Beginners try to avoid shocks, while experts simply step over them.
Please watch till the end patiently. You will be better than you are now in ten minutes.
1. No one can know when the shock ends and when the trend begins
Novice traders have a low level of awareness and will look for various ways to identify fluctuations and trends. They do not know that future trends are uncertain and unpredictable. You have no idea whether the market will continue to fluctuate or develop a trend. You will only know when you look back after the market has developed.
Experts know that the trend is uncertain, and their way of dealing with it is to just go ahead and move forward, regardless of whether it is volatile or not. They have their own trading system and treat all signals equally. In their eyes, there is no such thing as volatility or trend.
They have light and diversified positions and are fearless. No matter how long the volatility lasts, they can survive with small losses. They know that the market is uncertain and future trends are unpredictable. They know that profits and losses come from the same source. They will firmly and consistently execute their trading systems and wait patiently.
2. It is meaningless to talk about fluctuations or trends without considering the cycle.
Everyone looks at the cycle differently. What you see as a volatile market may be a trend in the eyes of others. For example, a daily-level volatility may be just a small trend at the hourly level.
Theoretically, we should find ways to avoid volatile market conditions, and it is best not to participate in them, because these volatile market conditions do not offer any opportunities and will continue to cause us wear and tear.
However, the market trend is uncertain. Whether the current market is volatile will only be known after the fact, and no one knows when the volatility will end and a trend will appear.
In order to avoid volatile market conditions, most people continue to add various filtering conditions to their trading systems. However, volatile market conditions also contain trend markets. If you avoid these volatile market conditions, you will also avoid some potential trend markets.
3. Most people generally use three methods to stop losses in the face of volatile market conditions.
The first one: change the entry method, such as increasing filtering, reducing the number of stop losses by reducing the number of transactions. Of course, you will also lose better entry points and more opportunities.
The second type: consider it from the perspective of exit, such as increasing the stop loss. The number of stop losses will be reduced accordingly, but the loss will be huge if the stop loss is used once.
The third method: cognitively accept the continuous losses caused by shocks, find a stop-loss method that suits you, and execute it consistently.
The first two methods are only temporary solutions and not a fundamental solution. Only the third one is done by an expert.
Essentially, when the trading efficiency of your trading system has reached a limit, any modification to the system will cause a new problem while solving one problem. #币安合约锦标赛
