I was chatting with a friend yesterday
I talked about his personal experience and found it very helpful, so I share it with you.
Here is his own statement:
When I was 18, I followed my relatives and was trained to be a (trader. What a high-sounding and luxurious name.) The next year, I went solo. I got signals from the feedback of making money all the time that I could do it. When I made money, I boldly spent it on buying this and that. I was not afraid of losing money, because I felt that I could earn it back. Until I lost all my savings and all my loans. I beat myself up repeatedly and started thinking. As long as I think, it will work. Sure enough, I broke through. At least at that time, I felt that I was okay again. Go to work and make money, then go into the market!
The first year was a loss.
In the second year, I was still losing money while working.
In the third year, I was still losing money while working.
In the fourth year, I was still losing money while borrowing money and working.
I am a person who loves to think. I try all possibilities. I never do simulated trading. I think simulated trading is useless. Facts have proved that I was wrong. If I had done simulated trading at that time, it might have been much better. I took the money to do speculation, and after crossing one pit, there was another pit. Looking around, there were pits all over the front. I didn’t know where the end was. I did the 5-minute line for two years. I did the one-hour line for another two years, and tried heavy positions in the middle. Then I tried light positions. Later, I was afraid of heavy positions, and found that light positions would also explode. I started to read books and study. I tried various indicator theories. I have used all indicators. Sometimes I think the indicators are gods. They are extremely awesome. Sometimes I suddenly fail. Suddenly the indicators become invalid.
Well, it’s the 5th year.
100 calls a day for debt collection. I couldn’t pay off my debts. I used all my part-time job money for trading. I lost all my money in trading. I couldn’t afford to buy clothes or eat a good meal. I lost everything in the market. I couldn’t bear it anymore and confessed to my family. I lost 700,000 or 800,000 yuan. My family gave me 500,000 yuan to pay off the loan. At that time, I took out loans to trade. I worked hard when I lost money, and sometimes I grinned and sometimes I scratched my head. At night, I dreamed about making money and blowing up my account. I was awakened in the middle of the night. I challenged data and the Federal Reserve meeting at night. I fell asleep while working. I woke up the next day and saw that 5,000 yuan was blown up. My eyes were like big blood cells. What should I do if everything is blown up? Go to hell. I went to work with big blood cells in my eyes.
Fortunately, hard work pays off and I feel I am doing well again. My friend has been trading with me for a year. We decided to quit and go home to open a studio. We made 70,000 to 80,000 RMB. Most of it was borrowed. After two months, we went bankrupt. I was not willing to give up. I tried all kinds of ways to make money. I continued to trade gold. In hindsight, 60% of my orders were short. As a result, gold rose from 1,100 points to 2,000 points. Fuck it. Later I realized that the wrong direction meant all the money was wasted.
In the 7th year, I made money continuously by short-term trading. In the meantime, I joined someone else’s studio. I don’t know if I was destined to be there. Anyway, wherever I went, it went bankrupt. I made money and paid off my debts. I also lost money and borrowed money. And so on. Anyway, I didn’t fall in love. 80% of my time was spent on foreign exchange. I tried it myself. I tried it with my friends. I tried all the methods that could be used. There is nothing you can think of that I haven’t used. Reading books. All kinds of books, nothing is useless. When I see the 5-minute line, I still can’t help but buy it even if I don’t understand it. I can’t help but buy a large position, even if I don’t have money. I challenge the market in various ways. The cycle is still the short-term cycle.
I gradually discovered that, for a player like me who is a gifted person with an IQ of 135, why can’t I break through? What’s the reason? I have clearly restrained my bad habits. I no longer hold a large position. I no longer enter the market blindly. I no longer challenge the loss to increase my position, I no longer blindly increase my position, and I no longer do data orders. I even learned to rest after making money. Why can’t I make a lot of money? I can only double my money in a short period of time, but why can’t I make a long-term profit on a monthly basis? I can obviously do intraday trading for two consecutive weeks, and the point analysis is not less than 1 US dollar. Why is it? ? ? What’s the problem? ? ?
In the eighth year, I finally achieved the five-minute and one-hour K-line that I had been dreaming about. What remained unchanged was that I only studied gold. I thought that if I couldn't understand one currency, how could I study other currencies? I began to challenge the weekly line. I began to imitate the long-term holdings of private equity institutions. I began to study high-quality books seriously. I began to take notes and review the market repeatedly. I was so smart that I finally found the reason why I couldn't break through. It was that I studied the five-minute and one-hour K-line for too long. Like a frog in a well. I couldn't see the wider world. Now I see the daily line and the weekly line. I began to try to hold positions. When I caught the fluctuation of 30 US dollars for the first time in my life, I felt that I had realized it. I was ecstatic and quickly calmed down. It was time to accumulate. I finally stopped losing money. Of course, I found that I didn't make any money after a year. I began to find out why I lost money when I added positions. Why did the market fluctuate when I entered? I couldn't see clearly. I felt that there was fog before and after. But I think my path is right.
In the ninth year, I entered the market with my behavior habits. I no longer saw a fluctuation of 3 US dollars per order. A fluctuation of 10 US dollars per order. I saw a fluctuation of 30 US dollars, 50 US dollars, and 100 US dollars per order. I saw a market that was throughout. A 10-year bull market. I saw the movement cycle of the market and the sentiment of the market. I saw the magnificent waves. I saw the trickling water. I remembered what the teacher who took me to trade 9 years ago said; when you come to our studio, the first thing you do is sit in front of the computer and stare at the monthly line for me for 30 minutes. Then look at the weekly line, and then look at the daily line, and tell me what you see? Yes, I know what I see now. I saw the cyclical rise of the market. Accompanied by natural adjustments and secondary adjustments. Accompanied by wide-range fluctuations and narrow-range fluctuations, I saw a narrow range of fluctuations that lasted for two years. I also experienced a market with a single-day increase of 50 US dollars, more than once. I also saw a one-day drop of $125. I know the average fluctuation of the daily line. I know the price continuation and adjustment of the weekly line. I see the continuation and adjustment of the monthly line of the market. I know when to enter the market and when to leave the market. I have achieved unity of knowledge and action in trading. I have learned to be short. I have learned to wait patiently. Although sometimes I can't stand it. But in the end, I have made money and can eat.
In the tenth year, I started trading full-time and could make a living.
In the eleventh year, I had enough to eat and knew that profits would take care of themselves. I knew how to seize the main markets and to take a break after making money. I knew that there are not always opportunities in the market and that there are not many opportunities to really make money by following the trend.
In the twelfth year, I knew that trading consisted of short positions, holding positions and cost testing positions, and I knew that I didn’t need to watch the market every day. When I made money, I made more money, and when I lost money, I lost less money, and I had to leave the market.
Yes, it took me many years to figure it out. My 12-year trading career went by so fast. People around me were getting married at that age. I was just getting started. I started to make money, pay off my debts, and repeat my own cognition and habits. You finally realized that this market is not a market where you can get rich overnight.
It was exactly the same as the book I read three years ago. There is nothing new on Wall Street. Speculation is as old as the hills. When I look back, I understand everything in the book. Profits will take care of themselves, but losses cannot be understood automatically. Learn to wait patiently and keep the boat of speculation moving forward. Study your notes carefully and keep a record of prices. One day you will understand.
Finally, let’s summarize: After many years of trading, I have lost a lot of money. What should I do?
It may be that you should do more simulation trading and build your ideas on the simulation trading.
Consider the market from a larger cycle. Do you know whether you are doing a reversal or adjustment, and whether you are following the trend or going against it?
You will progress from the big cycle to the small cycle to enter the market and continue the price. When you are right, you will progress from the small cycle to the big cycle to see where you will leave the market. It may be that you use a strict 1/10 loss to select positions, it may be that you no longer rely on certain indicators, it may be that you no longer increase your position at a loss.
It could be that you stop trading frequently. It could be that you try to break out of the cycle you struggle in without knowing why. It could be that you truly understand short positions. If you don’t understand it in the true sense, don’t enter the market. It could be that you patiently wait for the first adjustment of the market. It could be that you are full of courage after the second adjustment or even multiple adjustments. It could be that you pick up the courage you lost in the late trading. It could be that you read a good book. Or it could be that you met me.
