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Is the daily chart too big for trading? What is the best cycle time?

quantum state�salted fish

What is a perfect trading system? Or is there a so-called perfect trading system?

connotation jokes tv

If you define perfection as making money within a certain period of time in the future, then such a system does not exist. But we can have a relatively good trading logic. Even the best trading system cannot be called perfect, because a trading system must have a time that is not suitable for its trend, and if you execute it consistently during this time, you will not make money. It is a fact that must be admitted. I still use the turtle trading rule as an example. Is it a perfect trading system? If you say it isn't, it does generate a lot of profits, and the traders who stick with it have had a fair amount of success. But if you say it is a perfect system, it is not necessarily true. The reason why few people use the Turtle Rule is that the drawdown of this system is very large, even reaching 50% in the worst case, and the core of this system The concept is to only focus on the big trend, and basically give up on the oscillating trend and the half-big or small trend. What will this bring? When there is no trend, there will be no profit for a long time, and the constant wear and tear will shrink the account, so ordinary people cannot use it at all. So here is an important understanding of trading. Any trading system has advantages and disadvantages, and some disadvantages are unavoidable. Forcibly avoiding it will only cause greater disadvantages in another aspect that you may not see. When we make money, we must consider the possible unfavorable factors behind it, just recognize it. Just today, a Huiyou asked me this question. I have said in many questions and answers that my own trading system is a deformed version of the sea turtle. The parameter was changed to fifteen. In addition, the Turtles have a floating win and increase position link, which can increase positions up to three times, and I do not have a position increase link. Other than that it's basically the same as a turtle. The friend asked me why I changed the parameter to fifteen. Does fifteen have any special significance? Is the profitability stronger than twenty? I replied that fifteen has no meaning, and neither does the turtle's twenty, it's just a matter of personal preference. Let's take a look at how fifteen and twenty affect the transaction? New highs and new lows on the 15th, when a profitable order is about to be closed, the profit he takes back is less than that on the 20th, that is to say, my method for every profitable order is less than that of the turtles. And earn more, this is fifteen's advantage. However, if there is a deep callback in a trend, it happens that the callback breaks the 15th parameter, but not the 20th parameter. My order was called back, but the Turtle's holding profit order is still there. If the market continues to move in the original trend after the market pulls back, then I will miss the following market. Therefore, the disadvantage of fifteen is not as earthquake-resistant as twenty, and it is easy to be in the trend. Get out on a pullback and miss the trend. Comparing these two points, you will find that the two parameters have their own advantages and disadvantages, and it cannot be said which one is necessarily good or which is necessarily bad. Seeing this, many people are wondering whether there are optimal parameters, that is, they can vomit less and can withstand callbacks. So someone began to experiment with various parameters, and finally found that the parameter of seventeen was the most profitable in the past ten years. So I set the parameter to 17, and after using it for half a year, I found that the effect was not so good, so I went back to test the data of the past five years, and found that 23 was the best, so I may change it in the end. Here we have to realize a problem. There is no such thing as optimal for any parameter in a trading system. The optimal value you backtest is only the optimal value in history. In the next moment or in the next period of time, this "optimum" The parameter may not be this value, so here we can conclude that there is only relatively good trading logic, and there is no perfect trading system. In the final analysis, whether a trading system can exert its power depends on the traders behind it who execute it. Whether the level of cognition of traders can match the corresponding trading system, and whether traders can discover their real trading logic when learning the trading system. This is where we need to improve. A trader with top-level cognition can create a trading system with positive expectations casually, but a trader with insufficient cognition, even if a top-level trading system is in front of him, he will not Uncontrollable. Are you satisfied with this answer?

How to do a practical Martin strategy with limited funds?

金融长工

If you have enough funds, theoretically speaking, you will win every battle and win the whole world by using the Martin strategy, cooperating with EA automated trading, and running 24 hours a day. This is the charm of martingale strategy! I've always thought martingale wasn't a bad strategy. If many people say it is not good, it is because it has been played badly by people who don't understand. As one of the most basic strategies in trading, Martin's strategy can deal with most market conditions. It has a simple principle, can measure points, and can be used as an ideal marketing tool strategy. It also has strong vitality in actual trading. Martin's ending is inevitable liquidation? I don't think so. There is only one reason for a liquidation, which is a heavy position . Martin's main problem, and a problem that will inevitably occur, is to increase positions layer by layer, resulting in a certain sense of heavy positions. However, since the Martin strategy is chosen, it is necessary to face and improve this problem. Entry-level Martin Strategy Points Deduction The basic principle of Martin's strategy is that in a two-sided market where you can buy up and buy down, you generally only bet on one side. Until the market pulls back, all previous losses are covered. For example: 10,000 US dollars, open a position to do EUR/USD. The first open position is 0.1 lot. Each interval is 15 points, and the positions are increased in equal proportions. The spread is set at 1 pip for EUR/USD. The level is set to 20 levels. That is, when the market is unilateral, increase the position 20 times against the trend. Let's analyze the retracement of this simplest Martin strategy. The picture above shows the equidistant reverse increase trading strategy often used by junior and intermediate traders , which is what we often call the reverse Martin strategy. All traders who liquidate their positions basically cannot do without the behavior of multi-layer reverse increase of positions. We can see that when reaching the 20th floor, the number of positions is 2 lots, the reverse order is 275 points, and the floating loss is 2870 US dollars. If you want to call back the floating loss to the initial state, you need to call back 143.5 points. Assuming that the market does not pull back at this time, and traders stop adding layers, let's measure the risk of it continuing to go against the trend. Set the market unilateral as a complete 400-point large unilateral dead carry. The counter-trend points on the upper 20 floors are 275 points, and the unilateral counter-trend points are 125 points. The 2 hands have already lost 2870 US dollars, plus 125*20, it is equal to 2870+2500=5370 US dollars. The 2-hand position needs to be covered by 5370 US dollars, and it needs to wait for a callback of 260 points. This is a very tormenting thing. The above are just the simplest Martin entry-level strategies. Evaluating this strategy, we can see that in the case of adding positions on the 20th floor, it is necessary to retrace 50% of the points against the trend. In fact, in a super strong market, it is difficult to have a 50% quick retracement, which will inevitably reduce the efficiency of the strategy. If you want to increase the speed of quick replenishment, you need to increase the multiple of the position in the later stage of the contrarian trend, such as increasing the position according to the position ratio of 1.5 times or 2 times. But it will bring about a rapid increase in positions. If the control is not good, the floating loss will accelerate rapidly. This is why we often say that Martin's potential risk is huge. Anti-Martingale (Anti-Martingale, AM) The opposite of the martingale can also be used. That is, start with one unit bet, double the bet after each win, but return to one unit bet after each loss. The advantage of this strategy is that the risk is low, and the increased bet is based on the winning money, which can keep the account funds safe. The downside of this method is that the biggest bets are all on inevitable losses. Optimizing Martin's strategy, the most worthwhile path to consider is to take Fibonacci to dynamically increase positions! The strength of important support levels and resistance levels is different. For example, at the market reversal point, add multiple positions. In the secondary strength position, do not increase positions according to fixed regular distances and multiples. Fibonacci is something worth spending a lifetime studying, and it plays a core role in the K-line. How to combine Fibonacci and Martin's strategies, and increase positions according to Fibonacci's rules on the increase distance and increase multiples. The idea is as follows: 1. In order to prevent and control risks, the initial opening position can be selected to have a long space from the bottom of the band. For example, after rising 60 points from the bottom, start reverse shorting, and gradually increase the position of reverse Martin. In this way, some risk factors accumulated at the bottom can be eliminated. 2. You can choose the combination of Martin and other technical indicators, such as the sixth line of Qiankun proposed by the broker, in the position of the Fibonacci moving average, or the upper track of the Bollinger Bands, to match different dynamic Martin positions. 3. In some positions, in order to reduce the fatal damage to Martin caused by the super unilateral, strategically, you can choose to dynamically hedge some positions. Hedging positions can also be hedged forward and reverse using the Martin strategy. 4. The combination of Martin strategy and Fibonacci is a scientific research field worthy of in-depth study. If each factor is calculated in detail and well controlled, it is expected to produce a Super Martin. But the small capital mentioned by the topic, I can’t understand how small it is. Generally speaking, no matter how Martin optimizes, he still has a minimum capital requirement. If the capital is small and can’t even meet this standard, then There are only two ways. First, give up Martin . For a trader who does not even have basic conditions, this is a wise choice. Second, change the standard account to a cent account , so that your original funds can The amount is magnified a hundred times in disguise. Finally, no matter any strategy, there are risks. Here I would like to remind every trader that risk always comes first.

How to distinguish between shocks and trends?

tianji road

For novices, it is normal to be confused about what is "following the trend to make orders" and "now fluctuating in a range, go long on dips". Don't be afraid of people's jokes, and learning with a correct attitude is the last word. If you want to distinguish between shocks and trends, you must first know what shocks and trends are, right? Chart 1: Range-bound, go long on dips So let's start with the trends. In the market research method of technical analysis, the concept of trend is absolutely the core content. All the tools used by chartists, such as support and resistance levels, price patterns, moving averages, trendlines, etc., have the sole purpose of assisting us in estimating market trends so that we can trade in the direction of the trend. In the market, "always trade with the trend", "never go against the trend", or "the trend is a good friend", etc., are already clichés. So we have to spend some time defining and categorizing trends. In a general sense, a trend is the direction in which the market is going. However, for practical application, we need a more specific definition. Under normal circumstances, the market does not go straight in any direction. The market movement is characterized by twists and turns. Its trajectory resembles a series of successive waves, with fairly obvious peaks and valleys. The so-called market trend is formed by the direction in which these peaks and troughs rise or fall in turn. Whether these peaks and troughs are sequentially ascending, descending, or extending horizontally, their direction constitutes the trend of the market. Therefore, we define an upward trend as a series of successively rising peaks and troughs, a downward trend as a series of successively descending peaks and troughs; a horizontal extension trend is defined as a series of successively extending horizontal peaks and troughs, see chart . Chart 2: Uptrend Chart 3: Downtrend Chart 4: Oscillation Trend Seeing this, you may want to ask the questioner, isn’t this horizontal extension trend just a shock arrangement? If you can ask this question, congratulations, it means that you have made progress! Yes, this horizontal extension is exactly what is often referred to in the market as a shock! Many people are accustomed to thinking that the market has only two trend directions, either rising or falling. But in fact, the market has three directions of movement - up, down, and sideways. As far as a conservative estimate is concerned, at least one-third of the time, the price is in a horizontally extended form, which belongs to the so-called trading range, so it is quite important to understand this difference. This horizontal stretch indicates that the market has been in a state of equilibrium for a period of time, that is, in the above price range, the forces of supply and demand have reached a relative balance. However, while we define this flat market as a sideways trend, the more general term is "no trend". Speaking of this, you should understand the subject? Usually these analysts say that following the trend to place an order refers to placing an order following an upward trend or a downward trend; while "range oscillation, long bargain hunting" refers to a strategy to deal with the trend of horizontal extension. To distinguish the relationship between the three is to use the peaks and troughs as a reference to see whether they rise sequentially, descend sequentially, or extend horizontally.

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Detailed processing of data market

devil uncle k

When it comes to data market traders, nothing is more exciting than "non-agricultural data". The appearance of non-agricultural data directly shows that the economic environment of the United States also indirectly affects the trend of the US dollar index, gold and other commodities and currencies. The non-agricultural data is a double-edged sword. Most moderate traders will stay away from the announcement of this kind of data and choose to spend short positions. There is another group of traders who will lurk before the data is released and then attack at any time. And our topic today is to talk about the market trend performance and how to deal with it when the non-agricultural situation occurs. (This article will take EURUSD as an example) 1. Identify the market position of the variety. Before the data is released, it is necessary to observe where the current market is in the relative cycle, and then conduct a general analysis of the overall market trend. 1. Be clear about the long-short situation of the current market in the main cycle you are trading. 2. Pay attention to the daily volatility of the market of the day and whether the market is trending or oscillating. If the market is oscillating with small volatility, there is a high probability that there will be a wave of trending market when the non-agricultural situation occurs. 3. If the market of the day is a trending market, then you need to switch to the big cycle to find out how much room there is for the support pressure of the specific big cycle in the current market position, and compare these spaces with the volatility of the market that broke out in the day refer to. The key thing to pay attention to is whether there is a resonance position at the support pressure level of the large cycle, which is to prove whether the position is strong and effective. 2. Signal optimization based on statistical morphological characteristics does not have a great impact on the data market in the large cycle, because the stability of the large cycle will filter out a lot of noise in the small cycle, but the large fluctuations in the key positions of the small cycle are very important It may be the start of a small trend, so next I will mainly show some morphological statistics about EURUSD at 15 minutes and 5 minutes. Some of the above patterns are basically the patterns that appeared in EURUSD after the non-agricultural situation. how to deal with it. Scenario 1 : The market on the non-agricultural day has been fluctuating in a small range, so we should pay attention to whether there will be an explosive market when the non-agricultural news is announced. Case 2 handling method : the market on the non-agricultural day has already had a trend. When the non-agricultural news is announced, we need to pay attention to whether the market will reverse or continue to fluctuate slightly along the afternoon market. Case 3 handling method : When the non-agricultural data is released, there is no outbreak of the market. When the market noise is particularly loud, we use our own systematic fund management for risk control. Frequent trading in this situation is not recommended. 3. The fund management of the data market. Everyone's fund management is determined according to their own system. It can be defined according to their own single retracement or they can control their positions according to some retracement point ranges. When the market breaks out when the data occurs, traders can use the 38.2 position of the Fibonacci dividing line to make a hard stop loss. 1. There is a bottom order before the data is released : traders can use it to reserve a part of the non-agricultural position according to the specific situation of their account. If the market moves in the direction of your bottom order, then you can rest assured. If the sudden outbreak is in the opposite direction to your bottom order, my suggestion is that the profit of your bottom order should be relatively equal to your data loss order, so that it will not cause too much damage. Because everyone's system is different, money management is also different. 2. When there is no bottom order : You need to make statistics about the approximate range of the stop loss amount of your past data market, and then adjust your position according to these amount ranges. After all, the risk of the data market is relatively high, so it is not recommended for traders to gamble on the data, it is more important to survive in this market. The data market is a double-edged sword with advantages and disadvantages. In this article, we did not discuss the news of the fundamentals, but used the technical aspects to figure out how to deal with these more complicated trends based on the market trend. The appearance of non-agricultural data in the system of some traders is the breaking point of profit, but we must also bear in mind that risk is always the first in the process of trading, and history will not completely repeat itself, but when some key patterns appear, it is big Probability will follow a similar trend. The most important thing is to determine some risks in transactions according to your own risk control.

Can the EA of Martin's trading strategy be profitable for a long time?

孤酒浪人

I have my own ideas about Martin's trading strategy. I think that if Martin's strategy is properly improved, it will definitely bring rich returns. It is an undeniable fact that any knowledge is a basic theory, which requires the executor to combine it with practice in order to maximize the benefits. It is undeniable that martingale strategy itself has disadvantages, so can your disk technology and fund management make up for martingale's own defects? I think that if the two points can be fully connected with the Martingale strategy, there is a high probability that the advantages of the Martin strategy will be maximized. For the Martin strategy, there are two most critical points: 1. Confirmation of intervals and cycles—disk technology 2. Sufficient funds - fund management For the above two points, we pay more attention to the first point "confirmation of interval and cycle". I think many traders who learn Martin's strategy, the period given to Professor Yu is a four-hour chart, so can they be adjusted to a three-hour period chart? The four-hour chart has a disadvantage. It often misses the market and the large range makes it difficult for the price to run to the profit-taking position when it fluctuates and the market reverses; if you choose the one-hour or two-hour chart, the stability of the range will be greatly reduced. However, there is a high probability of repeated stop losses, so is the three-hour chart a period chart that you can consider and refer to? On the other hand, the improvement measures of the interval method are confirmed. Theoretically, the confirmation of the interval by Martin strategy is a combination of 4-5 candles in the four-hour chart. We can calculate that the market operation time is generally 16-20 hours, that is to say, it takes nearly a day. The hidden dangers brought about by this are often Trading is based on the next day's market, not the current day; considering that if the number of candle lines is reduced, the accuracy of market judgment will also be reduced, so how can we make up for this defect? The consideration of technical indicators can be added, including oscillators and trend indicators, such as KD and MA. KD——Look at the golden cross, the dead cross and hurry up are not in the overbought and oversold zone. MA——Using the 60-day moving average as a parameter, if the price appears below the 60-day moving average, but the time distance is closer to the 60-day moving average, then it can be judged that the entry signal is invalid. Everyone has their own way of analyzing the disk, and the above are the ideas I provide to you. I think one thing we all agree on is that quantification is just execution, and the trading strategy we have mastered is the core. As for the Martin strategy itself, it is a fact that there is a long-term and stable profit in theory.

Is the Puzzle Harder or Trading Learning Is Harder?

邵悦华

Self-taught trading is like playing a jigsaw puzzle game. There are various technical indicators, various trading theories and trading tips in the market, just like scattered pieces of a jigsaw puzzle. You have to pick them out and put together a stable Ideal piece for profit. But the difficulty of self-study trading is much more difficult than playing puzzles, just like you have to choose hundreds of suitable elements from the tens of thousands of small fragments in the market, and finally build a set of ideal puzzles of your own. The process of various trials and errors and adjustments is more difficult and frightening because each trial and error and adjustment will be accompanied by the loss of funds and the passage of time. It is true that puzzles are not simple. Many people think that puzzles are difficult because people who lack logic and spatial ability do not know where to start in the messy local graphics. But for anyone, trading is still difficult when they cannot analyze and judge. Buying and selling operations can be carried out by feeling and luck. The simplicity of operation behavior does not mean that trading is really simpler than puzzles. Trading is actually harder than a puzzle. One is that a deal failure would result in a double whammy When you fail to succeed in the jigsaw puzzle game, you will not face other negative losses, and once you fail to trade successfully, you will face a high probability of loss of wealth and reduction of funds. That is to say, the failure of the puzzle is only a blow to the spiritual level of self-ability, while the failure of the transaction will not only impact the confidence of the trader, but also lead to the loss of wealth. The second is that trading is more a test of people's psychological quality than puzzles In addition to logical space ability, jigsaw puzzles test people's psychological level more about patience, while trading tests people more comprehensively, including not only patience, but also the balance of temptation and fear. At the same time, under the amplification effect of trading funds , this test will be multiplied. Third, the trading system is more complex With the help of logic and spatial ability, the trading puzzle is more like linear thinking, while the trading system is more complicated. First of all, it is faced with hundreds of indicators. Traders need to choose several indicators among hundreds of indicators, and these choices are not It is not random, but needs to be selected according to a certain concept. After selection, these indicators are organically combined to form a decision-making system. How to do a good deal? We believe that transactions are far more complicated than puzzles, so how can we do a good deal? One is not to trade with the mentality of playing games Jigsaw puzzle is a kind of game, it doesn’t matter if you can’t solve it, you can try it randomly, and it’s only natural to play puzzles with the mentality of a game. But you must not have the mentality of playing games when doing transactions. If you treat trading as a game and do whatever you want, it will bring you significant financial losses. The mentality of trading should be prudent and prudent, not with a gamble mentality, and risk control should be put in the first place, and every trading action is justified. The second is to learn from others to form a self-trading system No one has to invent a set of characters before learning, and no one has to study how to produce cars before learning to drive. The reason why human beings continue to progress is to improve and innovate on the basis of learning and absorbing the excellent achievements of predecessors. For trading, the trading system is the core, but it is not recommended for traders to learn hundreds of trading indicators one by one, and then think about how to build a system. You can learn the trading systems of different excellent traders, and then adjust according to your own personality. Adjust your own system with the actual situation. Learn to stand on the shoulders of giants. The third is to be patient Whether it is a puzzle or a transaction, patience is always the most important psychological quality. If you are not patient, you will have a little bit of it, and you will never be able to go deep to achieve true proficiency. Trading requires patience. Traders need to wait patiently for trading opportunities, patiently hold positions, and patiently wait for the opportunity to close positions. The trading learning stage requires more patience. It is very simple to understand the basic idea of a trading system, and it is also easy to know the framework of a system, but to truly master the essence and details of a system requires long-term patient study and thinking.

Exchange circle for high-probability trading crypto enthusiasts

How to deal with the problem of trend deviation between different cycles?

domestic big baby

It is actually very easy to solve the problem of the contradiction between the cycles encountered in the transaction. For friends who do not know the trend signals between different periods, the root cause is the uncertainty of the level of their own trading strategies. To give a simple example, many traders analyze the market mainly based on the daily chart cycle, but choose the one-hour cycle chart as the cycle for formulating strategies. This situation is not uncommon, and it often happens among novices. For this kind of situation, what I want to emphasize is that we must be clear that analyzing the market and formulating strategies are two completely different parts and should not be confused. The two cannot replace each other but complement each other, and complement each other. On the other hand, I think what I still need to emphasize to the subject is that the international capital market is a 24-hour all-day trading session, which is divided into three components: the Asian market in the morning, the European market in the afternoon and the American market in the evening. Among the three, the market trends are essentially different. The Asian session is mainly a continuation or callback of the previous night’s US market; the European session is unstable when the market has just started; It is the main trend period of the variety of the day, but it fluctuates greatly. Therefore, according to the daily trend of these three regional varieties, traders will be more inclined to the US market, followed by the European market, and finally the Asian market. Therefore, combining the three regional trading periods, it will naturally not be difficult to answer the question that returns to the subject. When the trends shown by the large and small cycles are contrary to each other, we are more accustomed to choosing to wait for opportunities. This opportunity is to enter the market when the trends of the large and small cycles are consistent. The large cycle and the small cycle have different usage aspects in the formulation of a transaction. Under normal circumstances, the large cycle is used to establish the trend of the variety, while the small cycle is often used to confirm the timing of the entry and exit of the variety. This way of dealing with large and small cycles is equivalent to the fact that there are two adjustment bands in the impulsive wave in "Wave Theory", and the adjustment wave contains at least two impulsive bands. They all need to be connected alternately between the adjustment section and the drive section so as to move forward. Therefore, when the direction of the trend judged by the large cycle is contrary to the direction of the small cycle, it is likely that the small cycle chart is undergoing temporary technical adjustments. We'd better wait for the end of the small cycle adjustment, and then do unilateral trading with the same trend as the large cycle. Some friends will ask, will it be a market change in direction when the trend has just started? Because although the small period is unstable, it is more sensitive to the signal of trend conversion than the large period. Of course this happens, and it happens every day. This requires us to be clear. This is also the trading idea recognized by international trading masters, "it is best to do trading in the third wave". Trading is about making rational trade-offs. There is no need to take risks with the bullets in your hands when the market is unstable. It is best for us to choose wisely to ignore such short-term trend-changing time periods. Generally speaking, the safest and most sensible choice for the conversion between large and small cycles is to choose when the large and small cycles resonate. Because, for real money, there is no need to compete with the market to try your guts.

What conditions are needed to achieve stable profitability?

wood fire bright lsw

There are 3 major elements of stable and profitable trading: 1. Stable system 2. Stable execution 3. Stable mentality. The three elements of profitability complement each other and influence each other. A good system guides good execution, good execution brings good results, good results bring good mood, and good mood will in turn promote execution. But having said that, any mature trading system, including the original system, can only solve the first basic element. And stable execution and stable mentality cannot be solved by any system itself. A system is only a method of trading, not the result of trading. To form a profitable state of sustainable operation, not only the system is needed, but also one's own trading quality. Without any one piece, the wheel of profitability cannot move forward.

Why can't non-farm earn money?

笑醉生梦

Before answering the question of the subject, I would like to ask whether the subject really wants to do data market, or is just curious. For many traders, they want to make a fortune from non-agricultural transactions. This has something to do with many order-calling companies in the market. They can only hype non-agricultural transactions every month in order to attract traders to open accounts and deposit funds to earn income. In fact, there are many ways to do transactions, and the income is higher than that of non-agricultural markets. If you are interested in non-agricultural market, it is unnecessary. If you just understand the situation, I think it is unnecessary. Many people do not do well in the data market, due to both external and internal reasons. I will only talk about the main reasons, as for the others, it is estimated that the master has already covered everything. 1. External reasons The non-agricultural time is when the platform business has a bumper harvest every month. Many traders think that non-farmers make a lot of money by themselves, but in fact it is the platform business that transfers the big money. Points, freezes, plug-ins, rebates, overnight fees, etc., the monthly non-agricultural nights are actually a big carnival for platform operators. Actively mobilizing business personnel to encourage account opening, deposit, and dream of getting rich overnight is actually to realize the agent's own getting rich overnight. 2. Internal reasons The trader's own technology is not enough to pass the test. Non-farm payrolls will have trend signals before the market, which includes two trading methods: trend Daily chart naked K shock range pending orders 2.1 Trends If you have a very complete trading system, you can designate a trading plan according to your trading system, and you don't need to consider non-agricultural issues at all. According to the requirements of your trading system, you can enter the market in advance, set a stop profit and stop loss, and wait for the market to start before closing the rice. 2.2 Pending orders in the daily naked K shock range The highest price and lowest price of the previous day's K-line are the most valuable for reference. Let me briefly introduce this method to you and give you some inspiration: (1) Confirm the upper track and lower track of the shock interval according to the shape of the previous day's K-line (2) One hour before the market, observe the K-line situation of the one-hour chart and the four-hour chart, and determine the middle track (3) Finally, directly hang the shock order, set the stop profit and stop loss, and let the market give the result Of the above two methods, the one I use the most is the first trend strategy. The point is safe, the profit margin is large, the retracement is small, and the unilateral market is smooth. As for the second daily chart naked K shock interval pending order, this requires the trader to have a very accurate interpretation of the naked K. If the standard is not met for the time being, I suggest using the first method as the main method. Let me talk about my understanding of non-agricultural data. Trading is not news media. Traders must be able to think independently and analyze logically calmly. The media sponsors advertising, and the company is for performance. If you listen to such people, you will lose confidence in the transaction more and more. Take a rational look at non-agricultural transactions. After all, the foreign exchange market is not open in China. It is the norm for agents to hang plug-ins in the background of MT4 and MT5 on the day of non-agricultural transactions.

Where is the difficulty in doing business?

connotation jokes tv

When I suffered serious trading losses in the early days, I had a big doubt, whether trading can make money, whether anyone can really make money, and if so, where is the secret, why is it so difficult, and why was it so difficult at that time? I can't even find the direction. From today's point of view, even though my trading is much better, I still feel that trading is not easy, but at least I have some experience, and I hope to share it with you. The first difficulty is cognitive difficulty. As I said at the beginning, I don’t know how to start, and I can’t find the direction. This market is too noisy, the usage of various indicators, the application of various theories, and some self-created tactics. emotional transaction. As a member of the market, how to choose? I chose one, and worked on it for half a year, but I still can’t make money. The liquidation is still the same. How to choose? Are so many methods correct? Or is it that trading is not a matter of all roads leading to Rome, only one road is right? So which one is right? Technical or fundamental, how to choose? So how to solve this difficulty? Improving cognition is the key. I personally think that the most basic first cognition is to understand that the market is unpredictable. That is to say, if you apply all the above indicator theories with the thinking of predicting the market, you will not draw correct conclusions. But if you give up predicting the market, all the above methods are very useful. What I said is a bit of a mouthful, let me give you an example. For example, the moving average indicator, if you want to use the moving average to predict the market, this is impossible, no matter what long arrangement you use, what moving average resistance pressure, you can't predict how the market will go next, because the market at the next moment will It will not go according to the indicators you set, and the trend will ignore you at all. However, if you don’t predict the market, you simply go long above the moving average and short below the moving average. From this perspective, the moving average is very useful. Basically, you can build a very good positive expectation trading system around this point. The second difficulty is resisting temptation. In this information age, data and all kinds of information are transmitted too fast, and the real and the false are all mixed together. It is very difficult for ordinary traders to extract what is really useful to them. For example, according to the first point, you finally started trading according to a method, and then you didn’t make any money for half a year, and people in your various social media groups posted several times after a while, or It is a super big floating win list, you may not be able to sit still for a while, feel that your stuff is still too rubbish, and want to find out the method of "others", but as time passes, the doubled person may disappear And you realize that it was just the result of his huge profits. But this period of time that should have been implemented in a regular manner was wasted. So continue to implement your own method, and after another half a year, you find that a person whose trading style is very similar to yours has doubled, and your profit is less than 20%, you may be about to die of anger. So you will wonder if that person has an absolutely good optimization in this trading method that he didn't discover? So I went to look for other people's methods, and later I realized that it was only because the British pound happened to have a market suitable for this method, and you missed the British pound because of gold and crude oil. There is no magical method. Time and time again, you doubt Your system will completely consume your patience in the end, and a good trading system will completely pass you by. The third difficulty is the details. I have stated the importance of a trading system many times in previous questions and answers. Then many friends were very interested in my system and wanted to know what my system was like. I also replied to this friend at that time. I said that it would be a long story, because the trading system is a very large System, I said that the main core content of my trading system is the turtle trading rule, but I changed the parameters. In the rule, it is a breakthrough of 20 days. I changed it to 15 days. Then there is an increase strategy in the rule. I choose not to Increase the position, the other turtle rules are no different. But even if I say this, I believe that not many people will really use it. Just look at the rules of knowing it. If such a classic book is just left there, not many people will use it. The reason is also very simple. First, the large retracement is very difficult to persist. Sometimes it is normal to not make a profit for a year or two. The second is that it needs details, just like a person whose main body is placed there, without sight, hearing, taste, cold, heat, touch, and emotional changes, cannot be regarded as a normal person. The same is true for the trading system. These details take a long time to polish. It also took me more than a year and nearly two years to complete it, and it is precisely these details, as long as you have a little omission, the market will crazily attack this weak link when you are not paying attention. For example, fund management, how to manage it properly? I said that a single product should not exceed 2% of the position, and the overall position should not exceed 10%. How many people do this? There will always be people who say that the capital utilization rate is low, the efficiency is too low, etc., so this is the understanding of details, and everyone is different. Not necessarily mine is right, what you find comfortable and manageable in the end is right for you, and this takes my time, and the time is not short, and it is not easy for ordinary people to persist, so this difficult. The fourth difficulty is high expectations. Many people have good methods in every way, they have a trading system, and they have done a good job in every link. But I can’t pass this level. Why is the expectation high? Because this is the original intention of most people to trade the market. If you don’t make a lot of money in the market, why bother? This is the thinking of many people, so he has great expectations for his trading, but once he fails to meet this expectation, his mentality will be affected, and it may affect the way of operation. For example, a sudden heavy position, or a lucky one-time carry, as long as it occurs once, there is a high probability that all efforts will come to naught, because you do nothing but two results, the first failure, then no matter the heavy position or dead carry once, you will be punished It caused a lot of damage, and the profitability of your trading system may not be that strong. The damage this time is very exhausting, and you may not have the patience to maintain it. The second is that you succeeded this time. Since you succeeded, you have tasted the sweetness. There will be a next time, after all, there will be one that cannot be escaped. So from the source, we should lower our expectations, just trade according to the rules, leave everything to the market, and let the trend give you the final answer. Are you satisfied with this answer?

Why does non-farm payrolls have a greater impact on gold than other commodities?

the faith that i hold on to in my dreams

The U.S. non-agricultural data we usually refer to actually refers to the heavyweight economic indicator "employment situation". Market Sensitivity: Very High. What it means: The most eagerly awaited economic information. Release time: 8:30 a.m. ET; generally released on the first Friday of each month, with data covering the month that just ended. Frequency: Once a month. Source: U.S. Department of Labor, Bureau of Labor Statistics. Correction: Modifications can be very large. Each published data revision is usually looked back two months. The government benchmarks the business (or payroll) survey every June. The base of the household survey changes little, and is adjusted every ten years or so. No economic indicator roils the stock and bond markets quite like the jobs report. First, the employment situation report is very timely, coming out just a week after the month under review. Second, the report is rich and specific in terms of the job market and household income, information that is useful for forecasting the economy. And three, let's face it -- we're talking about the welfare of American workers. Wages and salaries derived from employment constitute the main source of household income. The more workers earn, the more they buy and the more they move the economy forward. If fewer people are working, spending falls and businesses suffer. Since household spending accounts for 2/3 of the economy, you can see why the investment community is watching the jobs report so closely. There's another reason the jobs report can dominate financial markets so much: The jobs numbers often surprise people. If there is little other information for the month, it will make it difficult for experts to forecast unemployment. The highlight of the employment situation report is of course the unemployment rate, the percentage of the workforce that is not employed. What do we mean by social labor force? It is defined as all employed and unemployed persons over the age of 16 (except those in the military, prisons, mental institutions, and nursing homes). Economists measure monthly changes in the job market from two different sources. One is based on the household survey (household survey), which is conducted by the government to conduct telephone and letter interviews with households. The other is the establishment (payroll) survey, which asks companies directly about recent staff changes. Putting these two together paints a broad picture of the labor market and, more broadly, the state of the economy. 1. The impact of US non-agricultural data on gold trading: The non-agricultural data of the United States has a great impact on the foreign exchange market, the metal market, etc. From the previous data, the large fluctuations in the market on the night when the non-agricultural data is released occupy the main trading day. , and even full of operations that lure more and less space. So be extremely careful. Since non-agricultural data may change the market trend and direction after the release, this makes it impossible for any investor to avoid it. Therefore, it is recommended that investors analyze the impact of real data by comparing the expected value announced by the market with the previous value. This is the only way to grasp the target. The trend of gold is closely related to the data reflecting the trend of the US dollar, and there are several non-agricultural changes in the US that change the trend of gold. 2. Grasp the impact of non-agricultural data on gold First of all, non-agricultural data is very important. Judging from previous trends, it will cause large fluctuations and shocks in the market. In many cases, the market fluctuates violently. The fluctuation of gold on some non-agricultural days has reached about 50 US dollars. Therefore, we must pay attention to the impact of non-farm on the market. Secondly, before the release of non-agricultural data, you should pay attention to the changes in market trends. No matter what variety (foreign exchange market, precious metals market, commodity market, stock market, etc.) is facing the test of non-agricultural data for the continuation of the trend, so the trend of the varieties you make To what extent has it developed? For the judgment of the trend development process, how long can it be concluded? Non-farm payrolls are likely to change this trend. Third, after the release of the non-agricultural data, we must stick to one direction and do a good job of stopping losses. Appropriate enlarged stop loss is necessary. At the same time, the non-agricultural market will form false breakthroughs near key supports and resistances, which should be avoided. Since the non-agricultural data is released at the beginning of the month, it is generally used as the keynote of the economic indicators of the current month. Among them, the non-agricultural employment population is an important data to estimate industrial production and personal income. A decrease in the unemployment rate or an increase in non-agricultural employment means that the economy is improving and interest rates may be raised, which is good for the dollar and bearish for gold; otherwise, it is bad for the dollar and bullish for gold.

How to prove that technical analysis is effective?

jiaoyi golden eagle

First of all, let's talk about it, what is technical analysis?The definition given by John Murphy, the author of "Technical Analysis of Futures Market": Technical analysis is the study of market behavior with the purpose of predicting the future trend of market price changes and using charts as the main means . "Using charts as the main means" means that in the highly leveraged foreign exchange gold market, most traders use technical analysis. Think about it, in this highly leveraged market, there are several traders who do not use charts as the main means ? It is recognized that technical analysis first originated from Dow Theory, which has a history of more than 100 years. Afterwards, Gann Theory, wave concept, moving average, various indicators, etc., have been as numerous as the vast stars; K-line theory, in fact, originated earlier, nearly three centuries. If technical analysis is invalid, how can it persist and last for a long time? So how to prove that technical analysis is effective? It may be easier to explain with an example, just like adolescent boys and girls, you tell them how wonderful things are between men and women, they can't understand anyway, so how can you prove it to them? The only way is for them to experience it themselves when they become adults. Do they still need to prove it after the experience? Similar to this, the best way to prove that technical analysis is effective is to see is believing, to test it yourself, the market forms such as: W top-bottom, triple top-bottom, head-shoulders top-bottom, triangle, box shape, etc., and the price evolves in a trend way , K-line shape, horizontal support pressure, etc., these are all facts before our eyes, do we still need to prove it? Let me tell you about my own personal experience. Thinking back to the first two years when I first entered the market, it should be said that trading was based on fundamental analysis at that time, and what I did was paper gold, not margin trading. At that time, I searched for fundamental news and news every day, and then analyzed and traded. Once I saw reports from major banks such as JPMorgan Chase, Citigroup, etc., predicting that the future price will go up to 4,000, 5,000, and even 10,000; I thought that with their strength, there should be no mistakes, and the analysis was methodical. , and then bought near the first red arrow 1565, waiting to make a fortune, feeling very happy. However, after a week, the price began to fall, and it was a kind of free fall. I stared at the market, and my mood was like a stone falling from a high altitude. It felt like falling into an abyss. You're trying so hard to grab something, but there's nothing to grab, just keep falling... In the end, I simply turned off the computer and stopped watching... Fortunately, after nearly a week, the price rebounded to around 1485, and then gradually walked out of a circular top. At that time, I didn't understand any technology, and I didn't even know the most basic K-line shape, so I simply and vaguely felt Seeing the physical nature of the price, it was a bit parabolic. After that, I closed my position and backhanded short. I didn’t know what W bottom was. I finally entered the market at the position of the yellow arrow, which was considered to have recovered a large part of my capital. In fact, I realized the effectiveness of technology subconsciously that time, but I didn't really realize it at the beginning, and then I slowly moved towards the path of pure technical analysis... Because trading on pure fundamentals is really unreliable for our small retail investors. As you mentioned, another big guy said that it is reliable to follow the entry time and price of the institution to trade. The question is, as a small retail investor, how can you know the entry time and price of the institution? Only through technology, because no matter how the institutions cover up and hide, their funds will inevitably leave traces on the K-line if they want to enter the market, so technical analysis is the method that is really suitable for our small traders, because the market is important for every trader All are fair. In fact, there is no need to worry about how to prove the effectiveness of the technology, because it is too obvious. Instead, you should think about how to build a stable trading system with positive expectations. If you really have no idea, you can take a look at my The articles in the "discussion" are almost systematic content, combining "potential, position, and state" to build a reliable system, I hope it will be helpful to you.

What is the core secret of your profitable trading? Can you share it?

guochao guohui

The core of what I want to ask is the meaning of "tools and strategies". It's like drawing a hand of cards. How to play this hand to win is the core. In trading, what you need to know is how to design your own "cash machine", that is to say, what core profit do you rely on? Turn the transaction into a complete planned planting and harvesting. What do you earn money from? What is the core secret?

Why do we still fail to trade after learning so many trading indicators?

睡个好觉

A trading indicator is a tool. Whether it is good or not is a result. There are still many processes to be completed. No one will guarantee that you can achieve your goals with the tools. There are too many requirements to do a good deal, and I personally feel that we still have to work hard at the macro level. The actual influence of technical things such as trading indicators is limited. Therefore, you must have your own trading system or system strategy, which is the biggest support for you to achieve a good job. In short, a qualified trading system should have the following points: First of all, it can reveal the main direction changes and turning points of the market. Grasping the main market direction is actually very simple. It is possible to track the development of the trend with some moving average systems, but it is difficult to change the market direction. Often we can see the development of the trend after the market goes out for a long time, but at the beginning of the change or It is important to enter relative to the position of the launch point. This often requires the application of comprehensive technologies, which cannot be achieved by a single technology. Second, the application cycle should be clear. There are many opportunities in different cycles, and any level is effective, which seems to be the case in theory. In practice, there are relatively large differences between different cycles, such as market trends, transaction frequencies, cost losses, and profit and loss tolerances. The mentality of challengers differs, etc. In a good trading system, the main cycle and the auxiliary cycle should be clarified, rather than exhaustive. Investors must first master a method before proceeding to advanced expansion. Third, the application logic can be repeated. We don't just want to make profits in stages, we must make long-term stable profits. This method must grasp some essential laws of the market. Of course, it cannot be all, but only some effective laws are enough. Fourth, the trading adversity period is moderate and reasonable. When the trading method encounters unacceptable market conditions, there will be continuous losses, and the chance of winning the transaction will decrease. If the trend trading method basically maintains the 40--50% chance of winning, it is still okay. If it is lower, the adaptability of the method will be reduced, and the execution becomes very difficult. big problem. If further opportunities are selected, the staged winning probability can reach 80% or more, so this trading method is generally a relatively pleasant experience. Finally, the trading system must be integrated with itself. What standard is fusion? Most traders may have to grope for many years to realize that this is also the most difficult part of trading. Trading is a process of self-cultivation and self-knowledge. A set of methods suitable for you should not feel too tiring to use, and you must satisfy your trading desires to a certain extent. For example, you like the pleasure of short-term profits, like seeing profits in your current account, and like accumulating small wins into big wins, then your The transaction cycle cannot be too long, and a certain transaction frequency must be maintained. The winning rate cannot be too low. The disadvantage is that in the big market, it may be difficult for you to obtain a one-time huge profit by continuing to hold or increase your position, and you can only obtain a certain amount of income by continuing to participate in the trend in stages. You cannot easily change your trading mode by being disturbed by some so-called miracles or profiteering stories in the market. When the above conditions are met, the rest of our time is to continue to apply this trading method and continue to realize its potential. First of all, the winning rate can be gradually improved, and the entry and exit can be more accurate. The profitability of a single quotation can also be improved, the overall profit efficiency can also be improved, and the user mentality will become more and more mature. In this way, not only technical indicators but also other analysis and prediction tools have become an integral part of your trading system, and it is logical that you have done a good deal.

Anyone trade with a new broker

sig

I'm wondering if there is any possibility that I can gain something by always tradingwith new brokers. I know it's risky, but at least they can give me some bonus. But I just don't know how to select....

Broker Discussion

How many people like Ma Baoguo are there in the trading circle?

江州司马

Well, friends I am Jia Dashi, the master of foreign exchange trading Hunyuan Just now a friend asked me: "Jia Dashi, what happened to your kidney?" I said what's going on? Send me some screenshots I saw, oh, Minamoto Raiji Sada There are two young men in their 30s with tongue-tied tongues. One has been in business for seven or eight years, and the other has been in business for five or six years. Tamun said, alas. . . One said that I was studying fundamentals every day, and the system was not perfect. Jia Dashi, can you teach me the Hunyuan Kungfu, alas, help me improve my trading system. I said yes. I said it's not good for you to study dead deals every day He is not convinced, alas. . I said kid, compare your two accounts with mine, he can’t compare He said it's useless for you, ah, tongue-tied I said I am useful, this is the energy, the traditional trading is about the energy, small and big, more than 200 British traders, don’t move my account, take a breath He said he would try it with me, and I said yes. well. . . When I said he slapped, he stood up. Soon! Then it comes up, a set of ultra-short-term, ah, whispering tongue, a set of mid-line orders, and an EA software. After going out, it is natural that the traditional transaction ends with the order. I placed an order with a full position and did not place it. I smiled and was ready to stop Because of this time, according to the point of traditional trading, he has already lost If this order is strong, it will dry up his account with one order. I put the mouse on the interface and did not place an order. He also admitted that I first thought of filling the warehouse. He didn’t know that I placed the mouse on the order button. He admitted that my trading ideas are stronger (smile) ah, I stopped placing orders when I stopped He suddenly patted me on the shoulder and talked to me (smiling) ah, I was careless, no flash Alas, his Zuo Quan gave me a rub on the arm and ordered an order, it’s okay Dan Taiye said, ah, he also said in the screenshot. After more than two minutes, he was in tears and covered his eyes I said Tingting, and then two minutes later, ah, more than two minutes later, hey, the position was liquidated I said boy, you don't talk about martial arts, you don't understand Jia Dashi, I'm sorry, I'm sorry, I don't know the rules, ah, I am, he said he was a gangster He is not a random man, buying, selling, placing orders, etc., well-trained Later he said that he had practiced skills for three or four years, ah, it seems that there is a bear These two young men don't talk about Wude, come, cheat, come and attack, my 69-year-old comrade, okay? this is not good I advise this young man to reflect on the rat tail juice Don't be so clever again in the future, little clever Well, peace is the most important thing in transactions, martial arts should be emphasized, and no fighting in the nest should be avoided, thank you friends! ============================ Pay tribute to Mr. Ma, with more than 200 likes, and then Duan Pine Cone Bouncing Five in a row.

What would you say to yourself if you went back to your first day in trading?

lao bian discusses gold

The four heart-wrenching moments of trading—buy at a high point, sell at a low point, reverse when you stop loss, go unilaterally against the trend when you die, which one makes you unable to bear it?

tianji road

Buy at a high point? Sell at a low point? Reverse as soon as the loss is stopped? Go unilaterally against the trend once you die? Are these operations all familiar? Yes, this is basically a compulsory course for every new investor, and it is also a nightmare! Even more demons! The reason for these four situations is often due to the weakness of human nature: The reason why you buy at a high point is because the market sentiment is high at that time, and your greed is at work; The reason why you sell at a low point is because at that time the market is turbulent and your timidity is playing tricks; The reason why you reverse as soon as you stop the loss is because you have hatred in your heart; The reason why you go unilaterally against the trend is because you have delusions in your head. Only by breaking through these four barriers can you get the "holy grail" of the trading market; but in fact, how many people have been unable to get out of this vicious circle. What I have experienced the most is the golden battle back then. At that time, gold rose all the way under the stimulus of news such as the increase of holdings by the central bank of China. People who bought around me made a lot of money. I couldn’t stand the temptation. I finally entered the market at a high level of 1900 US dollars in 2011 to do long. I didn’t expect the price of gold to turn around immediately. It crashed and broke my stop at $1600. So I immediately stopped the loss and got out of the market. I never thought that it would immediately rebound to 1,800 US dollars, and then it has been fluctuating around 1,600-1,800 US dollars. Firstly, I couldn’t bear the temptation, and secondly, I fantasized about getting up wherever I fell, so in 2013, I entered the market at around $1,600, thinking that I would be out when it reached $1,800; I didn’t expect that the price of gold would break out of the box immediately The body went down, and fell below my stop loss of $1,400; because I learned the lesson of being weak when I stopped the loss last time, this time I did not stop the loss but increased my position and carried it to death. This obsession will bring endless Consequences: The price of gold did not rebound this time, but fell step by step. When it finally fell below $1,100, I could only leave the market with tears in my eyes. I was both greedy, angry and even more infatuated, and the result was that there was no green hill left. Even though gold rose all the way from around 1,050 US dollars, until now it has regained the 1,800 US dollar mark, but everything has nothing to do with me. This is the sad lesson of a person who went against the trend and carried out liquidation.

What is the core nature of the transaction?

jiaoyi golden eagle

For friends who do transactions, they often think or talk about a question, that is, what is the core essence of transactions? Some people say that it is to take advantage of the trend and light positions; some people say that it is to follow the intrinsic value; some people say that it is to break through the range and enter the market... What they said is correct, but these are only at the level of methodology, not the essence. The core essence of trading is the game spread. Why do you say that? Let's first look at what is a transaction? It is a sale, one buys, one sells, and when they are matched, it is a transaction. What is the purpose of our transaction? Just to make money. The process of a profitable transaction is to buy low and sell high, or sell high and buy low; the price difference is the profit. Whether you are in the stock market, the futures market, or the gold currency margin market, if you want to make a profit in a transaction, you must play the price difference and realize the profit! Even if many fans of value investing in the stock market want to make a profit, they still have to play with the price difference-buy low and sell high. Not to mention the highly leveraged transactions in the futures market and the gold currency market, which are also buying low and selling high; or selling high and buying low. Even for enterprises, factories, stores, and vendors, their profits are formed by the aggregation of price differences in each transaction, large or small. Therefore, the core essence of trading is always the game spread. Then the question comes, how can the transaction better realize the price difference? Or what is the key to making money in trading? When we talk about buying low and selling high (or selling high and buying low), we actually have to solve two problems—buying well (low) and selling well (high). If you don't know when to buy and when to sell, you will never be profitable. In other words, if you earn today and lose tomorrow, you always earn less and lose more, but you will never be able to make stable profits, or even survive in the market. For example, if you buy well but sell poorly, you will not make any money, or your profits will often shrink sharply. Or if you buy poorly and sell well, sometimes you can make some money, but the difficulty is greatly increased. Whenever the bull market is at the top, that is, when the market is the craziest, it is often when a large number of retail investors enter the market, and they are eventually trapped on the hillside or can only cut their flesh out of the market. The most fundamental reason is that if you don’t buy well, it’s hard to sell well. Therefore, it is necessary to buy well and sell well. In other words, the entry and exit must be just right. Everyone understands the truth, so how to do it? I have summarized the following 4 points to share with you, hoping to inspire you: 1. Build a system: build a trading system with positive expectations. 2. Formulate principles. 3. Observe discipline. 4. Constantly cultivate the mind and optimize the system. Let's look at the specific steps: 1. Build a system: build a trading system with positive expectations We all know traders who don't have a system, they trade by feeling when they trade. You ask them why they are long or short at this price, and the answer is always one reason today, and another reason tomorrow, with no consistency; what's worse, some people still have a blank look-they just feel that it is going to rise or go up. fell... The funds of traders without a system are like a mob. No matter how strong their funds are, they will be short-lived. It is only a matter of time. Systematic traders, on the other hand, have some rules when trading. Although they may not be able to make long-term stable profits, at least they have a consistent basis for entering and exiting the market. So what is a trading system with positive expected value? The so-called positive expected value trading system is a trading system that obtains a positive result after trading according to the system rules for a relatively long period of time. In other words, it is a trading system that has been proven to be stable and profitable. So how can we build such a trading system with positive expectations? Two ways: 1) Learn from someone close to you or someone you know--surely someone who has achieved success in this area and is willing to teach you. That is, this person is willing to teach you his trading system with positive expected value without reservation. This requires background, luck, fate, etc., which cannot be met. But this is a "shortcut". 2) Build it yourself. Since there is no such "master", then everything can only depend on oneself. But this is destined to be a road full of hardships and bumps. And the process may take a lot longer than you think. There are many ways to make a profit in trading, but countless people who use the same method to trade and lose money. Whether it is fundamental analysis or technical analysis, a system that can make long-term stable profits must include but not limited to the following three elements: * A set of methods. This set of methods is a tool for evaluating when to enter, exit and increase or decrease positions. * risk control. Various unexpected situations will inevitably occur during trading, and countermeasures must be taken to minimize risks in time. * Money management. It must be very clear what is the proportion of funds in a single trading position and what is the proportion of funds in a total position. These must be designed and allocated before the transaction. Good money management can help you survive in this market longer. When you have built these elements, the next step is to continuously test, verify, and then polish it into a profitable system through continuous trial and error. As for how to polish it, it depends on the method you choose and your personality. No one can do it for you, you can only rely on yourself. This process must have been accompanied by great pain and frustration... Until one day, you finally built this trading system. If you compare the trading system to a car, then congratulations, you have built yourself a sports car with superior performance, and you can drive it in dangerous situations. financial markets. 2. Formulate principles You may be thinking, can't I start the money printing machine now and collect money lying down? Then you are thinking too much. Even if you have the "Dragon Slaying Knife", you may not be able to become a martial arts master. Although you have built yourself a sports car that is much better than others, but think about it, in your daily life, can you drive this sports car on a rampage and run amok? By the way, no. You have to abide by the traffic rules, otherwise it will be difficult to guarantee that you will not be killed in a car crash! So in trading, even if you have a good system, you must also formulate trading principles. Trading with a system and no principles is not much better than having no system. Kant said: "Man makes laws for nature". You also have to legislate for the market . Just like the important role of the constitution in ensuring the stability and long-term stability of the country and society, your trading principles are the "constitution" of your trading system. This "constitution" is generated in conjunction with your trading system, it is the foundation of your trading system, and it is the fortress for your survival in this so-called "the most difficult industry in the world". In fact, you have already generated certain principles while building the system, but these principles are not specific enough and comprehensive enough. Now it is a comprehensive formulation of principles at the strategic level. For each position you trade, under what circumstances you can enter the market, under what circumstances you must exit the market, under what circumstances you cannot enter the market, under what circumstances you need to reduce your position, etc.; clearly formulate the principles in all aspects, the more specific and more accurate you are. The clearer the better. When we review the market, we always feel that the market is so clear at a glance; but at the moment, the market is always changing, and we always feel specious and ambiguous, don’t we? Through trading principles, a lot of market noise can be eliminated and the trading winning rate can be improved. Emotions also often influence our behavior. Think back, how much loss, loneliness and pain have you endured wandering alone between heaven and hell? How many sleepless nights have you passed? In the depression and anger again and again, the transaction is made worse... Trading principles can also eliminate emotional interference and make transactions more rational. When you have formulated a comprehensive trading principle, you will find that the frequency of your trading has become lower, which is a good thing-the door to wealth has been opened to you! 3. Observe discipline Now you understand very well that as long as you make good use of the trading system and enter and exit the market according to the principles, you can make stable profits. From now on, you can sit back and relax! Then you underestimate the weakness of human nature - greed and fear ! We stare at the board every day. The red, green and green K-lines represent wealth, and there are devils and angels hidden in each line. They constantly lure us: "Come in, this wealth is yours. !", constantly tempting us to break the trading principles to enter and exit the market... You may ask, will the principles you set up not be followed? Think about it, how many New Year's resolutions, reading plans, and fitness plans have you made? How much did you do again? So we need to be disciplined. There is a system and principles, but if you don't follow the discipline, your funds will only be relatively short later. Because every mistake you make could be fatal and set you on a path of no return! In trading, to put it simply, discipline is execution. Once the principles are formulated, they must be strictly enforced. This requires us to be highly self-disciplined. Execution, or how to cultivate self-discipline? You can use the little things in life to cultivate, such as what time to go to bed every day, when not to use your mobile phone, or to implement a fitness plan, etc. "If you don't sweep a house, why sweep the world?" When you develop iron-like executive power, you can clearly see the wealth behind the door beckoning to you! 4. Constantly cultivate the mind and optimize the system 1) Constantly cultivate the heart Don't expect to be able to roam the rivers and lakes after learning a nirvana. People who can really walk the rivers and lakes and stand tall for a long time may not have many nirvana skills, but they must be people who have been practicing internal strength for a long time and then have deep internal strength! The inherent human weakness of human beings cannot be overcome by us in one or two years. How many talented traders finally came to a tragic end because they could not overcome their own demons... The examples of Livermore and Nick Leeson sound the alarm to us from time to time—traders who don’t pay attention to cultivating their hearts will repeat the same mistakes from time to time. Even if they have excellent equipment, they only live a little longer . Constantly cultivating the heart is the homework that every trader must do in his life. 2) Continuously optimize the system The market is like a living body that will continue to evolve. Institutions, consortiums, traders, retail investors, etc. participating in the market are playing a game of survival of the fittest, and those who can finally stay in this market are elites who are constantly learning and evolving. Therefore, we must continue to learn and optimize our trading system to adapt to the continuous evolution of the market. (It should be noted that optimizing the system is not transforming the system. Optimizing is taking a little bit of measures to make it better; transforming is hurting muscles and bones, and often the gains outweigh the losses.) "Heaven is healthy, and a gentleman strives for self-improvement." A trader who can make stable profits in the financial market must be a person who has done a good job in the above four aspects, and is still learning and evolving. — final words — You may be a little worried, why is it so difficult to make money from trading? Yes, it is so difficult to make long-term stable profits in this market, and this is the only way to go. Or, you don't enter this market. Making a living trading has never been easy. We are fighting in the market with a kitchen knife and troops with submachine guns. In addition to learning to hide and protect ourselves, we also need to learn to wait, be willing, etc... When the market does not give you a chance, you must endure loneliness and suffering; when the market gives you an opportunity, don't doubt or feel anxious, but act decisively and go forward; when the market does not give you a profit, you must react quickly and immediately Admit the compensation; when the market gives you a profit, accept it as soon as it is good, and don't try to let the tail of the fish go. Trading is like life condensed. When you realize the true meaning of trading, you also understand the true meaning of life. Trading makes life more profound and exciting! Let your mind be more free!

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