There are two key points in trading. One is the winning rate, which is how many times you got it right in 10 transactions; the other is the profit and loss ratio, which is the ratio of the average profit and loss to the loss each time. We study trading to study these two factors, either to improve the winning rate or to improve the profit and loss ratio. The core of all thinking is for these two factors.
Some people may not have a clear understanding of the difference between gambling and futures. Gambling and futures have similarities and differences. Gambling is actually very simple. Betting big or small can be called gambling. Its winning rate is about 50%, and its profit and loss ratio is similar to the winning rate, so gambling is "high risk and high return, low risk and low return".
Futures also include "high risk and high return, low risk and low return", but it also includes "high risk and low return, low risk and high return", so we have to look for "low risk and high return" opportunities in these four items.
The way to improve the winning rate is to do your homework, try to do the correctness of the direction research, and the trading plan should be as close to the direction as possible.
In fact, in summary, most of my transactions are meaningless transactions, which are very casual. What we have to do is to minimize these meaningless transactions, and People with good self-discipline may perform better in this regard, just like the current "shopping addicts", they shop and pay at will, but in fact they know that some things can be bought or not. Another thing is to maintain a good state. If you always suffer from insomnia and don't know what to say all day, it will also reduce your winning rate. In short, doing your homework + reducing unnecessary transactions + maintaining a good state can increase your winning rate.
Improving the profit and loss ratio means reducing the stop loss and grasping the main trend. Try to make the stop loss of each transaction smaller, but it is easy to miss the market, so the setting of the stop loss is very skillful, which determines where your opening time is. Grasping the main trend is to wait for the trend to come out before making an order.
