It's not the technology that's complicated, it's the human mind!

Author: The Little Dream, Created: 2017-11-04 09:29:58, Updated: 2017-11-04 09:38:22

It's not the technology that's complicated, it's the human mind!

The aim is to keep the simplicity in line with the market, and the complexity is not always superior. The most effective, and often the simplest, are the ones that make the most sense. It's not the technology that's complicated, it's the human mind! In the jungle, there are no human laws, only the jungle's own laws.

  • Experience

    He entered the futures market in 1994 by chance, and in the seven years until 2001 he suffered huge losses of more than $4 million, several drops, and suffered an unimaginable journey of the mind of ordinary people... The details of the process are not explained here, I told the newcomer with almost 14 years of trading experience that the stock futures speculative industry is not suitable for most people, because it is only a few people who make money in the market, invaded it for a long time, through ritual and torture, every day hoping that tomorrow will be better, tomorrow will make money, but always disappointed, so there is a first generation, second generation, and so on.

    The trading ability must be matched to the trading system. Don't try to get a three-year-old to fly a spaceship, let alone think that the child and the spaceship are useless because the three-year-old is not good at it. In fact, most investors have the trading ability of a three-year-old in front of the market, but their desire to make a profit is the same as that of an adult, which leads to a low level of trading. When you recommend a mature and effective trading system to him, he is excited and happy to accept it, as a three-year-old recommends a spaceship.

  • The cycle of evolution;

    A triangular arrangement of a pipe with a raised or lowered channel and a vibrating pipe with a diffusion nozzle;

    The four simple price forms most people won't use, the market is not complicated, it's the people's hearts. The ability to use a trading system is expressed in two ways:

    • 1 How to get through the difficult times of the system

    • 2 How to make the most of the system ‖

      Do not assume that a profitable trading system guarantees you a success on every trade! Any profit is made up of a small profit and a large loss, any trading system has weaknesses, and losses are inevitable. For trend tracking systems, it does not require the number of times profits are greater than the number of times losses. For trend tracking systems, it only requires constantly using small stops to look for large profit opportunities, such systems require the user to be prepared to accept small losses; and for short-line trading systems, it is more focused on the pursuit of profit times greater than the number of times losses, it seeks accuracy.

      The essence of system trading is to deal with what is happening, not with what will happen in the future; it is to trade based on trading signals, not predicting markets. Too many people spend too much time dealing with what will happen in the future, but are unaware of what is happening!

      When the system is in a period of losses, do not easily think that the system needs to be changed or replaced, losses are a normal phenomenon, must be accepted, at this time should tell yourself how to improve the ability to deal with difficulties and patience; in difficult times to abandon the system, the nightmare of losses will always follow you, profits will always be only a handshake and smile to you in the distance. And in the period of gains of the system, do not be too smart, think that you can use your own trading ability to improve the efficiency of the system, at this time, compliance with discipline wins everything!

      For system traders, the market's falling is no longer important, but the execution of the trading signal. This is precisely the most difficult to do, because the trading signal of the system will often contradict your view of the market, and many trading opportunities are lost in the hesitation of investors, which is also the key to the difference in the results of their trades using the same trading system. System trading has shifted from the judgment of falling to the execution of trading discipline, and investors are often in the judgment of the market falling, which inevitably affects the effective use of the trading system.

      We need not only to have a clear strict trading system, but also to have a clear strict trading principles, and on this basis, have a clear strict trading strategy. The trading principles are all the same, but the trading strategies are different, the trading principles are to be derived from the trading system, the intermediary needs to be the coupling of the trading strategy. As long as you have a clear strict trading strategy, the effects of the trading system will be different. I have divided the market into two aspects, one is the state, one is the direction, that is, one is the position of the price structure of the K line in the time period of the trend line, and one is in the trend line.

      Some people pursue day trading, some people pursue wavelength operations, some people pursue long-term opportunities; some people are impatient, some people are temperate, these are all factors that you need to consider when choosing a trading system, and these factors also lead to the inevitable individualization of the trading system.

      Some people ask me to refer them to a system he bought elsewhere, saying that the efficiency is often unsatisfactory, I just tell him that the most important thing is whether the system is suitable for the market and you are the most important, not the probability of success of the system. Since the trading system that can be sold is sure to undergo data testing, you will not be able to find a problem. The key question is whether the operation of the system is in line with your pursuit (long-line, short-line style), whether you can afford the loss of the system, whether the profitability of the system matches your trading ability, etc. Only personalized trading systems are good trading systems in themselves, not simple successful trading systems with high probability.

      Trading systems must be personalized to have practical value, and the ability of a trading system without personalized processing to be profitable is only theoretical. The investor's own pursuits, personality, trading variety and trading strategy are the most important factors in the effective selection and use of the trading system, not the system itself. At this time, making money is a commonplace for you, like a veteran driver who drives a red light and stops, goes green. Trading is completely unconscious to you.

  • Waiting for the transaction:

    For investors who are gambling in the futures ocean, waiting means a principle, a avenue, a confidence. In my view, waiting is at least sober. Resting waiting is a positive defensive state. Many investors do not understand its intrinsic meaning, and the reason we do nothing is because "not trading" is perhaps the best deal, it is a form of renunciation, a form of submission and respect for the objective market.

    We need to understand: the market is the protagonist in the market changes, and the performance of investors is only a small supporting role. Leave enough time and space for the market, rather than busy yourself; wait for the market to give a clear direction, otherwise the busy end will be nothing. The key to the question is: why people are always busy is the result of desire.

    The reason for not doing so is for the sake of security, for the sake of serving a big strategic plan, not for the sake of immediate small profits or blindly following the lure of profit. The famous Wall Street investor (speculator) Master Soros once said that rest is actually part of the job, only away from the market, to see the market more clearly.

  • The final words:

    The mechanised trading system should act as a beacon for our thoughts and a guide to our actions. The mechanised trading system means constraints, which we must accept and make a part of our investment life, a natural habit. The road to wealth is a hidden road, as one passage in the Bible says: "The gate to perdition is broad and the road to it is narrow, and few there be that find it".

Translated from the Zen Library


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wangwlbIn the same way, I also use 15 minutes, 60 minutes, day and week lines to judge the market in A-shares: Look at the circle line, do the daily line, 15 and 60 as the instructions for entering and leaving the game, and do not think that the harmony mentioned in the text is consistent, of course, when compared to the author, his own actual operation is still very poor, still needs to be refined.