Preface:
Welcome to Uncle Cat's Coin Talk. This article is for beginners. Many beginners are prone to chasing ups and downs because of their shallow knowledge and low awareness of the market. In fact, in trading, not only beginners, but even we, the old traders, will be mobilized by certain FOMO emotions in the market to chase ups and downs. Therefore, today's article is a trading rule for beginners. I can't say how much money you can make, but at least you can lose less. If you old leeks feel that there is something wrong, please be gentle, otherwise I may "talk back"!
When it comes to trading, let's talk about mentality first, and then talk about strategy. In fact, when a person does trading, mentality is very important, especially in the process of learning. Without a good mentality, it is easy to collapse yourself and make yourself suffer serious losses. Chasing up and selling down is because of the influence of mentality and losing more calm judgment. Looking back, I think that I may not have done this in many places. But there is no regret medicine in the world. All you can do is face your own failure.
Mindset
When it comes to mentality, what I have always said is to maintain a respectful attitude towards the market, maintain fear, and never be confident. No one in the venture capital market is an ever-victorious general, so failure is normal. If you have been smooth sailing, I hope you have noticed that victory will only paralyze your nerves and IQ, allowing you to pursue the pleasure of victory without thinking. However, often a mistake is irreparable. The smoother it is, the more you should fear victory, and you should be more cautious next time. When it comes to victory, we have to talk about failure. When facing failure, don't rush to summarize the so-called reasons for your failure, and don't blindly do the opposite. Sometimes it is right to calm yourself down, even for a few days, and adjust to a better state to return to the market. At the same time, don't regret any decision you make in trading afterwards. I often hear many people say that I stopped profit too early, or I stopped loss. If I resisted for a while, I would have made money. But friends, do you know? It is very dangerous when you have this mentality. What you call regret is all about looking at the past. If you have regrets in your heart, in the next transaction, you will not take profit when you should, and you will not stop loss when you should. In the end, you may turn profit into loss, and small loss into big loss. For some wrong decisions, you should learn to sum up experience, analyze objectively and calmly, and don't regret it. But when you face some things, if you think it is right, do it, and don't let your past regrets ruin your current trading.
trade
After talking about mentality, let's talk about actual trading. As a trader, if you have a bad mentality, it may ruin your entire trading life, but if you choose the wrong trading method, no matter how good your mentality is, it will be tortured. In fact, you can see that many people in the market like to chase orders, and many people like to shout orders directly at the current price. Maybe this is a kind of self-confidence, but in my opinion, it is full of uncertainty and insecurity. If you can independently judge the trend, you will learn to choose to place orders according to expectations. For example, the current price of big cake is 25,000, and your recent view is bearish, but if you chase the short directly, you may be tortured by shocks, because the market trend cannot always go unilaterally, and it will not let you buy in and fall, which is unrealistic. There will be shocks and tortures throughout the process, and there are two endings. Either you are stopped at a loss, or you can't hold your mentality and run away. Because you have to consider the behavior of market makers. So the best thing is to go short according to the overall trend, and then judge the point of shock rebound according to the trading volume, and then choose to place orders, and then set up stop profit and stop loss. If you hang up, you will get meat. If you can't hang up, at least you will be safe and will not lose easily. At this point, many people may ask, since you can foresee the high point of the short, why not take advantage of this rebound. First of all, we judge that there will be a rebound, but it is just a judgment, but it does not mean that there will be a rebound. If you go long and the market does not rebound, will you be trapped, will you lose money, and will you lose your principal? If you choose to short at a high point, even if you cannot hang up, you will not lose anything. Don't think I am too conservative, this is how novice trading is. You must first ensure that your principal does not lose too quickly, so that you can have enough space to learn and display.
Risk control awareness
This is what I often call risk control awareness, and this is the core point of this article. In fact, as a newcomer entering the trading market, the first thing to think about is not how much money to make, but how much loss you can bear and how much you can learn. In fact, 99% of newcomers are losing money. Don't say that you lose money. If you are the chosen one, you are also an absolute minority, and you earn money by luck, and there is a great possibility that you will return it by luck. Don't think what I said is unlucky, this is the fact. I have been in the investment market for many years. Not to mention newcomers, old leeks have lost too much. Why do you think you, a newcomer, can make money? Do you really think you are the protagonist in the novel? To do venture capital, you must consider the loss and then learn to trade slowly. You must know that venture capital is also investment. The so-called investment requires understanding the profit cycle, rather than taking a small risk and dreaming of getting rich overnight. Calm down your mentality. When doing any transaction, you must first consider your own risks and whether you can accept it before considering profits. Don't let profits blind your reason. When you make good expectations, even if you lose, you will be relatively calm, and you may be more stable in the next order. The trading market is full of legends and countless opportunities. You have to understand that although you have lost this opportunity, your principal has been saved. You will have another chance to attend the meeting next time, and you will learn a lot during this time. Don't come in blindly, and trade with the dream of getting rich, and then your funds shrink rapidly. Finally, you leave the market because you have no funds. Looking back, you find that you have not learned anything. This is very sad. You paid the tuition but didn't learn anything. The last warning, yes, not a warning, as a newcomer, if you don't think about losing this money, don't enter the market easily. If you can't accept the loss, don't come in. Don't be in debt because of investment, don't borrow money to raise money because you want to turn over, because once you understand this idea, you are already standing in front of failure.
Investing is risky, so be cautious when entering the market. Uncle Cat’s random notes, giving you a little care in the chaos!
