Many of my friends have suffered heavy losses recently because of their previous successful transactions, which made me want to talk about the opportunities in trading. In my opinion, this should be the most common mistake made by trading veterans. It can be called "Misfortunes often lie behind blessings, and blessings often lie behind misfortunes."
I have seen that "when a person wants to get something the most, he will most likely be disappointed. In speculation, a person who is afraid of losing an opportunity will miss the opportunity. Human nature is often like this. If you are too focused on the fear of losing an opportunity, you will ignore or not know what kind of opportunity you need. At this time, he is in a state of expectation, not a state of thinking, so he does not know or forget what kind of opportunity he is waiting for. If he does not put himself in a state of observation, he will become busy in vain. As the saying goes, haste makes waste. A true speculator should know how to act according to his own judgment, rather than according to expectations. This is what Livingston said about the courage and will of the speculator. The highest state of any kind of skill in this world is a transcendent state of mind that is outside the game. The so-called "not seeing the whole cow" means seeing the reason rather than the color, so he can "meet with the spirit instead of the eyes, the official knows to stop but the spirit wants to go." This is why the skill is appreciated by people. The fatal mistake of traders does not happen when they are beginners but when they are veterans. This is why novices like to study skills and veterans pay more attention to mentality.
Always remind yourself of what you cannot control, especially after you have achieved success that makes you happy, because success will make you feel omnipotent. When you can't see the danger, it has come to you. It is difficult for most humans to abide by the rules and regulations. It is a simple habit for animals. The cold-blooded killer crocodile will not chase, but can quietly wait for food to hit its mouth in a hidden place in a certain section of the river. Trading requires such simple rules. All high-level killers in the food chain have an ethereal state of mind, which is kept between two attacks, and people have to go through hundreds of battles to comprehend this state. "
The simple habits of crocodiles have important reference significance for futures trading:
1. First of all, you have to become a carnivore in the market. You must have strength and experience to focus on one field and have absolute advantages to judge the mistakes in the market. (Carnivore is not a sin. It conforms to the law of survival of the fittest in nature and protects the balanced development of nature. From the perspective of futures, carnivores use prices to rationally allocate resources to the most competitive places, avoiding the long-term occupation of limited social resources by enterprises with low productivity.)
2. Lurk in the hidden place of water source, where prey must pass, and wait patiently. (Be invincible first, ensure your own safety and always stay in a place where you will not be regarded as prey by others. Preserving yourself in the speculative market is the most important thing. At the same time, do not stir up trouble when the market price is reasonable. When you participate in distorting the price, you will naturally become the prey of other balance protectors)
3. Constantly calculate the distance between the prey and yourself, the reaction time and speed of both parties, confirm that the attack can be successful, reduce the number of attacks, and reduce the cost of the attack. It is to wait for the prey to make a mistake. The bigger the mistake the prey makes, the greater the chance of success. (Wait for the enemy to be defeated, and balance between missing opportunities and giving up bad opportunities. The current futures market usually gives very good opportunities because the majority of participants are technical people. So don't easily attack with a heavy position when the opportunity is average. Because there are not many carnivores in the market, the prey level is low and there is no vigilance, so big mistakes are often made. If you attack too early, you are likely to be accidentally injured and affect the operation. Don't worry about missing opportunities.)
4. If you fail after attacking, return to the water immediately to get yourself back to safety. If you succeed, decide how long to stay on the shore and how far away from the shore you leave according to the meat you bite. (You will make a profit immediately and cannot return to a loss.)
5. Hold on to the prey, wait for its reaction, and take corresponding actions. How much you can get in the end is not determined by you, but by the prey. (Profitable increase depends on the market adjustment and rebound. Because the opponent is unwilling to admit defeat and increase the position, it provides a safe opportunity to increase the position.