rate will be better with this method. Okay, but there is no way to predict the normal market, and there is no perfect trading strategy, so in trading, you will lose money and make money.
Theoretically speaking, as long as the winning rate and profit-loss ratio are well controlled, you can still make money, but the point is that we are not robots. People all have their own personalities and are affected by emotions, such as greed and fear. In this state, it is very difficult. Trading rationally should be a step that every trader has experienced. When he makes a profit in a certain transaction, he will be complacent and feel that he can still do it according to the previous method next time he encounters such an opportunity.
Self-aggrandizement, setting positions at will, ignoring risks, opening the APP to place orders, or buying at the bottom, buying more and more as the price drops, and then holding on to orders, and finally liquidating the position. After the liquidation, the calmest time is.
At this time, you will slowly review the trading. The trading strategy can be very clear, but it is difficult for us to control ourselves, so we need to find a series of rules to help ourselves and make trading more beneficial to ourselves. The trading system is to set up a series of rules that are beneficial to yourself. The key point is that these rules are in line with your own personality and emotions.
In fact, to put it simply, everyone has a trading system that belongs only to them. How can you have a trading system that belongs to you? Watch more and operate less, try and make mistakes with the least cost, and slowly you will form a trading system. Your own trading system.
Let’s share some big ideas
1. Do a good job in risk control to prevent large losses
The key point here is, don’t take out loans or borrow money to speculate in currencies, use your own money that will not be affected to play in the trading market. In the past few years, I have seen too many people borrow money to speculate in currencies. Most of them just left the market after losing money, and then started The long road to repaying debts, the trading market is the casino, and the biggest taboo in gambling is loans and borrowing money. Don’t look at how much other people earn from loan studs, think about the consequences you can bear, and think twice before you act. It is necessary to set the amount of principal occupied by each transaction, preferably 3-5% of the total principal, so that you will not lose too much money in a single transaction. Second, let each position have a fixed calculation method. , less casual.
2. Think rationally and choose cycle trading that suits you
Trading generally looks at large cycles, such as 4H and daily K and weekly K. The larger the cycle, the more reliable the technical analysis. Then you need to control your emotions and give yourself time to think. Have you noticed that if you do too much short-term trading, you will easily lose control of your emotions because you don't have enough time to think?
Excessive trading will also make you emotional, so making the cycle bigger can make you more rational.
3. Give yourself confidence and review more times
After doing the above two things, you can think about strategies and indicators. There are too many indicators and strategies in the market. When you have no clue, you can choose indicators or strategies that you can understand to implement.
For example, very simple MACD, moving averages, Bollinger Bands, etc., these are the most common indicators on exchanges. If you are interested in other strategies, you need to learn them thoroughly before trading. When learning, do more review, and then use a small amount of money. It's trial and error.
When it comes to trading, many people recommend simulated trading, but I feel that simulated trading may not stimulate my psychology, so I use a small amount of money to try that strategy or indicator. For example, play with 100U and open 2U each time. If you test it repeatedly in this way, you won't feel bad if you lose.
Also, don’t pick up the sesame and lose the watermelon. Every time you learn a certain indicator or strategy, you must learn it all, take time to think about it, and then learn the next one. Don’t use regular funds to operate when you only know a little bit about it. It is very dangerous. If you encounter losses, you may feel that this strategy and indicators are useless, and then give up this strategy.
After several attempts, I will also have some review data. If the winning rate is good, I will use it for actual combat. In actual combat, the funds are larger, and the psychological fluctuations will also increase. Therefore, when facing losses, you must adjust your emotions, recall the practice methods during previous tests, be firm in each transaction, and increase yourself. Be confident and believe in yourself. Backtesting data is very boring and requires a long period of accumulation.
4. Review failed transactions
Transactions at each stage need to be reviewed, especially those with losses, to find the problems and avoid mistakes next time. At the same time, you must learn more, not just about trading, but also read some other books, novels, etc. etc., just to distract and don't need to spend too much time on the trading panel. Learning a little bit every day, no matter what you learn or watch, is meaningful. Trading is a step-by-step process that requires a certain amount of time and energy to be achieved.
5. Summary
The bear market is a time when you can completely settle yourself. If you review the bull market, prepare for the bear market. Wait for the arrival of the next bull market. Don't waste every moment of the bear market.
In financial markets, don't worship anyone.
Every year, every month, every day, we hear a lot of wealth myths, such as sbf, how many times the genius trader has doubled this year. He lives diligently and frugally and only drives a shabby car. He gets so crazy that he ends up gambling all his money.
99% of the myths in the financial market are 99% luck. No one here deserves your worship, including me. I may just be a scumbag who sells options and cheats money and sex behind the scenes.
When you come to the secondary market, the first lesson is to learn to stand on your own two feet, and don't always think about looking for crutches.
The most important thing in investing is the experience of mentality. Only when your mentality is stable can your emotions be stable. Only when your emotions are stable can you make more rational judgments and decisions, instead of letting your judgments and decisions follow your emotions.
Easier said than done, let’s work together!