Once upon a time, when we came to the futures market with a strong sense of confidence and a vision of the future, we did so to prove our worth, but also to make a profit in this market, to realize our entrepreneurial dreams. Of course, we first knew that the futures market is a high-risk, high-return market, and even that is why we chose this market. However, after years of high-risk we realized that where the high-return market we originally envisioned was, capital losses were piling up, but the risks were everywhere.
Liu Xu is a client of the company, tens of thousands of funds, personal qualities in my opinion are also much higher than other clients, when most people are still pursuing short-term trading, he is already making long-term investments, and I realize the importance of long-term investments is two years later, he thinks that it is normal to want to get high profits in futures, pay high risks. In this way of thinking, his order size is heavy, once in a vacuum market in Davao, he was not profitable, which made him even more convinced that the heavy market takes high risks, obtaining huge profits.
He had once in '98 a 30 hand blank order, but finally because he could not bear the pressure and in the day's standstill, but after the standstill was 3 falling boards, that kind of remorse believes that everyone can realize, if the second half of the time 15 hands, I'm afraid the result will not be because of the pressure to standstill missed this great opportunity. But this is not the most suffered, because of the weight of the stake, his stop loss is large, even if he adhered to the trend to strictly break these two principles, the high leverage of the futures and technical errors plus a little bad weather still forced him to continue the loss more than ten times, the high risk of this period is high, the money is quickly reduced to only 6 thousand yuan, but he does not realize where the error, but complains about the back of the air, how to do it wrong, the last trade was to use the remaining six thousand hands, he knows, 10 hundred trades in a row, and then the price fell in the opposite direction, and after a few steps, he was forced to go through the next few trades.
So far, all the funds originally invested have been lost, although he insisted that long-term trading was very correct, but only a few times the opportunity was missed due to various reasons, but when he entered the game, it is impossible to have too much stop loss with a large fluctuation in the price combined with the result is a loss, and the heavy stock also played the role of aggravating the loss, and finally did not wait for the big market funds have been lost, although the time of entry is a direct reason for his failure, but the fundamental reason is his high-risk high-return trading ideas, in fact, expecting to get a high return in the middle of the market is a greedy manifestation.
Let me illustrate with numbers, in the case of soya, the company requires a minimum trading volume of 5 hands, according to the popular 5% stop-loss principle, a loss of 1000 yuan, a convenience of 20 points / hand ((including the transaction fee), looking at the market in recent years, even if you capture the market in the long line as a trading method, the profit is 300 points (excluding the code) and this is still in case you operate perfectly correctly, it is clear that this is far from the idea that we expect to get twice the profit in one round of trading, if you want to achieve a profit, you have to raise a few places.
For example, 10 hands, the profit will become 30000, which looks good, then your stop loss is 10%, which means that you will only be allowed to lose less than 10 times, and you have not neglected a bit, stop loss is only 20 points (I believe that the stop loss of most traders is greater than this, so you will be allowed to make fewer mistakes), which will mean that in this high-leverage market, you will pay more losses before you get on a ship, and if you lose 5 consecutive times you will be able to recover 100% of your capital with the remaining profit, and if you stop with 5 consecutive losses, if only one bad luck will appear, it is terrible, heavy trading stock hides a huge risk when it gives you a tempting return, a risk that you simply cannot afford.
If you stick to the stop-loss principle of 5% (or even lower, I'm 3%-4%), stick to long-line trading (I'm a firm believer in long-line trading, and there's also a process of transition from short to long-line trading in the beginning), expand your profits with a pyramid method, supplemented by the right technical analysis (it has to be a proven and effective method, otherwise even if you manage your money for ten dollars, the results will be greatly discounted), the results will be good, although it's not the huge profits that we expect, but if you operate in this way in the long term, your money will grow, after all, our goal is to survive and develop in the long term, to become rich and not to be found, and to pay high risk in the pursuit of high returns in the futures market is just a sign of greed and failure.
In fact, in the end, the futures market itself only provides a good investment tool, the risk of the futures market itself can be completely solved by good money management principles, the greatest risk stems from the greed of the trader, high risk high return is not the face of the futures market, but only the investor's subjective feeling and evaluation of the futures market, the pursuit of high profit is not the most important, the pursuit of low risk trading ideas, restrain the greed in your mind, allow yourself to survive in the market for a long time is the basis of everything.
Just read my technical insight, I have a different opinion. In the real-time operation, how to stop loss is indeed one of the key problems to be solved by technical analysis, you and I have all encountered a situation: obviously I am a smooth operation, but still continuously forced to stop loss, thinking that the process will start again, but after setting a good stop loss follow, the price is followed again, triggered a stop loss, then again, and stopped loss out, I was hesitating, but the price started, understand, the price is not suitable for the field.
I'll give you a few more examples: a is an employee of the company, but he has his own account, is an old trader who entered the market in 94, according to other people, he used to manipulate very badly, broke several accounts. But after I joined the company, I observed that his trading method was much higher than most of the customers in the field, when I first joined the company, he just dropped 10 blank lists in the June 1999 takeover in Davao.
This older brother, after a long time, entered the green bean market without a bit of frustration, and then the miracle appeared, in the green bean last bull market, he insisted on reading more, only losing 2 hands, winning 13 times in a row ((in a wave) the funds finally went up again to 2000, was the best in the company at the time, I have been watching him, analyzing his operating methods, I found his thinking is very different from most customers to set up a loss in the way of entering the field, he is a good believer in the bull market, as long as the trend does not change the price can not fluctuate any more, green bean is very strong, although his method is very profitable in the event that other customers are still forced to make good losses after the trend, his method is very profitable.
However, things didn't end there, people's pessimism started to increase after the green bean boom, he started to empty the order, I don't understand why he had a reason to trade against the market, even after the boom, once wrong, stop loss, again empty, find again wrong, after the second stop loss, more than twenty thousand funds only after two losses, only 4000 yuan after the second stop.
I'm sure you're all familiar with the two golden principles of money management: one is to limit losses to small amounts and maximize profits, which is what we usually call a profit-loss ratio that must be greater than 3/1.
It is obvious that the method of large stop loss is completely contrary to this principle. Besides, who dares to guarantee that the market will not make mistakes in this way. Is it not uncommon to realize that the trend you think has started, but the trend has started again in the opposite direction, and that the situation must have come to a head, such a high leverage rate in the futures market will inevitably cause you to lose badly, and maybe this moment will not change, this is no different from not stopping the loss.
He also believes that stop loss must be a technical stop loss, not a point stop. I believe that stop loss should first meet the requirements of capital management, determine the maximum tolerable loss, then determine the technical entry point and stop loss, determine the size of the stop loss with the technical point, not only will magnify the loss to a dangerous level, but who dares to guarantee that the technical point stop will have a higher probability of success. The first point of stop loss is to limit the loss of any trade, because each entry is only assumed to occur, not necessarily.
My opinion is quite the opposite, that regular stop-losses are very normal. A master speculator once said: "My 95% profit is created by 5% of trades, and most of the trades are loss-making, and I only succeed because I grab very few opportunities for profit and hold on tightly to them". What surprised me most about Schweitzer's analysis of futures trading techniques was the reality chart analysis: a successful trading system will naturally have such a high stop-loss rate that failed trades far outweigh profitable trades and ultimately remain profitable.
I would like to conclude by saying that frequent stop-losses in retail trading are indeed common; but the key to the problem is not the stop-loss itself, but the difficulty of choosing the timing of entry in this highly leveraged and volatile market, which must inevitably lead to frequent stop-losses. But this is a completely technical problem that can be solved entirely by observing its laws of motion, at least I have basically solved it.
I remember when I first entered this market, I was exposed to a lot of technical tools and indicators, I filtered through and selected some tools that I thought were useful at the time, and I realized early on the importance of system trading, using many different indicators and tools to combine with each other, to determine the conditions of entry, stop-loss conditions and exit conditions, so that the entire operation process has rules to be based on, to do the whole process. This is something that makes me feel meaningful now.
To give an example, my general entry conditions are: the cycle shows that there is a market, 14rsi up and down, crossing the 70rsi straight line, and the reference angle line to determine whether the stop has fallen, but also to refer to the holding and trading volume, in short, the whole process is very complex. So what is the actual effect, very unideal, the biggest problem is the interference caused by each other, several indicators contradict each other, there are always some conditions that will not be met, causing entry and exit hesitation, theoretically seemingly perfect trading plan is almost ineffective in the real world, in addition to the choice of the indicator tool itself, there are huge flaws, requiring the various tools to be compatible with an imagined, but actually mutually wrong way of thinking.
This is the last round of the empty market of green beans, the three crashes, old friends must remember, I know the gap, but the cycle I have been relying on did not send any signal, I missed the market. Green beans stopped, I turned my research to soybeans (I had not studied soybeans before), when I applied the summary of the package of solutions in green beans to soybeans, I was just desperate, the so-called effective technology, in green beans is basically a paper soldier, there is no effect, the weight of the paper used to record my indicator tool is the same as scrap paper, consuming a lot of money, pouring all my energy to get such an experience, I can not bear to check.
Suddenly, I was relieved, I seemed to discover the most real side of the market at that moment, the laws that the market was supposed to follow were so simple, and I didn't discover it because I had previously thought that the futures market was a very complex and deep market, so I instinctively thought that the final trading method must be extremely deep and complex.
In fact, the futures market is a market that coexists with randomness and regularity, the regularity of which is so obvious, so simple that you ignore it, while the randomness of its performance is extremely complex, which I just happened to see, and wrongly assumed that this is a completely regular market (ignoring its random side); also there must be a trading method that is not mastered by most people, and I have been trying to find this method, and finally I walked into a dead end.
This breakthrough is one of the most significant breakthroughs in my technical thinking, and the methods I have been searching for for almost a year have always been in front of my eyes, clearly in front of me. To deal with this market, which was originally extremely complex, we will only analyze more and more confusingly with complex trading thinking, find the simple side of this market, the regular side, and then grasp it with simple technical means, follow the main trends of the market, do not make any subjective guesses before the final solution, this market does not need any highly sophisticated technical analysis means, the key is whether you know the market correctly, find the laws of this market, if you understand the market laws correctly, then all trading thoughts and technical analysis methods based on this misunderstanding are ineffective, I am not guilty of this mistake.
I'm sure you've all seen the one that moved my cheese grater, and in the last analysis of why in the process of looking for cheese, two clever little dwarfs lose to two simple-minded little mice, he points out that the reason is because the little dwarf will think of simple problems that are complex, some problems that are very simple, and because of their own cleverness, they can not get out of the mud of thought.
We can't avoid our own flaws of self-righteous cleverness, we can't treat every problem as simple as a mouse, but we can find our mistakes and deal with them in a simple way just like a mouse. Simple doesn't mean ineffective, complex doesn't mean effective, I didn't succeed with complex analysis, and the ultimate success was simple, no longer simple analytical tools and trading principles, which is the complete opposite of what I thought at the beginning, and it's a little bit incredible. Are you still making the same mistakes as I did, try it from another angle, maybe you'll be surprised.
In this market, whether you should go long or short is probably a more controversial topic. Of course, choosing a short option is the choice of the vast majority of people, and there are very few long-term traders in this market. This article just wanted to give you a reference through some of my thought-shifting process, maybe this is exactly a dead end on the way to your futures trading success, because this issue was my dead end.
In 99 years, green bean had had a very strong multi-head market, when I had just entered the market shortly, due to lack of experience, in the early stages of the bull market, I saw the reversal, fortunately stopped in time, despite the fact that several reversals were made, but the final loss was limited, then I found out that I made a mistake in the reversal trade, began to see more firmly, at this time green bean had gone through four waves of the small nine waves (see later), I did not delay too much, I began to prepare more orders, but due to my technical analysis, the trading system at that time had serious defects (the problem mentioned in the previous article), I saw the bull market but still had a few times, did not follow the numbers, only one or two operations correctly and after a small profit.
After the little nine waves went, the market shook sharply, at this time the increase has been quite large, everyone in the field began to look, I in the principle of sequential trading, still insist on reading more, I was the only one who read more in the field at that time, the most vicious last wave of the big five waves began, although I decided to watch, but due to the technical cycle counted a wrong day and tearful watching the market rise, until I understand, the high price is frightening, the final increase is scary, the eye to see the profit of the hand slipped in front of my eyes.
I found out that if I stick to the sequence of trades from the beginning, if I buy not short, but put it after winning, even if I only do it once, the profit will be enough to offset all losses, and there will be a lot of excess profit. And I, in doubt, fear, hesitation, do not do the opposite or lose the opportunity, it is easy to catch once, but still get out of the game, the results of frequent operations are not as good as the results of letting it develop itself after one time, even if only one out of ten times.
A few years later, my trading mindset and technical analysis levels are at an all-time low, but I'm still in the swing, my trading profits are still not making much progress, and I know very well that something must be wrong.
One day I read an article that emphasized the importance of long-line trading, and I thought it was reasonable to start reflecting on my previous trading: I was used to the swing period, where a successful trade can win 50-80 points (the bear market is larger than the bull market, which is the actual profit after the turn), my stop loss is usually within 20 points, and for a successful trade sometimes two or three stops are paid.
Thus, the number of times I lose in the operation is much greater than the profit, although I have been able to successfully seize the chance of winning, the result is only a draw, sometimes bad luck also loses, and there is also a problem that I often lose opportunities for various reasons, which is also a great waste of money. In general, even if I encounter a good market, it is only a few interrupted bites, and after eliminating losses, there are few left.
I finally understood that long-term trading was not my end, to be a net-profit trader, I had to get out of this step, and the biggest obstacle in front of me was that this idea posed a great challenge to patience, about which I was very unsure, followed by the technical first round of feedback after entering the field I don't know how to deal with, but these bumps were also obtained, otherwise all the efforts were wasted, the dream really became a white forever dream. The solution of these problems was not as difficult as I imagined, through constant psychological suggestion and training to modify the rules of trading, I finally succeeded. I finally opened the last door, understanding all the conditions needed for the success of this market.
In fact, I believe that there are many people in this market who rely on short-term success, and I don't deny that, but most people rely on short-term operations for nothing, because most of us are still ordinary people, even if you think you are better than others, please do not forget that everyone who enters this market has the same confidence as you, otherwise they would not choose futures. Of course, I may be a little arbitrary because of my own experience, your short-term skills may be much higher than mine, then you make this whole article a better story.
A long time ago, I made a hypothesis, and my search was based on this hypothesis: that the process of finding a successful trading method is actually a process of constantly reflecting on one's behavior and constantly improving one's mind, in the process, many difficulties need to be overcome, many laws need to be discovered, many truths need to be understood, and when everything is done, it is successful, and any link that goes wrong will lead to failure. Of course, everyone understands how difficult it is, otherwise the futures market would not have so much emotion.
The ultimate solution is not how complex it is, and it can be summed up in one sentence: analyze yourself, analyze the market, find the problem, solve the problem, and that's it. Of course, there is a key point that everyone must do, and that is to know how to work together.
Recently, I read a post by a prospective client, who said that his 150,000 funds were still losing a lot despite sticking to a strict stop loss, and I felt that the doubts about the stop loss were revealed between the words of this article, which in fact has been explained very well: stop loss is necessary for a successful trade but not a precondition.
After I got into the market for a while, my funds began to shrink, and the state of losing and losing trades allowed me to try out the indestructible nature of futures. The market always seemed to be against me, and I felt very confused. In one conversation, I asked a cashier who started working when the company was founded: "Have you ever seen someone leave this market with a profit?"
Am I destined to be eliminated? Why? Is this the outcome that I've been striving for? Have I made the wrong choice? Is there a solution that the market doesn't exist or is there a solution that I'm not capable of? No, I'm convinced that the market does exist, so what's wrong with us, the smart, good, smart, smart, smart, smart, smart, smart, smart, smart, smart, smart, smart, smart, smart, smart?
After years of painstaking pursuit, with the establishment of a long-line trading system, both the idea and the trading method have taken a qualitative leap, all the feelings of failure have been swept away, and all the problems are so clear when we go back to answer the original questions.
The common characteristic of most retailers is that the money goes in and out of the market (not including brokers, of course, who are characterized by frequently losing money in a transaction and treating other people's money irresponsibly, hopefully I will not hurt those who have a conscience), and the reason behind these phenomena is the lack of proper understanding of the market. The establishment of a correct trading concept and trading strategy is based on two foundations, one is the correct understanding of the market and the second is the correct understanding of human characteristics, either of these two basic conditions is problematic and the transaction cannot be correct.
In my own experience, it is necessary to have a correct understanding of the market before the transition to a correct understanding of human characteristics, and the trading system is built on these two foundations. Unfortunately, all the people I met, including myself at that time, who only stayed at the initial stage, could not talk about a correct understanding of the market at all, and failure became inevitable, according to the laws of this market, the vast majority of people are really destined not to recognize these two points, and are destined to be eliminated, it is very cruel.
The process of understanding the market we face is very similar to the process of understanding life as we grow up. I remember clearly: I felt I had grown up by the third grade, I had understood the world of adults and nothing more; by the age of 18, I thought I was an adult, and when I left school I found out that I was so ignorant of society, so helpless in society, I realized that I was only in the first grade of this university, I realized that I was only in my first year of society, I felt very childish when I was 15 years old, I felt very childish when I was 18 years old, and I felt very childish when I was 15 years old, and now I am very mature.
It is not the case that everyone starts their life journey the same way as when they enter the market, everyone is at different ages, but unlike life, the vast majority of people break down in the middle, only a few eventually move towards the top.
While the people who are looking around, in contrast to the many articles that say that people are not good at stopping damage, most of the comrades around can stick to strict stopping damage, although the way of stopping damage and the basis varies, but there is no problem in stopping damage, everyone understands the importance of stopping damage, especially some long-time friends.
However, most retailers make mistakes that are not just that, the most typical mistake is based on the fundamentals, holdings and volume of transactions, holdings ranking or harmful technical indicators, even the so-called market sentiment, etc. Various ways of making subjective judgments about the market, but ignoring the most important price, and make this the basis for the entry and exit, the whole operation process feels good, in fact, the gaps are out, even the basic trend trading is not good, often lost in the market.
A small number of successful ones end up losing money due to poor financial management or other reasons. The lack of perfect trading rules or the lack of strict adherence to trading rules is also one of the most common causes of failure.
To sum up, the successful trading process is a whole, and the truth about the unbreakable truth of stopping losses, long lines, and ups and downs is only part of the whole, or even the basis for establishing the right trading technique, or the phrase, these conditions are only necessary conditions for successful trading. Just doing a strict stop loss and money management without a complete technology can only guarantee you a slow bleeding death, and cannot bring success.
For myself, I am not smarter than anyone, nor do I have any so-called talents, and I think what makes me different from everyone around me is simply that I strictly follow what many consider to be clichéd rules of engagement, and that's the only difference.
Futures have always been an enigma in my heart, and I believe that everyone is like me, after many years of obsessive searching and finally opening this knot, the truth is so simple, but the process of pursuit is so difficult, every time I see these friends who have been lost in the futures market like me in the forums, there will be an unstoppable impulse, even if this article is a small one, I hope to give some inspiration and encouragement to my comrades.
These days, I have seen the difference between theatre and singing theatre, and I feel that what everyone says is very reasonable, I have always wanted to write this article, but unfortunately I can't stop thinking about it, today I will see if this article can solve these doubts in your mind.
Let me tell you again, I read many books before going to market, and although I still know only half of the technology and the market, I learned from my predecessors two basic principles of survival: strict stop-loss and smooth trade.
Three months have passed, and I look back at what I did, stop loss, but the good deal is a mess. At first I still remembered the good deal, the first few bills were a good deal, but after that heavy loss, I was as stubborn as a devil thinking that the market will fall, the principle of good deal was already thrown behind my head, all the analytical results were inverted thinking that the big fall must still be behind me, my continuous release, and the continuous stop loss, and after the loss, I finally found out that I was in a round of obviously rising market, and I suddenly remembered three months ago, I had to tell myself once and again:
Haha, I've been confused by the market and my own willingness to face up to it. Then the problem is clear, and you must remember again the bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bullish bull
There is also the problem of stopping losses. For a long time after entering the market, I only knew the stop loss, but did not know that the stop loss must be a definite point, so I had several times when I found out that I could be wrong, but due to hesitation, I expanded a small loss that should have been, paying a meaningless loss.
The problem is clear, it is easy to solve, when each entry is set to stop loss point, no matter how this stop is set, but it must be a clear point, the point is to leave the field, do not think about whether or not after I get out the market will continue, let me make a mistake stop loss point.
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The emotional characteristics of human beings are the enemy of trading, and the establishment and strict adherence to the rules is precisely the best solution. In contrast to the market forecasting that analysts often do, excellent traders only follow the rules and never make any market forecasts. An excellent trader will not be an excellent analyst, and an excellent analyst will not be an excellent trader either.
Most retail traders are in between analysts and excellent traders, and the rules of operation are there, but at the same time they are full of a lot of subjective analysis and unreasonable speculation and speculation about the direction of the so-called dominant trend, and the most obvious subjective characteristics of the speculative speculation are the main root cause of the countervailing operations, and the bad operating habits of the speculators are not the result of the speculative speculation. The result of the wrong method of operation is inevitably a sustained loss, and for most retailers, the funds are untenable, the war is over, the losses are over, and the final loss of confidence can be as little as possible.
In order to understand how easy it is to understand, it is clear that almost everyone, even a beginner, knows some of the correct trading concepts: smoothly, light positions, long line profits are better than short lines, etc., but the exact opposite of these correct perceptions is that in practice, counter-trends, heavy positions, frequent short line operations are so common, if only you are a know-it-all and can not go to the side, then you think it is right but still do it backwards, have the right understanding, what is the result, is it not the same?
The rule, and still the rule, is to evolve all one's knowledge of market characteristics into objective rules (rather than to analyze forecasts) and strictly enforce them, which can completely solve this elusive problem.
A friend asked me how to increase profits, and I said the same thing. Stopping losses and stopping losses are difficult. It's hard to have that complex mindset of fear of falling back after winning, I hope everyone has this experience. My long-term turnaround experience is difficult not because of technical solutions, but because of overcoming psychological barriers, which are caused by one's own natural personality defects, but once one crosses psychological barriers, it's easy to solve technically, still setting rules, a simple tracking loss rule completely solves the problem, haha, some seemingly difficult problems are not difficult to solve if the method is correct.
The topic of rules and analysis is rarely discussed, but it is the most important criterion that distinguishes the average investor from the best traders, and systematic trading is the ultimate trading idea of operating in a completely regulated, objectified, scientific way, without any mystery.
Two points need to be emphasized: first, the rules must be made in accordance with objective reality, I began to understand the use of rules to restrict entry three months after entering the market, unfortunately, I used a technical method that has serious flaws in itself, and failure is inevitable. The establishment of correct trading rules based on objective reality is a very key point.
In fact, I personally had abandoned most of the predictive and analytical techniques by the beginning of the semester, fully realized and started applying some of the important points of the Adam's theory in trading (abandoning all subjective analysis, in turn), and after two months I understood the principle of simplifying trading, abandoning all the glitzy and untrue tools and focusing all my attention on the study of a single price feature, which also marked the end of my introductory stage and the beginning of the longer promotion phase.
But it was only after the system had been established that I came to the conclusion that it was the use of rules that led me to the end along the right path, and the habit of regularizing and strictly enforcing all my knowledge of the laws of the market played the most crucial role. Many experiences and lessons can only be summarized later to find out what is right and what is wrong, when it is impossible to judge, that is the reality.
This article is the last in the series that I feel, compared to the previous ones, contains the largest amount of gold, the most difficult to understand, the meaning of the article is easy to understand, but deep understanding is not possible for most people, it is really easy to understand and has been applied to the trade. Friends in the trade may already be systematic traders.
I have some experience with the idea that it is difficult to overcome oneself, and see if it has any meaning for everyone. Overcoming oneself is a popular idea in the stock market, but I don't think I've ever encountered this problem.
My method of operation has always been a process of determining the trading mindset, establishing trading rules and strictly following the rules of entry and exit, in three steps.
I'll give you an example, I'm against reverse trading, that's part of my trading thinking. Then my trading rules will define a blank standard, the chart is blank, I'll just do blank lists, and vice versa, that's the rule-making part. If I have rules, I'll strictly follow the rules, even if I feel my entry is going to be a mistake, I'll firmly follow the rules, even if my prediction is right, I don't care, I'll just pay a little bit of the expected loss.
But if you set up trading rules and don't follow them, then even if you have a 100% perfect trading idea, it's definitely a big problem. If you can't beat yourself up on this issue, you'd better consider quitting the market. Mistakes can happen at any point, but there can never be a hint of ambiguity on this issue, it's fatal.
Your trading mindset is also key in this process, and if your trading mindset acts as a guiding mindset, if it is wrong, then the rules made accordingly are also wrong, and then strictly following the rules is meaningless. So your trading mindset has to be right first (my four articles focus on how to determine the right mindset), and then making the rules is not a problem.
Then I conclude that your thoughts or your rules will directly control your trading process. Then there is no such thing as overcoming the self. If the problem of overcoming the self exists, it exists only in the process of developing your trading thoughts. If you find that an idea is right, and you find yourself having a hard time doing it, then you have to try to overcome yourself, and if you can't, then success is always with you.
So the bottom line is this: the process of trading is just going in and out according to established rules, it's an easy process, it doesn't require you to beat yourself, if there's a mistake, then you check your thoughts and rules, find a mistake, change your mind, modify the rules, try again, it's simple.
I am glad that these most basic trading concepts, even when we were not yet on the market, can be taken into account by most of our friends, these concepts are nothing new, they are a summary of the lessons learned by our predecessors, for everyone to see an ordinary retailer around you talking about these basic concepts, this should feel a little better than being hard to understand the precepts of the predecessors)
For me, in summing up my personal experience and lessons, and in summing up a process of my own transformation from a know-it-all to a market-driven marketer, I have always accepted these precepts mechanically, and unconsciously have said from my mouth that I know that these precepts are deeply rooted in my basic understanding of the market.
I remember that after I first deeply understood the theory of Zhao Adam's succession, I whispered in my heart, finally finding the secret to victory. But I happened to see someone talking about Zhao Adam's succession in the journal of the company, my heart suddenly cooled.
In fact, the real difficulty is not in the market, if the market is interpreted objectively enough, with an ordinary person's IQ, it is quite easy to find the laws of the market and formulate the corresponding countermeasures. Unfortunately, the problem is in the market, the human fear, greed, a ton of wishful thinking, etc.
The inability to gamble lightly reflects the greedy side of human nature, the inability to stop the damage reflects the fear of failure and the existence of luck psychology in human nature, the inability to operate long-term reflects the lack of patience and the greedy attempt to seize all the fluctuations of the market, the inability to operate smoothly reflects the strong subjective characteristics of human will.
Most people ignore their own mistakes and attribute their failures to their own bad luck. Most people, afraid to admit their mediocrity, unwilling to touch their own pain, with these lies come from self-deception. The final outcome is completely natural. Lack of self-awareness, lack of self-reflective awareness is also a common disease of most people, and the ability to reflect on oneself can also determine the degree of their knowledge of the truth.
In fact, many times you do not know what is right and what is wrong and do not do it, and more importantly, your subconscious mind has an instinctive strong resistance to the right approach to yoga, which requires deep self-analysis and reflection. And this self-analysis is often bloody: when you have to admit that you are not good, when you have to admit that you are a mediocre person, when you have to admit that your actions are no different from the clumsy performance of the casual around you, the entire foundation of self-confidence collapses, and the feeling of heartbreak is unforgettable.
However, the benefit of this heartache is that I have thoroughly recognized my own original face, no longer holding on to the idea that I am better than others, so I will succeed in such a childish idea, no longer thinking that I can beat the market, but turn to the market to move at will, and go smoothly. The Adam's theory is the basis of all my ideas and operations, and also the most important turning point in my knowledge of the market in the exploration stage, the essence of everything is only four words: the market is turned into a mirror, in fact, I have discovered the classics of the classical theory in a very large circle, unfortunately almost everyone, including me, has been ignored, but is looking for a trick to overcome the mirror. But this seems to be a helpless phenomenon, and only after the market is truly deeply understood can the classics be understood.
Recently I have started to study some emerging theories such as chaos, fragmentation, and the Leverage Operating Method of Zhou Zhou, and I find it interesting that the striking similarity to my own specific operating technique makes it easy to understand the author's intentions.
Although the methods used are different, and many specialized terms also hinder the patience to further understand their methods, but the problem to be solved and the idea of solving are the same, it is clear that Zhao Zhou's operating technique is based on the Daoist theory, the final solution of any market must be simple, at least its core idea must be simplified, some successful people always find a market solution and then fine-tune, complicate, extend and theorize it, and then pack it up, leaving the later ones in the fog, the feeling seems to be very deep, the artificial created understanding distance, on this point, the best thing to do is to take the easy way.
My feeling is that the successful method of operation, although the surface is very different, but the substance is very similar, but I do not like this kind of detailed and theoretical packaging, a few words can explain the problem but to explain it with a book and many idiosyncratic terms, of course there are many reasons. I have a guess that when someone first won with the filter wave theory, his subject idea must have been briefly reliable, but later on the continuous theorizing and refinement of it makes what we see now completely different from what it was originally intended to be, so that it can only be used to explain the effect of the filter wave and has no practical value.
Zhao Zhou's operational ideas are easily understood because my personal operational techniques are also based on Daoism, and I can easily understand fractions because I am using similar fractional techniques to indicate the price trajectory, so I have understood at a glance that these techniques are not fancy and unrealistic techniques, including chaotic shark operations, although new theoretical nouns appear in abundance, but their technical principles are not detached from the traditional classical theory, there is nothing new under the sun.
Many friends are blindly following this trend and abandoning the basic understanding of the market, in fact, if they do not understand deeply the core problems to be solved by the Forex trading system or these emerging trading theories, the lack of basic market knowledge, the consequences are still undeniable failure. This is why I value the basic market concept very much. Any attempt to bypass this loop and look for a successful gold key is unrealistic.
In fact, I am repeatedly stressing the words "objective", "practical" and "regular", but I also understand that I can only really understand the meaning of the expression if I really understand the meaning of these words, which is the difference between identification and resonance. After all, in the end, it is up to me, these articles are too rough compared to the summary of the lessons learned by the predecessors, and all I can do is bring out my own ideas, which can serve as clear thinking and inspirational tips for some fortunate friends, and that is all.
But whoever feels the expiration of the market will always have a sense of melancholy, no one can be exempt, the article also instinctively reveals this feeling, the market is like the life of the shrinkage, great sadness ends in it. Just as the so-called day of the dead is a good and old, the human path is the friend who is stuck in the market, whether he is finally with the confidence of success or the pain of failure to leave the market, there is a little no doubt: choosing the market is one of the most unrepentant choice in life, life has a period of the market such an experience is wonderful.
Suddenly, I was relieved, and I seemed to discover the most real side of the market at that moment, where the rules were so simple: K-line is the car, straight line is the road!
With this seven-page booklet, I would like to share with each and every one of you who has ever worked in this market, every single retail investor who is going through a tough time.
ChaceThank you for writing in pencil.