#币圈亏麻的交易总结
15 trading experiences I have summarized after losing 1,000W since I entered the circle in 2017. Every one of them is heartbreaking and applicable:
1. Frequently stare at the candlestick chart and constantly monitor transactions
In trading, excessive intervention often backfires and brings unnecessary trouble. Have you ever unconsciously increased your position or withdrawn too early because you stared at the chart for too long? Looking back, do you think you were too impulsive at the time? This impulsive behavior is often the culprit of losses.
Here is a piece of advice from a seasoned trader: Make your trading plan and then forget about it. This is golden advice for novices and one of my most valuable experiences. Worry less, stick to the plan more, and let the trade develop naturally. This is the true meaning of trading.
2. The result of the previous transaction should not affect the next transaction
The previous trade's win or loss should not affect the next trade's strategy. This is an iron rule, but many people tend to forget it. They are often emotionally affected by the previous trade's win or loss. You should know that each trade is a new game, and the results are inherently random. Suppose you make 100 trades, and the profit and loss may seem similar, but in fact the distribution of the results of these trades may not be uniform. For example, you may lose 5 or 10 times in a row, and your mentality will be affected, so the next profit opportunity may also be lost due to your unstable emotions. After missing out, you chase after the highs, and the result is predictable.
Similarly, being overconfident after making money in trading is also a big taboo. Overconfidence may lead people to take greater risks, and this impact is also quite scary in the long run. Therefore, keeping calm in trading and not being swayed by short-term results is the kingly way to long-term profit.
3. Simplify your trading and you will gain more
In the world of trading, moderation is king. Many traders are always too busy: too much analysis, too much reading of the market, too much thinking, too frequent orders, in short, a lot of unnecessary busyness. As a trader, it is also important to learn to be "appropriately lazy".
First of all, you must understand that there are not many truly favorable signals in the market. Most of what you see and hear are market noises that are of little use to you. Learning to filter out these distractions and find truly favorable, high-quality signals is the key to hunting opportunities.
Secondly, learn from the operating mentality of hedge fund bosses. Although they operate billions of dollars, they do things with principles. Choosing trading opportunities is like looking for diamonds in the sand. They only choose those with the highest returns. It is better not to touch those seemingly possible or specious signals. The real top transactions are always those that are the most obvious and direct opportunities.
4. Be a defensive trader
Becoming a defensive trader is a key shift for new traders in their trading journey. Many new traders may be confused by the mentality of quick success and quick profit at the beginning. They hope to make profits as soon as possible, and even trade with the mentality of "getting rich overnight". However, a more practical and feasible mentality should be: to protect your funds as much as possible. These two mentalities cannot coexist. If you only focus on quick profits, it is likely that your funds will be lost faster.
A rule that applies to sports is also applicable to trading: the best defense is a good offense. In this context, it means only trading when conditions are favorable, and protecting your capital by staying out of the market at other times. A novice may be able to get away with success in the first few trades, but luck is unlikely to last, and you should be wary of the "newbie effect" trap.
Imagine if you were holding a gun, you would not waste bullets unless you were absolutely sure that you could hit the prey accurately. The same principle applies to trading. Keep your funds strong and only strike a "fatal blow" when a truly favorable opportunity arises. In trading, protecting your funds to the maximum extent is the key to success. As long as you can effectively control the risk, even if you encounter a strong entry signal but end up failing, the impact on your funds will be controlled within a reasonable range.
5. Have a clear exit plan before entering the market
In trading, no one tells you what to do. You have to make your own rules, which means you are responsible for your own actions. Many people lack this self-control and often lose their trading direction.
One of the most important tasks before trading is to determine an exit plan. It took me several years to realize that exiting a trade is more important than entering a trade. I have observed that many people exit a trade on impulse, resulting in either little profit or a large loss. The best way to do this is to establish a strict stop-loss and take-profit plan. Such a plan will provide you with clear guidance, allowing you to stay calm and execute the plan regardless of whether you are making a profit or a loss. This disciplined exit plan will help ensure that you can keep a clear mind in trading and reduce the impact of impulse and emotion on decision-making.
6. Avoid worthless transactions
In the world of trading, worthless trades refer to trades where the risk and profit are disproportionate, usually when traders trade blindly and frequently. Such trades often result in losses greater than profits, affecting the trader's mentality and even trapping him in a vicious cycle of losses.
Specifically, when faced with a volatile market, traders can't wait to enter the market when they see the so-called "opportunity", without considering the profit and risk of the transaction. Such blind traders usually take chances and think that even if there is only a small profit, it is still a profit. They turn a blind eye to the big risks of small profits, and even think that any market situation is an opportunity that cannot be missed, subjectively magnifying small opportunities and impulsively trading. This attitude not only shows contempt and disrespect for the market, but also makes it difficult to achieve good results in the market.
For professional traders, they usually make trading plans and set stop losses in advance to ensure that even if they lose money, the impact will not be too great. However, the losses caused by worthless transactions are different, because such traders have a shallow understanding of the market, and their trading decisions are more casual and lack of careful consideration. This avoidable loss is more harmful than beneficial to the growth of traders.
7. Highly disciplined
A high degree of discipline plays a vital role in trading in the financial markets. It refers to the traders following a set of clear rules and principles when trading to ensure that risks are effectively managed, investment goals are achieved, and the adverse consequences caused by emotions and arbitrary decisions are avoided. The level of discipline is directly related to the success of trading and is considered one of the key factors for successful trading.
I insist on not letting emotions interfere with my trading decisions. I only spend half an hour looking at the charts every day and deliberately avoid being obsessed with observing market fluctuations. I advise traders to strictly follow their trading plans and avoid over-analyzing the market, because disciplined execution is the cornerstone of stable profits. By following the predetermined plan, I can stay calm and avoid emotional decisions, thereby improving the efficiency and stability of my trading.
8. Most of the time, you should stay away from the trading table
A wise strategy when trading is to keep your distance from the market. It is important to remember that overtrading is often a quick way to lose money.
I strongly advocate using a large time frame to examine market trends. This method is like a natural filter that can eliminate a lot of unnecessary information interference. In this way, you can focus more on executing your trading plan, thereby ensuring efficient use of trading opportunities. In my opinion, the daily chart is the best choice for technical analysis.
9. Do you sleep well at night?
If you want to understand your trading stress status, the most intuitive way is to take a sleep test.
If you risk too much on each trade, then that trade will haunt you like a nightmare. Do you often feel troubled by worries about trades while you lie in bed? Do you wake up in the middle of the night and can't help but pull out your computer or phone to check the market?
If you find yourself caught up in these emotions, there could be something seriously wrong with your trading. Maintaining long-term trading and profitability requires effective risk management. If anxiety is affecting your sleep, it means you are risking more than you can handle in your trading. It is vital to adjust your positions and the amount you put into each trade in a timely manner. Everyone should be cautious about this.
10. Before real trading, you have to do these two things
Before you start trading live, there are two key points to keep in mind to ensure that your trading does not become gambling.
First of all, you must have a clear trading strategy. In real trading, lack of a trading strategy can easily make you lose your way and lead to losses. It is best not to rush into trading before you have a full grasp of your strategy. Remember, don't try to use multiple different trading methods at the same time, which will only make things more confusing.
Secondly, money management is crucial. Without sufficient funds, you will not be able to trade for a long time, let alone make a profit. Therefore, it is crucial to deeply understand the importance of funds in trading. Do not waste your funds lightly, because it is your lifeline on the road of trading. Through effective money management, you can better protect your investment and ensure that you can operate steadily in the market.
11. How is your self-control? This is very important.
The success of a transaction depends not only on the rational level of strategy, trading plan and fund management, but also on the psychological level of self-control. The trader's mentality can be said to be the leader of the trading rhythm, and successful traders must have strong self-control.
In trading, the biggest challenge does not come from funding issues, but from personal emotional fluctuations. A negative mentality will weaken the ability to respond to good trading opportunities and become the biggest trap in trading.
Allowing your emotions to fluctuate can lead to a loss of rationality, which can gradually erode the clarity of your trading decisions. Confidence is the key to successful trading, but overconfidence can be a source of negative emotions.
In trading, a principled person is better able to control himself and stay calm. Trading does not require too much personality, but requires a solid execution plan and always keeping a rational decision. By building a solid psychological foundation, traders are better able to cope with market fluctuations and ensure a more robust and successful trading process.
12. The more favorable factors, the better
The success of a trade depends on getting more favorable factors, as this will increase the possibility of profit. If trend lines, important chart levels and trading signals are consistent on the trading chart, then the trade is more likely to be profitable.
Although many traders seek to circumvent human error through automated trading systems, I personally do not like to rely on automated trading systems. I believe that as long as you can find the intersection of trends, water levels and signals, you can effectively execute trades without worrying about the quality of the trades. In trading decisions, unity and consistency are key, which can be achieved by effectively integrating various supporting factors.
13. Do not add to your position when you are losing money
In trading, it is a dangerous mentality to focus too much on winning rate and ignore risk management. I insist that you should not continue to add positions when you are losing, because this will only turn trading into gambling. I believe that a successful trader should be risk-aware and avoid taking risks, rather than pursuing a short-term account doubling.
Some traders regard profit as a secondary goal and focus more on proving the correctness of their views. However, it is an extremely dangerous attitude to pursue a high winning rate and ignore risk management. When a transaction is wrong and contrary to the market trend, some traders not only do not set stop losses and close positions, but continue to increase their positions in the hope that the market will reverse. This behavior makes trading irrational and more like gambling. Successful traders should pay more attention to staying calm and controlling risks reasonably, rather than being dazzled by a high winning rate in the short term.
14. Reasonable stop loss and strict implementation
Ensuring a reasonable stop loss and strictly enforcing it is a crucial principle in trading. I have always believed that traders who do not set a stop loss may eventually face the risk of liquidation. In each order, set a reasonable stop loss distance and make wise decisions based on personal circumstances. In addition, I would like to remind traders not to expand the stop loss distance when losing money, and not to close the position too early when making a profit.
After placing each trade, you should set your stop loss and profit targets and stay away from emotional trading. Once set, it is best not to check the orders or charts repeatedly, as such behavior may interfere with emotions. When seeing that the order is losing money, it may tempt traders to expand the stop loss distance, resulting in greater losses. On the contrary, when the order is profitable, closing the position too early may cause traders to miss out on more profits. In short, constantly staring at the market will have a great impact on emotions and mentality. The best practice is to stop interfering too much after setting it.
15. Wait for the best trading opportunity
If you find it hard to bear, then waiting for a clear trend to emerge before taking action is also a good choice. There is no shortage of opportunities in the market, what is really lacking is the attitude of being ready at all times. In the world of trading, patience and ensuring that your mentality is in the best state are the keys to success. Don't rush to act, but wait for the right time, because a clear trend will provide you with a clearer direction.
In trading, the market often produces false signals or weak signals, however, the importance of waiting for the best trading opportunity is self-evident, just like a cheetah waiting for the best prey. For weak signals, we should not be too risky, but should wait patiently for a solid opportunity. It is crucial to remain patient because the market is constantly fluctuating, but not every moment is the best trading opportunity.
Summarize:
Trading is a means of investment and should not take up your entire life. Unless you are a professional trader, there is really no need to spend all your time trading. You still have to have your own job and other careers.
In summary, successful traders stick to simple and effective trading strategies, maintain strict discipline, patiently wait for the best trading opportunities, set reasonable stop losses, and avoid overtrading and unnecessary risk-taking. And don't forget, there is a whole life and career waiting for you outside of trading. Following these suggestions can help you succeed in the financial markets more steadily.