At different stages of life, life experiences and insights will have a great impact on our thinking.
The same is true in the speculative market. From the time I first entered this market to the first, second, and third years, I had different feelings in my heart every year, and my understanding and experience of speculative trading increased. Only by constantly thinking about and summarizing the market can I gain something in the past few years.
Today I would like to share with you some of my experiences in the speculative market for your reference.
Success is equal to small losses plus large and small profits accumulated many times.
It is very simple to avoid big losses. Survival is the first principle. When there is a danger of hindering this principle, abandon all other principles.
The art of trading is to defend the invincible position and attack the enemy that can be defeated.
Many people have very good results in trading during simulation, and can even double their profits within a few weeks, but once they start real trading, they often lose money. At this time, their most common behavior is to continue to study the methods of technical analysis, constantly trying to improve their success rate, hoping to make money in this way. In fact, this approach is a detour and unnecessary. Because usually, technical analysis only accounts for about 20% of the entire trading level, and its importance is not great. Many experts have a low success rate, but they can continue to make money. If you have very good results in trading during simulation, it means that your technology is very good, and you don’t need to study and improve it. You should spend your energy on other aspects, such as fund management, adding positions, grasping long-term trends, etc. You must stick to the good cards in your hand and reduce the bad cards in your hand. If you can’t stick to the good cards in your hand, how can you make up for the losses caused by the bad cards. There are many very good traders who finally spit out all the money they earned. This is because they are unwilling to stop trading when they lose money. When I lose money, I will say to myself: You can’t continue trading, wait for a clearer market. When you get a good hand, you must be patient and hold on to it, otherwise you will not be able to make up for the money you lost when you got a bad hand. The most common mistake many traders make is that they trade too frequently. They do not carefully choose the right time to trade. When they see market fluctuations, they want to enter the market to trade, which is tantamount to forcing themselves to trade, rather than taking the initiative and patiently waiting for the right trading opportunity. The reason why we can make a profit is that we have done a lot of work patiently before entering the market. Once many people make a profit, they will take trading lightly and start to trade frequently. The next few losses will make them unable to cope with it, resulting in huge losses, and even losing their original capital.
Whenever I enter a trade, I always set a stop loss point in advance. This is the only way I can sleep peacefully. I always avoid setting a stop loss point at a price that the market may easily reach. If you analyze it correctly, the market will never retrace to the stop loss price. If the market reaches the stop loss point, it means that the transaction has made a mistake.
My worst trade was caused by impulse. According to my trading experience, the most destructive mistake in trading is being overly impulsive. Anyone who makes a trade should follow the established trading signals and never change the trading strategy hastily because of impulse. Therefore, not being impulsive is the first thing to do in risk control.
I have been trading for more than 10 years. If I hadn't learned to stay calm, I would have been driven crazy by the ups and downs of my trading career. Traders are like boxers. The market can hit you hard at any time. You must stay calm. When you lose money, it means the situation is not in your favor. Don't be anxious. Take your time. You must minimize the loss and protect your capital as much as possible. When you suffer a big loss, you
Your mood will definitely be greatly affected. You must reduce your operations and consider the next transaction after a period of time.
Why can I achieve such a high profit rate? It is because I am afraid of the treacherous and changeable market. I found that successful traders are usually people who fear the market. The fear of market trading makes me choose the time to enter the market carefully. Most people will not wait until the market is clear before entering the market. They always enter the forest in the dark, and I always wait until dawn before entering. I will not predict the direction of the market before it starts. I always let the market change tell me the direction of the market change. Choose and wait for a foolproof opportunity to launch an attack, otherwise I will have to give up. This is my most important trading principle.
Don't be carried away by the joy of making profits. You should know that the most difficult thing in the world is how to make continuous profits. Once you make money, you will want to continue to make more money. In this way, you will forget the risks, and you will not doubt the correctness of your established trading principles. This is the reason for self-destruction. Therefore, you must always be cautious. You must be very cautious when you lose money, and even more cautious when you make money.
Trading strategies must be flexible to respond to market changes in order to demonstrate your highly cautious approach. The most common mistake most traders make is that their trading strategies are always the same. They often say, "Damn it, how come the market is completely different from what I thought?" Why should it be the same? Isn't life always full of unknowns? When your important stop loss point is broken by the market, it is very likely that you will encounter a volatile market or a change in trend. How can you continue to operate in this trend at this time? Therefore, you must be very cautious and wait for things to become clearer, rather than continuing to operate rashly. Before entering the market, calm down and think more: think about how much professional skills you have to support yourself in the market,
Think about whether your mentality can withstand the ups and downs of the storm.
Think about whether the limited funds in your pocket can cope with the unlimited opportunities and losses.
There are a lot of nautical charts on every shipwreck on the seabed.
The most important factor for successful trading does not lie in which set of rules you use, but in your self-discipline.
Timing is everything.
Life is not just a battle of strategy, but also, to some extent, a competition of time and life.
If Buffett lives another 10 years and makes even a 5% profit every year, the total growth of his wealth will be enough to make him the best in the world.
Beware of Overtrading
The speculative market is a free market that can be traded at any time. In any period of time, there is always a market in the world that is open, and there are dozens of speculative products that have trading opportunities for profit in different time periods. Many traders have developed a habit of watching the market all the time. This habit makes traders feel the urge to trade in the process of watching the market, and thus enter the market to trade, sometimes even several times a day, and unknowingly their positions are getting bigger and bigger until the number of positions reaches a dangerous level.
Excessive trading will not only increase your trading costs, but also make you lost in the self-dilemma of trading for the sake of trading.
Grasp the market trend and trade accurately
There are many opportunities to make profits in speculative market transactions, but not every trading opportunity is worth grasping and pursuing, because funds and personal energy are always limited, and we need to make the most of funds and energy. This requires you to enter the market when a big market appears. The profit from one transaction should be equal to the total profit from several small transactions. This can save energy and maximize profits.
Watch for price breakout opportunities
A price breakthrough in the market, especially a breakthrough at a key point, is an important profit opportunity in the market. When market prices are in a long-term consolidation state, once an upward or downward breakthrough occurs with the cooperation of trading volume, it is a good time to establish a new position.
Develop trading plans and risk control strategies
Speculative trading, under the influence of leverage, must be accompanied by trading risks. These risks may cause us fatal harm under the influence of leverage. Therefore, before trading, we must formulate various preventive measures for emergencies, such as how to set stop loss, and the implementation of increasing and reducing positions are all crucial.
Summarize your trading mistakes
Every time you make a mistake in a transaction, you should record it in detail, investigate the causes and related factors, and check and examine yourself regularly to see if you have made the same mistake again. In this way, you can make faster progress.
If you are still feeling lost and don’t know where to start in this market, please comment 333 and get on board!
