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How to Trade the "Double Top" Chart Pattern Like a Pro

汇汇你

There are some trading patterns in the market that are widely used by traders all over the world and double top trading is one of them. This is the easiest and clearest way to identify potential sell trades in a trade. Most novices still have a blind spot for it. Let's talk about the double top trading mode in detail below. // identify the double top pattern A double top is a bearish reversal pattern that usually forms at the end of a bullish trend. Two consecutive rounded tops at about the same height complete the pattern. The first round top generally forms in an obvious resistance area. ①First high ②Second high ③Neckline What is currently happening is that buyers are trying to push the price above the resistance level at ①, but are unable to do so because sellers have entered the market. The buyers made a second attempt, but the buyers were unable to break through the new high shown at ② as the sellers again entered the market massively and overwhelmed the buyers. When it became clear that buyers were unable to push the price above the resistance level, the price reversed to a downtrend as more sellers entered the market. Note: Price must break the neckline of the pattern for it to be a valid double top pattern. Once you identify the pattern on the price chart, you can look for potential selling opportunities. // The psychology behind the double top pattern A double top pattern occurs at a major resistance area. This pattern suggests that when price action reaches an obvious resistance zone, buyers are afraid to buy because of the resistance. On the other hand, sellers will choose to sell in the same resistance area. After breaking out of the first high, the price action falls back to an important support area (the neckline), at which point the buyer trading psychology tends to strengthen buying to reach new higher prices. But when price action reaches the resistance area again, buyers fail to break new highs, sellers gain control, and price action begins to move in the opposite direction, forming a double top pattern. // Double top pattern – trading strategy There are two ways to trade the "Double Top" chart pattern. To make sure the strategies we share are the ones that work, we backtest them again and again. 1. Double top pattern + bearish pattern Traders in the market widely use a variety of bearish patterns, the most commonly used bearish patterns include engulfing pattern, evening doji, shooting star, three crows, etc. This strategy is to identify the bearish formation of the second peak. If you find any of these, you can go short. Make sure to place your stop loss above the resistance line. recognition pattern In the EUR/JPY chart below, the formation of a double top pattern can be clearly seen. As shown in the chart below, the price action showed a bearish engulfing candle pattern immediately after the second top. This shows that the sellers have fully absorbed the buyers and it is time to go short. Stop loss and take profit placement Entering the market at the close of a bearish engulfing candle with a stop above the resistance line is the most logical way to maximize profits, once this is spotted, the price action has little chance of going up. As mentioned earlier, the first take profit is at the neckline of the double top and the second is at the double of the entire pattern. It should be noted here that please determine the position of the target price according to your trading style, and you can also close the position anytime and anywhere. 2. Double top pattern + RSI In this strategy, pair the Double Top pattern with the RSI indicator to identify accurate shorting signals. RSI stands for Relative Strength Index and it is a momentum indicator developed by J. Welles Wilder Jr. in 1978. When the indicator reaches the 70 level, it indicates that the market is overbought and when the indicator reaches the 30 level, the market is oversold. The strategy is simple, when the price action hits the second peak and starts to oscillate, look to see if the RSI is in an overbought market condition. If yes, it can be considered a potential sell signal. recognition pattern We have identified a double top chart pattern in the GBP/CHF currency pair below. In the image below, we can see that the first and second peaks of the pattern are very strong. When the price action approaches the second peak, the price immediately falls and the RSI is in the overbought area, so it is safe to short. Stop Loss and Take Profit When the conditions are met, you can go short, set the stop loss above the entry , and take profit in the support area of the higher time frame. Overall, this is a trade above 100 pips, and if there is not enough room in the support area, it can be closed when the RSI reaches the oversold area. in conclusion Trading up and down patterns is an easy way to make money. Some models have greater hidden risks, but the double top does not. It offers some of the best risk reward entries, and this pattern works on all trading time frames. Finally, I would like to remind all traders to make sure that they truly understand the logic behind the model before trading , so as to avoid unnecessary losses. Good luck with the transaction!

Forex Knowledge Encyclopedia

Have you used MACD and KDJ in this way?

小富的方圆几里

Hello everyone, I am Xiao Fu MACD has always been an indicator that has been discussed more, and it is also used more in the establishment of trading strategies, and the effect is also good. KDJ is also an indicator that many traders use more, which has a lot to do with KDJ's more sensitive response to the market in trading. Today, Xiaofu will talk to you about the trading strategy of MACD combined with KDJ. index: 1. MACD (both single-line and double-line) 2. KDJ 3. Double Bollinger track (a default parameter, a time period of 50 deviation 3) Order entry conditions: (suitable for periods above 15 minutes chart) 1. MACD breaks the zero axis 2. Bollinger middle rail crossing 3. If the MACD breaks the zero axis upwards and the Bollinger track crosses the middle track, then KDJ can enter the market every golden cross. Breaking down the zero axis is the opposite. Prohibition Conditions: The MACD breaks the zero axis downward, and the big Bollinger rail closes. Entry details note: If the MACD breaks the zero axis upwards, the Bollinger middle rail crosses, and if the KDJ is below 30 at the golden cross, then the take profit can be set larger. If the Jincha chasing order or opening a position that is greater than the KDJ value of 70, the stop profit setting should be smaller. Because you have to deal with reversals at any time (the opposite is true for dead crosses). This kind of situation occurs more often in the minute period, and rarely occurs above the 1-hour chart. Note: It is invalid when encountering data. Summary: MACD looks at the direction, KDJ looks for a buying point, the double Bollinger filter consolidates and strengthens the determination of the direction! That’s all for today’s sharing, I hope it can inspire you all. Of course, there are better suggestions for improvement. I hope everyone can leave a message to tell me that we can make progress together. Question: How do you usually match KDJ? ? Leave a message and tell me! !

Foreign exchange trading thinking

Why can't we control frequent transactions?

weak water scoop

Many people know that frequent trading is not allowed, and that frequent trading is a taboo, it is wrong and should be avoided. But we tell ourselves again and again that we can’t trade frequently anymore, and we will chop our hands if we trade frequently, but we continue to trade frequently again and again. Many people blame their frequent trading on their greedy mentality. Is this really the reason? I don’t think so. I think the fundamental reason why most people can’t control frequent trading is that there are no clear trading rules. There are trading rules but they are vague and not detailed enough, that is, there is no well-optimized trading system. This can lead to many opportunities that appear to be opportunities but do not appear to be opportunities. Especially when prices fluctuate rapidly, it is easy for us to regard irregular fluctuations as trading opportunities under the emotional background. We know that the market will go up and down all the time, so it is very easy for us to feel that every moment is an opportunity. Rise is also an opportunity, and the road is also an opportunity. Anyway, as long as you think that the screen is full of opportunities, you want to make money all the time, so frequent transactions occur. In fact, sentiment is affected by the market. It is easy to be pessimistic when the market is falling, and too optimistic when the market is rising. Emotions are greatly affected by market fluctuations, so chasing ups and downs, or hunting for bottoms and peaks, is impulsive trading. For most people, especially for beginners, this is the main reason. If there is no basis, the natural society will be chaotic; if there is no obstacle to escape, the operation will be chaotic. If there are no strict rules, no matter how many oaths you swear and how many hands you cut off, you will still commit the crime next time. Under the condition that there are no rules, you swear to reduce frequent transactions, which is not wishful thinking. I have a deep understanding of this in my many years of trading. Only after countless times of pain and regret, I will improve after I have trading rules that suit me. Most people, including me who just entered the market, think that as long as the market goes up or down in their world, it is an opportunity. Because as long as there is a rise and fall, there is a price difference, and there is a profit if there is a price difference. And the market is going up and down all the time, so there are opportunities all the time, why can't you operate all the time? At this time, it is difficult to talk about reducing the frequency of transactions, because they have no rules and systems, and there will be many profitable orders in frequent transactions, how to reduce them. Even reducing the frequency of transactions will not increase their success rate. If the frequency is low, the success rate is still very low, and failure is inevitable. For many veterans, although they have established trading rules to some extent, they are not detailed enough, clear enough, and there will be many opportunities in the market that seem to belong to you but do not belong to you, so at that time, it was difficult to clearly understand We know whether it is own chance. Most people are afraid of missing opportunities and have a natural urge to chase profits. In the face of crazy profits, people will forget the risk and choose the profit. So there will be too frequent transactions. Fundamentally, the primary reason for frequent trading is the lack of a detailed and effective trading rule. Novices are most likely to make mistakes and veterans are also likely to make mistakes. Therefore, it is best for us to take every transaction seriously from the very beginning, and create trading rules and systems that suit us as soon as possible.

Comprehend the transaction and record the growth

Why can't I stop trading frequently?

三十还惑

We all know that frequent trading is a taboo in trading. Trading is inherently a probabilistic event. Often the more you trade, the more mistakes you make. Many people always don’t want to let go of any trading opportunity and want to seize every transaction. Opportunity, but it always backfires. He said that he would no longer trade frequently, but the result was slaps in the face... The root cause of frequent trading is that there is no systematic trading method of its own, no clear trading rules, or the trading rules are not logical enough, and the mind is as muddy as muddy, unable to distinguish whether the market is good or bad, and unable to grasp the market. Opportunities, often all information as a trading opportunity. Then there is emotional trading. People’s emotions are easily affected by the market and others. Once the market changes, their emotions will fluctuate with the market, or in some order-calling groups, they will be affected by the order-callers or other traders. Make inappropriate transactions. If you don't calm down, you will just follow the trend, and your operations will be chaotic, which will bring you losses. Finally, there is the problem of mentality. Greed is the culprit. There are too many problems caused by greed, and frequent trading is only one of them. In the market, opportunities are everywhere, and it is difficult for us to distinguish whether it is right or wrong in a greedy state of mind. Most people are afraid of missing opportunities for their own opportunities, so they would rather lose 9 times than let go of that profit opportunity. In the face of high profits, people forget about risks and choose to trade frequently. Profit is a process event, not achieved overnight. We must learn self-control in trading, learn to trade according to rules, and restrain human nature.

Free Trader Center

If there are truths to trading, light positions are one of them

江州司马

If there are truths in trading, then light storage must be one of them. Traders must lower their profit expectations in exchange for a higher probability of winning. Therefore, light storage is not only a requirement for risk control, but also a requirement for profitability. Here is a more important question, that is, how low should the profit expectation be? Obviously it can't be too low. To find out, I'm running a 24-month experiment. At the beginning, I tried to make a profit every month, with a target of 3%-5% per month, but this was too difficult, and I failed in the third month, with a floating loss and no profit for the month. Later, the requirements were further lowered, no longer pursuing monthly profits, but an average of 3%-5% per month, the trading strategy was more flexible, and some orders were held for nearly 4 months. The average monthly profit even reached 8% at one point. At this time, an interesting situation happened. Even though I was used to the storm, I actually wanted more profit in my heart. The pursuit of a stronger Olympic spirit depends on the occasion. I know this is a demon that hinders me, so I decisively put the brakes on the transaction. The monthly average of 8% is obviously too high and must be lowered. Judging from the experiment and the current situation, there is no pressure on the monthly average of 3% in profit expectations, and a little higher is fine. No matter how high it is, it will really affect the mentality. Because it is a leveraged transaction, there is actually no need to worry about profits. Even if it is a very low position, the accumulated income month by month is still considerable. I know that there is a mentality now, that is, small funds must pursue higher returns, trade heavily, and wait for large funds before seeking stability. This kind of thinking is so wrong that it can be evaluated in four words, the Taoist heart is not firm. The idea of trading must be consistent. Wouldn't it be possible to make a lot of money with a small amount of capital? That's really the case. We are also doing transactions. Because of the small scale of small funds, it is impossible to earn too much, so the threshold for transactions is not low, and it will not last long to maintain transactions based on profits. Regarding profit expectations, after the 24-month experiment is completed, I will write an article to summarize. At present, I can only give some personal suggestions. No matter what expectations you have for the transaction, please expect the profit to be lower than 30% per year. Maybe you have rich experience, but it is best not to exceed 50% per year too much.

Forex Trading Essay

Strategy system setup very important for successful traders

saifalhilali

In forex market any trader need a strategy or setup or system to follow with rules to be successful why we need this to actually control our behavior and our discipline to follow these systems and to check again later if this system is making good profit or is not real good as you expected and you can tweak it and change it later on when you review your journal so any trader want to be professional you have to have some sort of system or setup to follow.

Road to consistent success

How To Determine What Type Of Forex Trader Are You?

fong zi cheng

Determining your Forex trading style involves assessing your time commitment, risk tolerance, goals, and market knowledge. Here's a concise guide: 1) Know Trading Styles: -Day Trader: Intraday trades. -Swing Trader: Short to medium-term positions. -Position Trader: Long-term positions. -Scalper: Quick, small-profit trades. 2) Evaluate Yourself: -Assess time availability. -Determine risk tolerance. -Clarify financial goals. 3) Review Past Trades: -Analyze successful and unsuccessful trades. -Identify preferred timeframes and market conditions. 4) Experiment and Adapt: -Use demo accounts to try different strategies. -Adapt as you gain experience and market understanding. 5) Seek Guidance: -Consult experienced traders or advisors. 6) Take Personality Tests: -Some platforms offer tests for trading inclinations. 7) Stay Open to Evolution: -Be willing to adapt your trading style over time. Regular self-assessment and a flexible approach contribute to successful Forex trading.

Trading Forex With Zi Cheng

Eight "deformations" of the king of MACD indicators

trust

In financial market investment, the MACD indicator, as a means of technical analysis, has been recognized by the majority of investors. However, how to use the MACD indicator to achieve the best investment income is little known. Next, I will explain the operation of the MACD indicator in detail for you. The two lines of DIF and DEA in the MACD indicator, according to their positions above and below the zero axis, and whether there has been a dead cross before the golden cross and the position where the dead cross occurred, there are eight types of graphics, which are: bergamot upward, Ducklings come out of the water, rise to the sky, swans spread their wings, aerial cables, aerial cable cars, submarine cables and sea fishing. 1. The bergamot upwards Definition: After the golden cross between DIF and DEA, it goes up against the price rise, and then goes down with the price callback. Turning upward, it forms the upward shape of the bergamot. Practical significance: In the bergamot upward pattern, the DIF line goes up again before it reaches DEA after a brief pullback, indicating that the market’s upward momentum is very strong, and the price will have a larger upward trend in the future. Investors can go up again in the DIF time to buy. Best buying point: When DIF forms an inflection point of heavy volume, it is the best buying point. Actual combat legend: 2. The ducklings come out of the water Definition: This form is the bottom form that appears when the selling price is exhausted after the price bottoms out. When the DIF is below the 0-axis after the golden cross DEA line, it does not cross the 0-axis or a little above the 0-axis before returning to below the 0-axis , and then dead cross DEA downwards, and then golden cross the DEA line again a few days later. At this time, the MACD indicator forms a duckling out of water pattern. Practical significance: After the price rebounded, the main force suppressed the callback again, and after confirming the stability of the bottom, it pulled up and rebounded again. The main reason is that the dealers use the method of suppressing and washing the dishes to build a second bottom. MACD forms a horizontal figure-of-eight pattern near the zero axis. The best buying point: After the MACD completes the 8-figure structure, the second MACD golden cross direction is not the best buying point on the day. Actual combat legend: 3. Prosperity Definition: Flat progress means that the DIF line crosses the DEA line above the 0 axis, then crosses the 0 axis, and then crosses the DEA line on the 0 axis or above the 0 axis. Practical significance: The formation of this pattern means that the price is consolidating on the way of bottoming out, and some are bottoming patterns, showing an upward trend. It should be understood as a signal of active intervention. When a buying point appears, one should decisively enter the market and hold a position to rise. Best buying point: When DIF and DEA are making a golden cross near the zero axis, it is not the best buying point on the day when the volume can increase. Actual combat legend: 4. The swan spreads its wings Definition: DIFF is below the 0-axis golden cross DEA line, and then pulls back without crossing the 0-axis, and moves closer to DEA. The MACD red column shortens, but reverses upward again without the dead fork DEA. At the same time, it cooperates with the MACD red column to lengthen, forming The shape of a swan spreading its wings. Practical significance: The formation of this pattern is mostly a bottom pattern, which is the bottom pattern that appears when the selling price is exhausted after the price bottoms out. It should be understood as the main position building area, and you can choose an opportunity to intervene. The best buying point: DIF Jincha DEA, and accompanied by the increase in volume, is the best time to buy. Actual combat legend: 5. Aerial cables Definition: After the DIF runs on the zero axis for a period of time after the golden cross DEA on the zero axis, the price adjusts and the DIF also pulls back downward. A new rally begins when they separate and diverge long, forming a buying opportunity. Practical significance: The emergence of this pattern is mostly caused by the upside consolidation and the main force washing the market. After a short period of consolidation on the way up, the price presents a strong upward attack pattern. It should be understood as a signal of active intervention and decisive buying. Best buying point: When MACD forms a cable car (cable) technical form, DIF and DEA once again complete the golden cross, and the day when the volume can increase is the best buying point. Actual combat legend: 6. Aerial cable car Definition: The DIFF line crosses the DEA line above the 0 axis, but does not cross the 0 axis. After a few days, it crosses the DEA again above the 0 axis. Practical significance: The emergence of this pattern is mostly due to the upside consolidation and the main force washing the market. After a short-term adjustment of the price, it shows a strong upward momentum, which can be understood as a signal of active intervention. You can buy decisively. If you can continue to increase the volume, you can firmly watch many. Actual combat legend: Since the shape of the aerial cable car and the aerial cable are very similar , the actual combat diagram is omitted here, and interested friends can find it by themselves. Special reminder: The main difference between aerial cable and aerial cable car is that it does not have a dead fork, but aerial cable car has a dead fork! The same point is: their moving average systems are often arranged in multiple heads. In actual combat, due to the relatively active trading in the foreign exchange market, the same form can be adopted for the judgment of aerial cable cars and aerial cables, that is, the double-line entanglement of DIF and DEA. 7. Submarine cables Definition: The submarine cable usually refers to the MACD indicator running below the 0 axis for a long time, after the white DIF line and the yellow DEA line form a golden cross (the golden cross below the 0 axis), the performance of the two lines did not rise very strongly , on the contrary, it is bonded with the yellow DEA line to form a straight line, and the values are almost equal. Once the two lines start to show long divergence, it is an opportunity to buy. Practical significance: Generally, when the submarine cable form below the 0 axis is formed, it is usually a bottom form that appears when the price has fallen to the bottom and the selling is exhausted. At this time, it can be understood as choosing an opportunity to intervene. For example, when a buying point appears at this time, decisively intervene, and the shareholding is expected to rise. The best buying point: When the yellow and white lines of the macd indicator are separated below the 0 axis, the day when the volume can be increased at the same time is the best buying point. Actual combat legend: 8. Sea fishing for the moon Definition: Haidilaoyue shape means that DIF and DEA have a second golden cross below the zero axis. Practical significance: Haidilao’s moon shape indicates that the downward trend has come to an end, and the market bottom has been completed, and the price has begun to bottom out, and investors can choose the opportunity to buy. The best buying point: When the MACD forms a second golden cross below the zero axis, it is not the best buying point on the day when the volume can increase. Actual combat legend: Write at the end: 1. MACD is just an indicator tool, so don't rely too much on it. 2. In the foreign exchange market, the trading volume is relatively vague. You can learn from the changes in the MACD column and understand it as the change in trading volume. You think that whether each form can be operated or not, volume is a very important aspect. 3. The trend is king. Before using these eight bullish patterns, it is best to know the current market trend. 4. In the process of application, how far the market can go depends on the time period and whether there is a deviation. 5. Only eight rising patterns are mentioned here. Those who are interested can deduce eight falling patterns. In this way, sixteen patterns can be formed. 6. For unfinished matters, leave a message to discuss.

The Investment Philosophy in Sun Tzu's Art of War

the god of wealth has a way

I will start with the article on military struggle. Due to time and space constraints, readers and friends may not be able to fully express the meaning of the text. Please forgive me. If you have any questions, please leave a message. I will answer you as soon as possible. Begin the discussion of the body part. Sun Tzu said: The method of using troops is to be ordered by the emperor, to unite the army and gather the masses, to join forces and give up, nothing is more difficult than armies fighting. Those who are in trouble in the military struggle, use detours as straightness, and take advantage of adversity. When we determine the trading variety, from the acquisition, screening, integration, market research and judgment of the entire transaction information to the synthesis of the trading plan, and then to the final transaction execution, I think the most difficult thing in the whole process is how to make the transaction before the transaction. Being able to use this information very efficiently and with high quality provides a winning opportunity for the success probability of the next transaction. If you want to gain a chance to win, the most difficult thing is how to turn the disadvantage into something that is beneficial to you. For example, we can't always find a better entry position and exit position. At this time, we can refer to the speculative sentiment of retail investors and institutions The position report and the trading strategy given by some intelligent trading signals. In addition, the shock indicator can also be used as a good emotional indicator for short-term trading. Finally, combined with your own thinking and comprehensive research and judgment, you can increase the profit probability of your trading strategy. After completing the transaction In your free time, you should strengthen your weak learning, which will help you better gain a preemptive advantage next time. Therefore, those who don't know the plans of the princes can't hesitate to make friends; those who don't know the mountains, forests, dangers, and depressions can't march; I think many traders come here because of the smell of high-yield foreign exchange, so many friends who enter this market start with high expectations or take a heavy position shortly after entering to win a "huge profit" and think that they are trading However, it turns out that many people are suffering from blood loss. We all know that in order to win, you must first understand: have you seriously understood the trading industry? Have you learned knowledge systematically? Know your strengths and weaknesses? Do you know what conditions are required to survive in this market and obtain good returns? Did you know your opponent before placing an order? Have you ever understood the difficulties faced in sticking to the road of trading? The last thing I want to emphasize is that I think it is very important that "you can't get benefits without a guide". It means that without a guide, you can't use the terrain effectively. Then, did you worship your teacher before starting the transaction? How about humbly seeking advice from teachers with real materials? Have you ever learned from experienced and capable teachers during the transaction process? Having good teachers and helpful friends before opening the way will help you get a head start. Military contention is for profit, and military contention is for danger. It is not enough to raise an army to fight for profits, and it is too much to donate if you entrust the army to fight for profits. That's why when you roll your armor and move forward, stay away day and night, double the road and go at the same time, if you fight for profit for a hundred miles, you will capture three generals. , the method is half to the end; if it is thirty li to fight for profit, then two-thirds is to the end. Therefore, if the army has no supplies, it will perish, if there is no food, it will perish, and if there is no accumulation, it will perish. Although trading can bring us huge returns, its risks are also the same. In trading, many of our novices and some friends who have been trading for a long time always like to trade heavily in the hope of earning a lot of money. In the end, most of them not only fail to achieve the expected return, but also end up in a mess, thus losing many better trading opportunities; Some traders friends are completely light-packed, there is no content or lack of content in their stomachs, so they also end up in tears; in addition, some traders friends always rush into the market and start without planning the whole transaction After placing an order, I felt a lot of painful tossing in my heart, and finally made the whole person depressed, and the vain dollars fell into other people's pockets; there are also some traders who always like to trade all the time, hoping to seize every trading opportunity and earn every dollar. Divide money, trade frequently in the market, and end up losing a lot of money and feeling disheartened. Therefore, before we make a transaction, we must have a wealth of knowledge and practice that can stand the test so that we can achieve better results in the transaction. Therefore, soldiers use deceit to establish, use profit to move, and use division and harmony as change. Therefore, it is as swift as the wind, as slow as the forest, as plundering as fire, as immovable as a mountain, as difficult to know as cloud, as moving as thunder. To plunder the villages and divide the masses, to distribute the profits broadly, and to move by hanging power. The prophet's straightforward plan wins, and this is the method of military struggle. In trading practice, we should grasp the side that can be seen clearly and is beneficial to ourselves. Before placing an order, we must evaluate the pros and cons of the entire transaction. For example, we should judge how we should allocate trading funds based on market research. It is better to distribute part of it and place it in the opposite variety or add another variety to reduce the risk. When we have made up our minds, we should lurk and wait for the opportunity when the market has not come. When the opportunity comes, we should attack decisively. If this transaction can bring us rich returns, then we should think about another question: These profit distributions maximize their interests and ultimately increase their wealth. I think this issue is worth pondering. "Military Administration" said: "If you don't hear each other, it's the golden drum; if you don't see each other, it's the banner." The golden drum is the eyes and ears of the people. Since the people are single-minded, the brave cannot advance alone, and the timid cannot retreat alone. This is the method of using the crowd. Therefore, there are many golden drums in night battles, and many banners in day battles, so people's eyes and ears are changed. In real trading, many traders and friends violate the consistency principle of trading, such as using the same take-profit and stop-loss points when trading in different frameworks, using the same strategy in different trading sessions, and the general command operations will be based on different Situations use different things to convey different operational instructions, we should also analyze the specific situation in detail, adapt measures to local conditions, and adapt measures to current conditions is the way to win. Finally, what I want to share with you here is that as a trader, we must learn how to take the initiative to grasp the disadvantages of information and turn it into benefits. We must be as decisive as the general in giving orders, and as brave as the soldiers in combat, so that we can survive in this market and live a better life.

Only when wealth gathers can it be dispersed and wealth can be gathered

Microcosmic Part One of Reasons for Investment Loss

the god of wealth has a way

Why do 98% of traders lose money and finally quit the trading market? Here is the most comprehensive collection of failures, and wealth belongs to you if you understand it. Due to the length of the article, I will make it into a series of three chapters. Please forgive me for any inconvenience. There are various reasons for the failure of foreign exchange transactions, but they can be summed up in three main reasons: the first is technology, the second is psychology, and the third is external factors. Next, I will introduce them separately. Technical reasons 1. Insufficient transaction-related knowledge reserves Many traders who enter the financial market "enter the market on an empty stomach". Just imagine soldiers who have not received military training and let them fight with a well-trained army. What do you think is the probability of success? So I personally think that traders should at least learn the basics before entering the trading market. It includes fundamentals, technical aspects, psychological aspects, etc. We will not fight an unprepared battle, regardless of whether the battle is won or not. 2. Not enough training Before we actually start real trading, we should conduct at least half a year of simulation training. The first is to feel the market; the second is to obtain a relatively sufficient test sample. Secondly, when conducting firm trading, it is best for traders to use the minimum deposit amount for trading and the position should be the smallest. This period is mainly for learning, not for making money, so it is necessary to clearly position. 3. Trade with "money you can't afford to lose" Many brokerage websites or brochures specifically state that investment is risky and not suitable for all investors. Because many traders have very little principal and other reasons, many people are basically eliminated during the learning period. The blow made most investors lack the courage and capital to stand up. 4. Poor money management When we trade, we should comprehensively allocate tradable funds based on factors such as our principal, leverage level, market conditions, and our own technical level, so as to ensure that it is at a reasonable level of risk. 5. Use high leverage trading Most brokers provide high leverage of up to 400 times, and even up to 2000 times. If a novice or an unskilled trader chooses such a high leverage to trade, it will undoubtedly be fatal. So why do many traders like high leverage? The first is because the principal is too small; the second is because higher returns can be obtained, but high risks are ignored. We know that if you lose $50 in one transaction, if you want to make $50, you need to make $100 in your next transaction. 6. Lack of a complete trading system There is a widely circulated classic sentence that everyone must be very familiar with: plan your transaction, trade your plan. A complete trading plan must include market fundamental analysis and technical analysis, such as entry and exit rules, fund management plan, and trading time frame, whether it is five minutes or 30 or greater. The second is mental analysis. For example, before trading, ask yourself whether you are prepared for any unfavorable situation in the future? 7. Overtrading Many traders and friends who have been trading for a long time have this problem. They always shuttle back and forth between the markets all day, for fear of missing every opportunity. As a result, they lost a lot of money after a busy day and made wedding dresses for others. . 8. Trading at the wrong time Friends who have done trading should know that the US market is the most active time of the day, and its liquidity is very good. Even so, many traders friends will start trading early in the morning or trade in the European market. Most of the Asian market is organized by yesterday's market, oscillating back and forth, the fluctuation is disorderly, and the liquidity is low, so it is easy to lose money. Although the liquidity of the European market is better than that of the Asian market, it often faces a large backtest, so the risk is not easy to control, and there are many times when the European market is about to cross when the market reverses, so the best time should be US market. 9. Consider only individual currencies instead of entire currency pairs A currency pair is composed of a base currency and a quote currency. When trading, you should not only consider the base currency, but not the quote currency. Only when you consider it comprehensively can you roughly know how far the market can go. For example, EURUSD, if there is European data tonight, when you trade this currency pair, you should also look at the situation in the United States. If the United States is bad and Europe is strong, then today’s trading will be very profitable, and vice versa reason. 10. Strategies that have not been fully internalized and externally inspected Many trader friends use a strategy and give up the strategy when they find it fails several times, instead of thinking about the reason for the failure of the strategy. So how does a trader test whether his strategy is qualified? That is internal push and external inspection, so backtesting and forward testing are essential (internal push and external inspection, backtesting and forward testing involve professional issues, so the expansion is relatively large, and interested friends can check it out by themselves. Of course, I will give a special explanation later). 11. Choose more currency pairs Everyone's energy is limited, we should focus on the currency pairs that we like to trade, I personally think it is best not to exceed two, and the two currency pairs should preferably have a large negative correlation coefficient, so as to This is to hedge the risk. Don't listen to the ideas of some all-round trading kings. Is there such a person? There must be, but they are a minority after all. 12. Choosing the wrong time frame If you do short-term trading, the trading is on the 5-minute time frame. When you read the 30-minute and 1-hour time frame to check today’s trend, the last stop loss refers to 30 minutes. This is fatal, so keep in mind Do not mis-match trading time frames. 13. Countertrend Trading Follow the trend. When trading, we should follow the trend so that the success rate is high and the reward is high. Don’t always rush to rebound, otherwise the last game will be empty and the great opportunity will be missed. Because grabbing a rebound can easily cause traders to misjudge the trend. 14. Using too many technical indicators Although technical indicators are generally divided into trend indicators and oscillator indicators, each indicator has different uses, so the signals sent are also different. If you use too many indicators, you will fall into a state of confusion. I don’t know. Which indicator signal to use. 14. Set the stop loss price at will, and lack the estimate of the profit stop position You can't do anything you want, especially because of our transactions. When setting a stop loss, we should make a comprehensive judgment based on support and resistance, combined with market conditions and other factors. In theory, we should not set a stop profit, and we should follow up with a stop loss, but we should also have a general position in our minds to avoid callbacks and touch losses, and the cooked duck will fly away. 1 5. Lack of ability to correctly assess the market Many traders and friends tend to listen to the analysis of some technical guidance groups or financial websites when trading. Are these things useful? Of course, it is useful to a certain extent. The important thing is how we extract useful things from it, and then combine the knowledge we have learned and the materials we read to form our own judgments. Unfortunately, many traders do not have this ability, so they lack the ability to gain insight into the entire market, and their trading performance is naturally not good. To be continued, so stay tuned.

Only when wealth gathers can it be dispersed and wealth can be gathered

Overcoming Trading Psychology Challenges - Let's Share Strategies and Support Each Other!

warren

Hey fellow traders, Trading psychology is often the unsung hero or villain in our trading journeys. It's not just about analyzing charts and making decisions; it's also about managing emotions, discipline, and mental resilience. So, I thought it would be a great idea to start a discussion here on our subreddit to share our experiences, strategies, and support each other in overcoming the psychological challenges of trading. We all know that emotions like fear, greed, and impatience can wreak havoc on our trading decisions. But we also know that they can be managed and even harnessed for our benefit. So, whether you're a newbie or a seasoned trader, let's open up the floor to discuss: Dealing with Losses: How do you cope with losing trades? Do you have specific strategies or routines that help you bounce back mentally? Maintaining Discipline: Sticking to a trading plan can be tough. What techniques do you use to stay disciplined, even when the market is highly volatile? Managing Fear and Greed: Fear and greed can be two of the biggest obstacles in trading. How do you keep these emotions in check and make rational decisions? Psychological Tools: Are there any specific psychological tools or exercises you use to improve your trading mindset? Share your favorites! Support Networks: Do you have a trading buddy or a mentor who helps you stay on track? How important is a support system in trading? Mental Resilience: Trading can be emotionally taxing. How do you build mental resilience to cope with the ups and downs? Your Success Stories: Share your personal trading psychology success stories. What did you learn from them, and how can others benefit from your experiences? Remember, we're here to support and learn from each other, so let's keep the discussion respectful and constructive. Your insights might just be what someone else needs to read to turn their trading psychology around. Trading is a journey, and conquering the psychological aspect is often the key to success. So, let's unite as a community, share our knowledge, and help each other become more psychologically resilient and profitable traders. What are your thoughts and experiences with trading psychology? Share them below, and let's build a supportive trading community right here on trading.live 💪📈💡

Warren's Trading Titans

my trading history

亏损一人扛

The rise and fall of the price forms a trend, the inertia of the trend drives the price to rise and fall, and the rise and fall of the price changes the trend-the trend is such a reincarnation. Slowly establish your own trading rules from the graphics. In fact, the hardest part of the real offer is the self-control of human nature and emotions. Discipline and mind control come first and foremost. However, there is a premise that you must have a complete and market-tested trading system, otherwise, there is a danger of becoming empty talk. This is the same as it is useless for rich people to talk about money. You must have this thing first before you can say that this thing is not important. The establishment of the trend system framework: You have a trading framework, and you know when to stop loss and when not to stop loss. Most people lose because of stop loss, you stop loss randomly, you stop the loss of orders that do not need stop loss, because stop loss, when faced with orders that need stop loss, you don’t stop loss, carry dead weight, and increase positions If you die, you will lose a lot. Everything has been improved with the establishment of the trading framework. Trade within the framework and circle the market within your framework. With the framework, you will find out how the market goes, and you can understand the market. How the market goes is in your plan and within your expectations. In a word, use rules to solve stop loss and open positions, use trends to solve stop profit, use trends to explain probability, use probability to solve beliefs, and use profits to increase confidence. A set of trend ordering system, a proven and stable profitable system, plus trading rules, plus fund management, multiple varieties, and risk diversification... Take advantage of probability, and stick to it for a long time. growth process In the first 1-2 years, it should be said that we are in the stage of struggling. Officially have a set of their own feasible trading system and a decent mentality. It should be in the third year (of course, the kind of madman who studies more than 10 hours a day is not ruled out. In this case, the cycle is greatly shortened) and formed his own trading philosophy. After reviewing the market, I found a way to make a profit on the graph. In the 4th and 5th years: spend more than a year to improve the system, refine the system, and constantly fight against yourself. In the fifth year, I know that I have the ability to make a profit (the profit here refers to a stable profit, which is calculated in years, not a month or a few months). Technically, getting out of the chaotic state, knowing right and wrong, and leaving the framework is all nonsense. Any firm offer transaction is actually not difficult, the difficulty is yourself. Years 6 and 7: Solved my various psychological barriers , straightened out the psychological barriers brought about by speculation, refined my technology, and deepened my understanding of the market. Ten years later: Within the framework, I have a more flexible approach to single-handed operations. Observance of discipline depends on awareness. I understand that right and wrong in the market are relative, and the ways to make money in the market are diverse. Formed their own views of right and wrong, suitable for themselves may not be suitable for others. Feelings after getting started After getting started, you have to face human nature and execution, fear and greed, and yourself. You will find that there are two selves fighting with yourself. After getting started, you have your own system and rules, and you have a framework for ordering. However, due to insufficient cultivation of my own human nature, due to the uncertainty of market conditions, the nature of pursuing perfection, the complexity of human nature, and the fluctuations in market prices. Therefore, even if there is a system, it will not be implemented, and the implementation will not be thorough, so you should: First, continue to practice human nature, give yourself enough time, let yourself believe in yourself, and use time to let yourself do it. Second, the inflexible execution and the nature of pursuing perfection will make you give up the system you have worked so hard to build, continue to pursue a more perfect system, and walk out of the gate again. In the end of the transaction, the more you will understand the importance of human nature. When you realize the transaction, you will find it very difficult to execute. If the problem of human nature is not solved, it is very difficult to make money. Generally, it is seen after the market. Money is so close to you, you can’t do it, and you don’t do it thoroughly. Becoming a phase problem that haunts itself. The method of trading profits is against human nature, against the human nature of most people. So this is also one of the reasons why trading is difficult. The attitude towards the market: how will the market go? You are at a loss. I thought in my heart that I really don’t know, and at this time you will be. You give up your subjective thinking and completely listen to the market. Because you have jumped out of the market guessing stage. You don't care how the market goes, you don't know, you really don't know. But you know it in your heart, and I know how to do it. You don't care about fundamentals, technical aspects, news, news, market sentiment and other things. You don't care too much, which only adds to the chaos. You don't care about how the market will go tomorrow, and you don't have to stay up late at night to watch the external market, so you can sleep peacefully. The process of trading learning is a process of becoming simple, one is technically simple, and the other is mentally simple. Only by doing these two things can the transaction be truly simplified. Trading is complicated if you make it too complicated. If you look at trading as simple, then trading is simple. Trading is a bit simpler, nothing more than rising and falling, 2 directions. Then the transaction becomes easier. In fact, you don't have to know the essence of speculation. Behind the price fluctuations, you only need to know whether the price has risen or fallen. If you have to be complicated. The price has risen, do you have to figure out why it has risen? Fundamentals? policy? funds? The more you think about it, the more complicated it gets. The more references you have, the more complicated it becomes. In trading, you will definitely go through such a stage: stable losses, how to do how to lose is a habit. From simple to complex and from complex to simple The learning process of trading is from simple to complex, and then from complex to simple. Most people only achieve technical simplicity. How simple is it technically? Find a set of your own basis for order making, a basis for order making that can be stable and profitable. It has been tested and tested in actual combat. Some people call it a system and others call it a rule. In short, it is your own basis for order making. Then convince yourself to trust him and rely on him. Don't believe those mysterious tactics and secret indicators, they are just the basis for making orders. You can name your system and indicators "God-like indicators or God's hand". But the mentality is complicated, and most people lose money because the mentality is too complicated. Everyone has this experience. When you first start trading, you might still make money, make money in a daze, and even make a lot of money. After a period of time, after being taught a few times by the market, I realized my ignorance, so I found books by myself and went to the forum to learn. The result is that the more you learn, the more you lose money, and you will lose money no matter what you do. Losing money has become a normal state until you lose all your funds. Stable loss is a habit, the more you do it, the more you lose, the market is the same as doing it right. What caused the steady loss? Human nature, human nature, human instinct. A normal thing becomes your speculative weakness in speculation, as well as your inertial thinking and behavior, a series of factors, causing you stable losses, how to do what you lose. Human nature is like the gravity of the earth, which catches you and prevents your speculative dreams from taking off. It seems that this period of time is the dark period of futures, a period of time when there is no hope and no light. This stage is eliminated. How can the problems of human nature be solved? Relying on the system and rules, when you have a system, you will find mentality problems. How to solve mentality problems and self-regulation? Waiting for a series of problems, you need to continue to solve. The longing for happy trading, easy trading, and confident trading is a manifestation of a person's maturity, stability and profitability. Trading is simple and easy, but it is also difficult to say. If you have been trading for more than 5 years, you ask him, what is the main reason for your loss? No one said it was because of technology, they all said it was mentality and execution. Everyone has their own favorite indicator or signal. The technology of trading is not difficult, what is difficult is to take a step forward. In the face of losses and stop losses, everyone has fluctuations and emotions in their hearts. Learn to adjust your mentality. A mature, stable and profitable person has a calm mind. Some people say that a trader has to go through a few more cycles than most people, because he has walked the path he should go, and experienced the test of life after death. Therefore, his mentality has improved and his heart has grown. The secret of trading profits lies in those nonsense, among those correct nonsense, because you don't have sword skills, even if you tell you sword formulas, you can't use swords. When you make stable profits, you will find that the philosophy of many people to make profits is The same is even the same, but the words are different. You must have an effective price tracking system, and more importantly, a good fund management and risk control mechanism, treat transactions with a "dispersed" and "persistent" perspective, and have a long-term probability advantage in the speculative market, rather than putting all your eggs in one basket. That's what financial transactions are all about. For most and normal people. Only after about 3 years of experience can you form your own system and rules before you get started. If you want to really make money, it will take about 2 years to transform the system into behavior. Therefore, most people, ordinary people, want to make money from trading. It takes about 5 years. It does not rule out that there are people who are lucky or extremely smart, or people who are guided by experts, or people who have sufficient funds and are not afraid of losses. , breaking this time frame. With the guidance of an expert, the road is the fastest shortcut, which is equivalent to the fastest way you have traveled for more than ten years, but the biggest problem is that such an expert is hard to come by, depending on fate. It is a process to establish a correct trend trading concept, to form a trading system, and then to specify rules, and then put it into practice, constantly restrain one's human nature, and fight against oneself. This is a process of learning, a process of experience, a process from complex to simple, a process of human experience, a process of constantly improving system rules and reshaping oneself. The process of building a system, in simple terms, is divided into three steps: ① Once you have a system, opening a position is your first step, because opening a position is either missed, or it is too early, or you will face a stop loss after opening a position In the face of losses, you will be afraid, you will be afraid, you will be timid, and you will not dare to enter the order. You must overcome your fear. ②The second step is to stop the loss, which is even more difficult, because it is possible to stop the loss and the price will come back, or it is possible to continue to lose without stopping the loss, and it is impossible to do the best. Stop loss is not only a loss, but more importantly, a blow to you, a psychological blow. Can you be very rational and not trade retaliatoryly? Do you still have the courage to open a position when you face the opportunity to open a position again? If the stop loss can be done well, basically no loss can be achieved, which is also a sign of entry. Stop loss, once there is a mature system, the stop loss becomes clearly visible: when to stop the loss, when the loss is temporary, and when to stop the loss to chase after the order. Here comes the question, what if you are not given a chance to stop the loss? For example, institutions take extreme measures, opening sharply higher or lower, or diving sharply, leaving you too late to stop losses. Once a person stops losing control, there will be a kind of gamble, let it go, let the loss continue to expand, and finally the amount of emotional breakdown. You start to regret that you didn't stop the loss in time. Stop loss has become more important in your mind, so there is a slight price rebound, and you will stop loss. This is the result that other organizations want, washing dishes. The problem comes again, that is, the stop loss back and forth, which is also a problem for many people. As soon as the loss is stopped, the price comes back; Stop loss is inevitable, because no one can be right. If you want to make money, you can only rely on less stop loss and more stop profit, or small stop loss and big profit. Finally, when encountering extreme market conditions, there must be means to deal with them. Therefore, once the problem of stop loss is solved, it proves that your system has also been improved, and the stop loss can be achieved and implemented, and you will not lose money, which also means getting started. As long as you have gone through the first and second steps, you will find, "Hey, you can basically make no losses", and you will gradually become confident. When you lose money, you are equally confident, and you can even lose money. Turn stop loss into profit. ③ The third step is that you have patience. You can be patient without opening an order for several days. Once you seize the opportunity, you can attack continuously. You have found the so-called rhythm, and you can wait for the opening with the smallest stop loss. When faced with a stop loss opportunity, you can cut it without hesitation. Not only will you not feel sad, but you will be very happy. These are fragments of the process of psychological maturity, and also my true psychological feelings and process. However, after establishing the system, you may not have a big profit, let alone great success, and you may even fail to execute it in the middle, because there are still some steps that have not been resolved, and that is the problem of belief. After going through it, doing it based on feeling, looking for the system to do it randomly, and finally continuously precipitated it, forming its own trend order system, and constantly sharpened and precipitated. Now I can wait and dare to chase, and the order-making is becoming more and more mature. It is a process to establish a correct trend trading concept, to form a trading system, to make specific rules, and then to put it into practice, to constantly restrain one's human nature, and to fight against oneself. This is a process of learning and experience The process is also a process from complex to simple, a process of human experience. A process of constantly improving the rules of the system and reshaping itself.

One person talks about things

The Three Elements of Wave Theory: Shape, Ratio, and Time

chinese studious bastard

Flowing water theory, which believes that the fluidity of waves can form a coherent whole, is the key to wave theory. Therefore, the wave theory is more suitable for collective forces such as stock indexes, gold, and foreign exchange to dominate, rather than a few market makers or varieties controlled by the main force. Waves are mainly composed of driving waves and correction waves superimposed on each other. Driving waves are divided into: ① Leading oblique triangle (wedge) wave 1 or wave A, 5-3-5-3-5 ② Ending oblique triangle (wedge), five waves or C waves, 3-3-3-3 Corrective waves are mainly divided into two types: simple and multiple. Sawtooth is divided into: single sawtooth, double sawtooth, triple sawtooth. The sawtooth adjustment space is larger and the range is larger. The triangle adjustment is divided into: the rising horizontal line is above, and the falling horizontal line is below. (AUDUSD, 30 minutes, ascending horizontal line is on top) (USDCAD, 30 minutes, descending horizontal line below) Three principles of shape: the retracement of the second wave does not exceed the starting point of the first wave, the third wave is never the shortest wave, and the retracement of the fourth wave does not cross the top of the first wave. Retracement ratio: wave 4 retraces to 0.382 or 50% of wave 3, wave 2 retraces to 0.618 of wave 1. Range trading, range adjustment, retracement is 1. Multiple: 3 waves = 1 wave*1.618*2=3.236 . The interval retraces to the top and low, and the trend retraces the golden section. Draw the Fibonacci sequence in the direction of the trend. Waves 1, 3, 5, the extended wave and the remaining waves form a golden ratio, and the proportion of the extended wave is 0.618. The relationship between time and proportion is equivalent. The triangles are mostly in the four waves and B waves, and the second and fourth waves appear alternately. In the wave theory, the greatest significance of five waves lies in the "continuation" of the information it conveys, and the three waves mean "termination". The essence of the wave theory: wherever the main line goes, after the adjustment is over, it will go there (where it comes and goes, trade with the trend, trade with the trend). Candle charts are trading signals and cannot be used as a strategy.

Slag technical school

The secret to profitable trading is here...

forex expert

01 Many people think that discipline and mentality control are more important than anything else in trading. However, I point out unceremoniously that the premise of all this is that you must have a complete and market-tested trading system, otherwise, there will be flow. The danger of empty talk. Most people lose because of stop loss, you stop loss randomly, you stop the loss of orders that do not need stop loss, because stop loss, when faced with orders that need stop loss, you don’t stop loss, carry dead weight, and increase positions If you die, you will lose a lot. A set of trend ordering system, a proven and stable profitable system, plus trading rules, plus fund management, multiple varieties, and risk diversification... Take advantage of probability, and stick to it for a long time. 02From "Enlightenment" to "Great Accomplishment" The process of building a system, in simple terms, is divided into three steps: Opening a position is your first step, because opening a position is either missed or too early, or you will face stop loss after opening a position, and face a loss, you will be afraid, you will be afraid, you will be timid, and you will not dare to enter To be single, you must overcome your fear. The second step is to stop loss Stop loss is more difficult, because it is possible to stop the loss and the price will come back, or it is possible to continue to lose without stopping the loss, and it is impossible to do the best. Stop loss is not only a loss, but more importantly, a blow to you, a psychological blow. Can you be very rational and not trade retaliatoryly? Do you still have the courage to open a position when you face the opportunity to open a position again? If the stop loss can be done well, basically no loss can be achieved, which is also a sign of entry. Stop loss, once a mature system is in place, the stop loss becomes clearly visible: when to stop the loss, when the loss is temporary, and when to chase the order after the stop loss is required. Here comes the question, what if you are not given a chance to stop the loss? For example, institutions take extreme measures, opening sharply higher or lower, or diving sharply, leaving you too late to stop losses. Once a person stops losing control, there will be a kind of gamble, let it go, let the loss continue to expand, and finally the amount of emotional breakdown. You start to regret that you didn't stop the loss in time. Stop loss has become more important in your mind, so if there is a price rebound, you will stop loss. This is the result that other organizations want, washing dishes. The problem comes again, that is, the stop loss back and forth, which is also a problem for many people. As soon as the loss is stopped, the price returns; Stop loss is inevitable, because no one can be right. If you want to make money, you can only rely on less stop loss and more stop profit, or small stop loss and big profit. Finally, when encountering extreme market conditions, there must be means to deal with them. Therefore, once the problem of stop loss is solved, it proves that your system has also been improved, and the stop loss can be achieved and implemented, and you will not lose money, which also means getting started. As long as you have gone through the first and second steps, you will find, "Hey, you can basically make no losses", and you will gradually become confident. When you lose money, you are equally confident, and you can even lose money. Turn stop loss into profit. The third is that you have patience You can be patient without opening a single order for several days. Once you seize the opportunity, you can attack continuously. You have found the so-called rhythm. You can wait for the opportunity to open a position with the smallest stop loss. Cut it off without hesitation, not only will you not feel sad, but you will be very happy. These are fragments of the process of psychological maturity, and also my true psychological feelings and process. However, after establishing the system, you may not have a big profit, let alone great success, and you may even fail to execute it in the middle, because there are still some steps that have not been resolved, and that is the problem of belief. From enlightenment to great success, it can be roughly divided into six steps, from enlightenment to system, to rules, to self-confidence, to belief, to great success. Take my trading life of more than ten years and the traders I know around me as examples, let’s see: Enlightenment: I realized that the market has a trend. Simply put, it means following the trend and stopping losses. System: Find a way to divide the trend, simply put, you can identify the market. Rules: To make the system concrete, the simple point is to find the opening and stop loss points. Confidence: The confidence brought to you by system execution and review. To put it simply, your system can make money. Belief: communicate with the heart, form belief in the brain, religious belief, simply put, is that you absolutely believe in your system and rules. Dacheng: Of course I don’t dare to say, and I can’t say that I have achieved great success, but I think I am satisfied and my life is satisfied. This is my belief! 03 After going through it, do it based on feeling, find the system to mess around, and finally continue to accumulate, form your own trend order system, continue to sharpen and accumulate, and now you can wait, dare to chase, and the order is becoming more and more mature. I constantly reflect on my psychological changes in making orders, communicate with myself, subtly guide my psychology, and constantly tell myself what is right and what is wrong. It is like being brainwashed, brainwashed by myself, and slowly formed religion. It is a process to establish a correct trend trading concept, to form a trading system, and then to specify rules, and then put it into practice, constantly restrain one's human nature, and fight against oneself. This is a process of learning, a process of experience, a process from complex to simple, a process of human experience, a process of constantly improving system rules and reshaping oneself. 04 Comprehension after getting started: After getting started, you have to face human nature and execution, fear and greed, and yourself. You will find that there are two selves fighting with yourself. After getting started, you have your own system and rules, and you have a framework for ordering. However, due to insufficient cultivation of my own human nature, due to the uncertainty of the trading market, the nature of pursuing perfection, the complexity of human nature, and the fluctuation of the market. Therefore, even if there is a system, it will not be implemented, and the implementation will not be thorough, so you should: First, continue to practice human nature, give yourself enough time, let yourself believe in yourself, and use time to let yourself do it. Second, the non-executive nature of pursuing perfection will make you give up the system you have worked so hard to build, continue to pursue a more perfect system, and walk out of the gate. In the end of the transaction, the more you will understand the importance of human nature. When you realize the transaction, you will find it very difficult to execute. If the problem of human nature is not solved, it is very difficult to make money. Generally, it is seen after the market. Money is so close to you, you can’t do it, and you don’t do it thoroughly. Becoming a phase problem that haunts itself. The method of profit is against human nature, against the human nature of most people. So this is also one of the reasons why trading is difficult, and the attitude towards the market: How is the market going? You are at a loss. I thought in my heart that I really don’t know, and at this time you will be. You give up your subjective thinking and completely listen to the market. Because you have jumped out of the market guessing stage. You don't care how the market goes, you don't know, you really don't know. But you know it in your heart, and I know how to do it. You don't care about external disks, news, news, main positions, and other things. You don't care too much, which only adds to the chaos. You don't care about how the market will go tomorrow, and you don't have to stay up late at night to watch the external market, so you can sleep peacefully. Looking back over the past ten years, the process of trading learning is a process of becoming simple, one is technically simple, and the other is mentally simple. Only by doing these two things can the transaction be truly simplified. If you look at the market too complicated, then the market is complicated. If you look at the market simply, then the market is simple. The market is simpler, nothing more than rising and falling, 2 directions. In fact, you don't have to know the essence of speculation. Behind the price fluctuations, you only need to know whether the price has risen or fallen. If you have to be complicated. The price has risen, do you have to figure out why it has risen? Fundamentals? policy? funds? Or did you buy it? Still empty. The more you think about it, the more complicated it gets. The more references you have, the more complicated it becomes. Feelings about one's own humanity in trading: It is a habit to lose money steadily, how to do it and how to lose money. 05 From simple to complex, then from complex to simple The learning process of trading is from simple to complex, and then from complex to simple. Most people only achieve technical simplicity. How simple is it technically? Find a set of your own basis for order making, a basis for order making that can be stable and profitable. It has been tested and tested in actual combat. Some people call it a system and others call it a rule. In short, it is your own basis for order making. Then convince yourself to trust him and rely on him. Don't believe those mysterious tactics and secret indicators, they are just the basis for making orders. You can name your system and indicators "God-like indicators or God's hand". But the mentality is complicated, and most people lose money because the mentality is too complicated. Everyone has this experience. When you first start trading, you might still make money, make money in a daze, and even make a lot of money. After a period of time, after being taught a few times by the market, I realized my ignorance, so I found books by myself and went to the forum to learn. The result is that the more you learn, the more you lose money, and you will lose money no matter what you do. Losing money has become a normal state until you lose all your funds. Stable loss is a habit. The more you do it, the more you lose. The market is as good as you are right, as if the dealer looks at your own list and kills your own list. What caused the steady loss? Human nature, human nature, human instinct. A normal thing becomes your speculative weakness in speculation, as well as your inertial thinking and behavior, a series of factors, causing you stable losses, how to do what you lose. Human nature is like the gravitational force of the earth, which catches you and prevents your speculative dreams from taking off. It seems that this period of time is a dark period, a period of time when there is no hope and no light. Most people are in this stage was wiped out. How can the problems of human nature be solved? Relying on the system and rules, when you have a system, you will find mentality problems. How to solve mentality problems and self-regulation? Waiting for a series of problems, you need to continue to solve. The longing for happy trading, easy trading, and confident trading is a manifestation of a person's maturity, stability and profitability. Trading is simple and easy to say, but difficult to say. If you have been trading for more than 5 years, you ask him, what is the main reason for your loss? No one said it was because of technology, they all said it was mentality and execution. Everyone has their own favorite indicator or signal. Technology is not difficult, what is difficult is to go one step further. In the face of losses and stop losses, everyone has fluctuations and emotions in their hearts. You have to learn to adjust your mentality to make losing money a happy thing, lose money happily, and place orders with confidence. 06 A mature, stable and profitable person, open-minded, calm, and humble to people and things. Some people say that a trader has to go through a few more cycles than most people, because he has walked the path he should go, and experienced the test of life after death. Therefore, his mentality has improved and his heart has grown. The secret of profit lies in those nonsense, among those correct nonsense, because you don't have sword skills, even if you tell you the sword formula, you can't use the sword. When you make stable profits, you will find that many people have the same profit concept It's even the same, just in a different way. You must have an effective price tracking system, and more importantly, a good fund management and risk control mechanism, treat transactions with a "dispersed" and "persistent" perspective, and have a long-term probability advantage in the speculative market, rather than putting all your eggs in one basket. That's what financial transactions are all about. For most and normal people. Only after about 5 years of experience can you form your own system and rules before you get started. If you want to really make money, it will take about 2 years to transform the system into behavior. Therefore, most people, ordinary people, want to make money from the market, and it takes about 7 years. It does not rule out that there are people who are lucky or extremely smart, or people who have expert guidance, or people who have sufficient funds and are not afraid of losing money. , breaking this time frame. With the guidance of an expert, the road is the fastest shortcut, which is equivalent to the fastest way you have traveled for more than ten years, but the biggest problem is that such an expert is hard to come by, depending on fate. Don’t believe those people who say they can make stable profits within a few months. If so, call your wife out to see the genius, or ask your wife to come out to see Li Gang’s son. His father is Li Gang, and he is not short of money. Don't believe what those trading analysts say, if you can really make a lot of money, trading is such a beautiful and profitable thing, who will be under the control of others? 07 Follow the trend that you can do, follow the trend that you can lose . For more than ten years, like a monkey breaking corn, I have tried various technologies and methods on the market. The first 5 years were a process of "finding rules and forming a system". We experienced stable losses, small losses, no losses, and small wins. It was a step-by-step process; In the end, continuous precipitation formed its own trend order system. Five years later, after you have your own system and rules, you will find that you still can't really make money because you can't do it yourself. At this time, I was faced with the implementation barrier, and I was very confused at first. Most of them failed to pass their own psychological barriers of stop loss; secondly, the psychological barrier of holding positions, facing the ups and downs of the market, they always change themselves at will; It is harder than stop loss. So I went to various forums to see how other people passed this level, and I also read a lot of books. Later you will be relieved, it also takes time, these psychological barriers, as your technology continues to refine, the rules continue to improve, the system continues to improve, time will change you, from the beginning of the single hand trembling, overnight single can not sleep , I don’t need to look at it for several days after the final order is placed. From knowing to doing, you need to reshape your trading behavior, which also requires a process. Since it is a process, it is inevitable to fail and make mistakes in the middle. From consciously controlling myself to finally unconsciously controlling myself, as long as I place an order that does not conform to my own rule system, I will feel very uncomfortable. The process of implementing the rules is also a process of persuading one's heart, constantly convincing oneself, and making oneself better and better; the cultivation of human nature begins with stop loss and stop profit, willing to lose, and confident to win, trading is a solution that speculation brings to you The process of various psychological barriers is also the process of reshaping one's own behavior. For most people and ordinary people, only after at least 5 years of experience can they form their own system and rules before getting started. If you want to really make money, it will take about 2 years to transform the system into behavior. So, most people, normal people. It takes about 7 years to make money from the trading market. It does not rule out that there are people who are lucky and smart, or people who are guided, or people who have sufficient funds and are not afraid of losing money. Breaking this time frame. After so many years, I now feel that the technology is getting simpler and simpler, and the mentality is gradually becoming simpler. Now I can wait, dare to chase, dare to stop losses, can make profits, and the order is becoming more and more mature. It is a process to establish a correct trend trading concept, to form a trading system, to make specific rules, and then to put it into practice, to constantly restrain one's human nature, and to fight against oneself. This is a process of learning and experience The process is also a process from complex to simple, a process of human experience. A process of constantly improving the rules of the system and reshaping itself. I hope this article can help traders get out of the confusion when they are in confusion. Old rules, if you haven’t understood it, please bookmark it first!

foreign exchange investment

Candlestick, an underrated analysis tool

dj专业百科

K-line is the most basic expression symbol of market movement. It carries the flow track of money and records the process of money gain and loss. It is endowed with life by people, showing people's expectations, suspicions, fantasies, greed, fear, etc., and contains rich natural laws. 1. You better believe it One leaf falls and the world knows the autumn. This is the way of thinking brought to us by the K-line chart. It clearly reminds us that no matter how large the market movement is, it develops from clues. Who can first grasp these more accurately? Whoever has clues can avoid more losses and obtain the greatest benefits. Every K-line chart is trying to make gestures to you, telling you the changes that are taking place in the market, and you can only understand the rhythm in the noisy market if you calm down and identify carefully. The development and success or failure of all things seem to be without a clue, but in essence they are all governed by internal laws, and the K-line chart is no exception. Here, there is nothing but people. You have to use this chart to identify market participants' guesses, wishes, understanding of supply and demand, relative strength of buying and selling, etc. Like the magical banknotes, the K-line chart, which is being followed by hundreds of millions of people around the world, also really affects people's transactions and gains and losses. You have to believe it because hundreds of millions of people are reading it, using it, and trying to manipulate it. K-line movement is better than eloquence, better than forecast, better than appearance and rumors. But facing the same picture, Easterners like to use philosophical methods to grasp it, while Westerners like the results of quantitative statistics, but no matter how scientific statistical tools are, it is difficult to count the psychological changes in the speculative world. If there is too much reliance on computerized analysis systems where anyone can trade based on buy and sell signals, then speculation will be reduced to a video game and the trader's brain will quickly depreciate. 2. One method per person K-line charts are not a science, but a practice of behavioral art and investment philosophy. It is essentially a concentrated reflection of the psychological factors of market groups. You can grasp its sex, but not its magnitude, and it leaves a lot of subjective judgment for everyone, leading analysts who try to quantify it to end up astray. This is a world that statistics cannot understand. Reason is often the worst enemy here. There are no hard and fast things here, only rough lessons learned. Just as there is no perfect transaction, there is no perfect graph in the candlestick chart. When analyzing graphics, you should not stick to the graphics, but should study its inner essence to gain insight into the changes in the power balance between long and short. The analysis of the K-line chart has a strong subjective color, which leads to the fact that after everyone has completed the same course, even if they are all market doctors, they can diagnose the market through the K-line chart and put it into practice. and results are different. This one depends on the individual's character, the second depends on the individual's perception, the third depends on the personal experience, the fourth depends on his market philosophy, the fifth depends on his perception of risk, and the sixth depends on His consideration of income, seven depends on the influence of the surrounding environment on him, eight depends on the characteristics of the market he trades, and nine depends on the size of his funds. Western technical analysis pays attention to scientific rigor, while eastern technical analysis pays attention to dialectical thinking. Combining the advantages of both, the best trading method is: keep a close eye on your losses and let the profits run by themselves. Therefore, even if one person has one dharma, all dharmas will return to the clan in the end. 3. Concentration of natural law Nature has a law of inertia, which states that an object will move in the direction of a force unless it is affected by a new force. The same is true for the market. At the beginning, economic data, news, speculation, etc. have contributed to a market, and the K-line chart will develop along the force of these factors; once internal and external factors change, the price will reverse until a new The balancing force arrives. There is a law of acceleration in nature, that is, an object needs external force to do work when it goes up, but it will accelerate due to its own weight when going down. The same is true for the market. A rise will consume a large number of buy orders and increase the trading volume sharply, while a fall can be a sharp and infinite fall. This shows that it is easy to be short and difficult to do more, and it also reflects the inevitable law of the stock market. There is a law of reaction in nature, that is, the action of force is reciprocal. The same is true in the market. It is commodity and stock prices that affect market psychology, making people fearful or greedy; in turn, market psychology affects prices, causing them to rise or fall. There is no question of which came first, the chicken or the egg, and the counterforce always exists. There is also Newton's fourth law in nature, that is, increasing motion decreases reward. The same is true in the market, frequent short-term transactions will continue to consume funds and reduce the total return of traders. There is also the law of energy conservation in nature, that is, any kind of energy will be transformed into another kind of energy with the passage of time. The same is true in the market. The energy of long and short can be switched at any time, and the phenomenon of how long the horizontal is and how high the vertical is is not uncommon. There is also the law of yin and yang in nature, namely: old yin gives birth to little yang, little yang becomes old yang, old yang gives birth to little yin, little yin becomes old yin, old yin regenerates little yang; There is yang in yin, and yin in yang, and yin and yang are transformed, and life is endless. The same is true in the market. Sooner or later, the bulls will sell and become shorts, and the shorts will become longs sooner or later after withdrawing their funds; when the bulls die, the shorts are born; There is a demand for partial rebound, and there is a requirement for short-term adjustments in the rising environment. In K-line sports, there is neither the best shape nor the worst shape. The same shape will have different meanings and forecasts when placed on different occasions or times. There is no absolute success here, and no guaranteed failure. When the graphic prediction fails, it is often an opportunity for you to backhand the order; and when the graphic prediction succeeds, often one of your feet has stepped into the door of loss. Misfortunes depend on blessings, and blessings lie on disasters. When analyzing K-line charts, one must analyze the same source of information from both optimistic and pessimistic aspects. In many cases, even though they wear the same coat, the gestures of the market are different. Therefore, in the face of each K-line, we might as well always ask these two questions: If the market is really bullish, why don't the bulls...? If the market is really bearish, why don't the bears...? In this way, the mystery suddenly appeared. 4. The embodiment of dialectics Everything is relative, without relative, there would be no yin and yang, long and short, fast and slow, rising and falling, etc.; everything is moving, there is no absolute isolation, only relative movement, and solving problems in movement Methods; Everything is contradictory, there is me in the enemy, there is an enemy in me, the enemy is indistinguishable from us, only contradiction is the real order; everything is convertible, yin and yang can be converted, energy can be converted, time and space can be converted, if you stick to one side, It's like carving a boat and asking for a sword. For the K-line, from a micro perspective, it is necessary to grasp the meaning contained in her itself. For example: the longer the Yang line entity is, the more favorable it is to rise; the longer the Yin line entity is, the more favorable it is to fall; but after a continuous strong rise, beware of the peak and then decline; after a continuous strong decline, it may be extremely prosperous; if the shadow line is relative to the entity Very small, can be equated to nothing; The longer the shadow line pointing in one direction, the more unfavorable it is for the market price to change in this direction in the future; the upper and lower shadow lines are long at the same time, indicating that the long and short sides are fighting fiercely, and the final balance is flat, and the market outlook is uncertain; the appearance of the doji is often a transitional signal rather than a Reversal signal, which means that the market has temporarily lost its sense of direction, etc. From a macro perspective, it is necessary to know how to grasp the working law of the K-line chart as a whole. For example, the reliability of the monthly K-line is higher than that of the weekly K-line, the reliability of the weekly K-line is higher than that of the daily K-line, and the reliability of the daily K-line is higher than that of the hourly K-line; For another example, for two or more K-lines, the most important thing is their relative positions, and different positions mean different price ranges. The second is their appearance, that is, whether they are hatched or not, how long or short, etc. The last is their color, that is, whether it is a Yin line or a Yang line; in addition, the trend trajectory before the formation of the price pattern is the key to deciphering the later trend. Ups and downs, fast and slow, big and small, etc. are all relative to the past In terms of trends, only by comparing the past can we know the future. 5. neither sad nor happy For traders who use candlestick charts to analyze and enter the market accordingly, there are three things to understand: First, you may never see the standard K-line patterns drawn in books, so you must grasp the degree of recognition; Second, what is technically feasible may not be possible in actual price movements. For example, if the price gaps and opens low, your stop loss point will be left behind, making your stop loss technique invalid; Third, the market is a self-healing and self-mutating thing. Because the people participating in the market become smarter, it becomes smarter, and the tried-and-true methods may become invalid. The K-line chart itself is neither good nor bad, it will not make you profit or loss, it is your ability to identify and operating rules that make your funds fluctuate. For those traders who lost money, the root cause came from their wrong analysis of the market, or their lack of ability to translate correct analysis results into actual operations. For example, on the K-line chart, what price is the most important? People's answer is often: the buying price. Because you participated in this matter, you pay close attention to this price, and when you lose money, you will look everywhere for the reason for the loss, or collect evidence from the same pile of information sources to continue to hold. But the wind is still the wind, and the fan is still the fan. Excessive care and enthusiasm expose your desire, greed and fear, and this is the reason why you cannot turn the correct analysis results into profits. Success is often the result of trading as planned. The wealth of Buffett and Soros is not earned, but the product of the correct implementation of their ideas and strategies. Their whole life is to constantly verify their ideas and strategies. Therefore, only when you change your investment behavior into the behavior of doing your homework, and strictly follow the correct plan to trade, will the mentality of worrying about gains and losses and the situation of being deceived will change. 6. Price/Quantity/Time Japanese traders have a famous saying: the first hour of trading leads to a trading day. It can be seen that the opening quotation often lays the foundation for the trading quotation of the day. The opening price is the result of people's deliberation overnight, and it is also the process of continuing to confirm or revise yesterday's price, and it is also the establishment of today's new price or the beginning of a tentative attack. As for the closing price, because most of the methods of western technical analysis, including how much margin to add, are based on the closing price, so when the closing price is approaching, the long and short sides will often carry out violent attacks and make a clear-cut statement. take one's stand At the same time, those automatic trading computer systems often judge whether certain patterns are established according to the price before the closing, and accordingly conduct a large number of transactions before the closing. Here, price is a commodity, and the whole market transaction is a process of discovering the value of price. When people think it's cheap, they buy a lot, and the price goes up; when people don't think it's worth that price, they stop buying, and the price goes down. People's value judgment standards are influenced by market sentiment, and fluctuate around the price value, artificially pulling up or pushing down the value. If price can tell us what is happening in the market, then volume can tell us how it happened, it represents market sentiment and supply and demand. Any price and trading volume are relative to a certain time. In a given period of time, the trading psychology of the market will not be the same. Trading volume is the result of long and short power consumption, and it is a reflection of the intensity of the long and short game. Time and price also have a dialectical relationship. The longer the consolidation at the same price, the more likely it is to switch to a higher or lower price; and the more intense the price movement, the longer the silence may be in the future; The longer the time-consuming exercise, the greater the variable, which often leads to the miscarriage that should have happened, but the impossible has become a reality. This is how the market uses a set of internal mechanisms to restrict price, time and trading volume. 7. Reversal is the most important As a trader, you must pay attention to all kinds of reversal signals you encounter, even if it is false. The loss of missing a real dangerous signal is sometimes beyond our ability to bear. Our entry or exit only starts when the reversal signal comes. You can calmly wait for the subsequent verification graphics, or you can trade immediately, but the key is to wait patiently for the reversal signal to appear. Otherwise, if the market consolidates after entering the market, you will lose control of your funds and at the same time, you will suffer a lot in your heart. Most of the time, the reversal trend is accompanied by a star line or a Yin-Yang line with a long shadow line. These traces have been counterattacked by the short side, and it is not far from success as a loser. . The essence shows that people are often only interested in success and don't care about failure, but the views of these marketers should not appear on professional traders. Although the reversal signal heralds a change in the situation, it does not tell people that the trend will turn around soon. It may consolidate sideways or adjust in the opposite direction. Therefore, it is not wise to sell all the underlying stocks after the reversal signal appears. Reversal signals are often also breakout signals. The main force of the market often uses breakthroughs to test the market reaction in the support zone and the pressure zone, and then launches the next step. Therefore, these test breakthrough actions are often meaningful; Traders' ability to judge, or attract followers as sacrifices. But whether it is a test breakout or a false breakout, they tend to show their true form at the close or the next trading day. It's just that after a test breakthrough occurs, the main force may continue to test until the real breakthrough comes, while the false breakthrough will immediately reveal the real reverse intention after the deception succeeds or fails. 8. Always follow the trend/stop loss Faced with the magnificent capital movement and mysterious price changes, no one dares to guarantee their own expectations. For those who survive in the speculative market, the most important survival magic weapon is to follow the trend and stop loss. This is to deal with uncertain factors. the only way. The former is active adaptation and the latter is active defense. In the trading market, if you cannot actively adapt to the environment, the market will immediately engulf you. Learning to actively adapt to the environment means learning to trade on a plan, not on an expectation. If you don’t make expectations, you won’t enter the market, so everyone will have expectations, but every expectation may not be realized, so successful traders know to follow the trend and admit mistakes in time. Mistakes are inevitable, and the truly fatal mistake is to persist in being wrong. If you want to impose your own expectations on the market, the result is often tantamount to blocking the car with your own hands. You know, the market doesn't care about your thoughts and positions, nor does it care whether you follow her trend, she will just flatten all traders who stand in her way. Therefore, if you have bullish expectations, you should enter when you are sure that the upward trend has come; if you have bearish expectations, you should sell when you are sure that the downward trend has come; The bull market only buys up, don't easily backhand orders. Trading is like taking a chestnut from the fire, and all profits come from the return of strictly guarding losses. To abide by the stop loss rule is to save your funds and give you a chance to make a comeback. Homeopathic and stop loss are trading principles that every trader must possess.

Encyclopedia of Forex Knowledge

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

What is best Trick for Executing an Effective Scalping Strategy ?

Chandan Gupta

To execute the strategy effectively, a trader must be able to spot trends in the market, anticipate upticks and downswings, and be able to understand the psychology behind a bull and bear market. Effective scalpers must also be able to read and interpret short-term charts. They must often make decisions based on stock charting that is within 1- to 5-minute intervals. Scalpers look for key indicators such as moving averages and pivot points in the market to quickly determine if they can execute a trade. Scalpers invariably always come across losing trades, but a successful scalping strategy and discipline can help maximize the wins and minimize the losses. Scalpers must also have liquidity and adequate capital in their portfolio to trade. They must subscribe to generally Level II platforms that show live bids and asks for specific stocks, as well as have an exceptional – generally wired – internet connection. It helps to prevent technical factors from decimating your trading strategy. If the data you were receiving as a trader had too much latency, it could mean you are acting on outdated technical data and have already missed your window for a buy or exit from a stock. It could make for frustrating losses and missed opportunities.

SCALPING SECRETS

Four Steps to Understanding Your Trading Style: Framework, Strategy, Analysis and Risk Level!

山城老刁民

The way a trader trades is an important but often overlooked factor. To be successful, it is important to first understand your own style. The so-called trading style is to focus on learning trading strategies and how to find out the methods that are most helpful to you. Learning to trade is not easy, so stop making trading more painful by not finding the right strategy. In short, if you have mastered at least one trading strategy, it will not be too difficult to learn other knowledge, because you know the whole process and mentality, and you know what is best for you. Decomposing the transaction method, we can see that there are mainly four cores, and each core can be further divided into three levels. Trading Style Breakdown Trading Time Cycle What types of transactions did you make? One of the reasons many traders lose money is that their timing is inconsistent with their own trading style, but this is rarely noticed. These traders were trained and advised by other traders, but no one understood themselves and how to trade. Whether you are intraday trading or swing trading, understand your trading style and find the most suitable strategy, so no matter which trading time period chart you use, you can be profitable. Any chart has advantages and disadvantages. For example, I am a swing trader. Since there are fewer trading signals on longer-period charts, I can choose a few more currency pairs to trade. Any transaction can expand more opportunities on the basis of understanding yourself: 1. Long-term trading: lasting for weeks or even years 2. Swing trading: lasting for several days or weeks 3. Intraday trading: from seconds to hours So the most important thing is to find the trading cycle that suits you. In the meantime, consider how you hope that success in trading will change your life. If you are just supplementing your income and enjoy trading, try day trading. If your goals are big, maybe give it a try. Try volatility or long-term trading. You don't need to pay too much attention to how other traders trade and how much they make, you'd better focus on yourself. Trading straregy Second, you have to consider what strategy to use. Are you interested in fundamental analysis or technical analysis? Most people probably use both, but there's always a more important strategy. It is not excluded that a few people use both equalizations, or rely on only one method of analysis. Therefore, it is necessary to study how to choose the corresponding trading strategy. graphic type The next step is the chart type. This chart is mainly based on trends and is divided into two categories: 1. Counter-trend charts: you look for price changes in the chart 2. Trend chart: You have to trade with the trend Many strategies don't fall into one specific chart type, so you can separate them out and decide how they work for you according to your own style. The following are examples of different categories: risk level Risk is a straightforward topic, in simple terms, I would personally analyze it as follows 1. Low risk: less than 1% per transaction 2. Medium risk: the risk is 1%-2% 3. High risk: higher than 2% But I still recommend that most traders at least start trading with less risk. If you keep proving that you are capable of taking high-risk trades, then readjust. In short, do what works best for you. What's next? Considering your own trading style should start at the beginning of the transaction, but the idea must be correct, sometimes the way we want is not really useful to us. For example, a trader thinks that day trading is exciting and exciting, and wants to do day trading, but the reality is that he has a lot of work pressure and has two children, so swing trading may be more suitable for him. If you don't know what method is suitable for you, you can open a demo account first and try various time charts, strategies, etc. Anyway, the demo account has nothing to do with whether it is profitable, you can use it for testing. Remember your goal is to find the strategy that feels most comfortable to you. Take a month to do this and you'll find the process worth it.

old troublemaker in mountain city

How to formulate trading goals scientifically and find your own trading "root point"

江州司马

Everything is forewarned and there is a clear and reasonable trading goal, which has very important guiding significance for carrying out trading practice activities. Whether the goal is appropriate or not directly determines the success or failure of the transaction. The formulation of trading strategies should be goal-oriented and stage-by-stage management. The setting of transaction goals should be specific and achievable. Pursuing vague or unrealistic goals will lead to uncontrollable actions in the process. Before setting goals, you need to understand a truth. The higher the expected profit rate, the lower the probability of realizing a profit and the higher the probability of a loss. The lower the expected profit rate, the higher the probability of profit and the lower the probability of loss (see the figure below). Draw it casually, it probably means this. It can be simply understood that if you have low expectations for trading profitability, you will eventually make money, and if you have very, very high expectations for trading profitability, you will eventually lose money. What is root point? When we set trading goals, we should consider the equilibrium point of profit rate and profit probability. I call this point the "root point". The root point is unique in mathematics, but not in reality. The root point will be affected by traders to produce differences. Why is it called root point? This point is the trading target and the "root" of all trading decisions. It should be noted that the root point is an aid to help us set trading goals. In theory, unless the expected profit is infinitely close to zero, the risk of trading still exists. Appropriately high risks help us obtain considerable profits, but the risks must be within the controllable range of the account. Controllable risks determine the profit rate, the root point, and the transaction goal. It determines what kind of trading strategy we use and determines the success or failure of the transaction. In this way, the essence of trading is actually risk control and management. How to measure and determine the root point? I'm not very good at mathematics, and I don't know how to calculate. I need a mathematician to give a tutorial on writing formulas, thank you. In fact, the root point in the mathematical sense is more of an auxiliary meaning, and there is no need to pursue specific numbers. When formulating the root point at the practical level, the principle of risk control is given priority, that is, to lower the profit rate expectation, and a certain point on the lower right side of the function curve is adopted. The target decomposition based on the root point assumes that a 12% annual income target has been formulated. The annual target needs to be decomposed into monthly targets, and it is enough to follow up the target of 1% per month. Do you think it is difficult to achieve 1% per month? In fact, it is very difficult, because it is impossible to have 1% every month, but it is very simple, some months are faster, some months are slower, and it is not difficult to complete the goal of 12% in a year. Goals and Trading Strategies Trading goals directly affect the use of trading strategies. If a trader pursues a monthly trading goal of 1% and has to fill up his positions, I think the trader really doesn’t understand his goal what is it. What should I do if the transaction is overfulfilled sometimes? I catch one or two waves of the market almost every year. These tiny opportunities bring a large proportion of profits. I regard them as trading gifts and gifts from the market. Since it is a gift, of course it will not always be there, and the influence of receiving gifts should be eliminated in terms of trading mentality. Trading goals and trading technology are not mentioned in the whole article. There must be many friends who are only technical. Let me express my point of view. I think technology is useful. Research less. But technology doesn't always work, and for technology to work, certain conditions need to be met. Within a reasonable profit expectation, technology is effective, beyond this range, the contribution of technology to profit will be invalid. It's as if Newton's three laws of physics are valid in a world of low speed, but they are useless in a world of per capita light speed. The technology is still the same technology, and the market is also the same market, but is it not surprising that the results are different with different profit expectations? Not surprisingly, excessive profit expectations can only be filled through leverage. Leverage can bring profits as well as losses. When the risk is higher than the limit that the account can bear, no matter how high the technology is, it is afraid that the chopper will not be good.

Forex Trading Essay

Five mentalities can lose all your trading investment funds

alien space

1. Get rich overnight, the mentality of a gambler Trading and investing are risky and highly profitable, and there is every chance that you will get rich overnight. But this is definitely not a reason why you can devote yourself to trading with a "get rich mentality". Many people compare currency trading to gambling, and think that once "contaminated", it is difficult to quit. It is not known that these people have a deep-rooted "gambler mentality" from the beginning. Investing is not gambling, just like "adventure" is not the same as "risk". It is precisely because of the existence of this high risk that you can't just think about "getting rich". This kind of low-probability event will only disturb your mentality. Strictness, prudence, and discipline are the qualities you need to possess. Treat currency investment as a job, use the discipline of commuting to and from get off work every day to regulate your transactions, throw away the greed of gamblers, and add more piety to pilgrims, only then can you go long and far on the road of investment. 2. Random trades without a plan When you're new to investing and you've made some money from the start, you'll love it pretty quickly. Your number of transactions starts to increase, you will place orders at will with a fluke mentality, you will take full positions, start to use high leverage, and even forget to set stop losses. Trading becomes random without any strategy, and a bomb that may detonate at any time is quietly buried under your feet. In this crisis-ridden market, it is impossible to survive without strict discipline. If you just hold the mentality of playing and want to get out of the whole body, then the chance of success is almost zero. Although the investment market is risky, as long as we adopt strict risk control methods, we can control it at a low level. The plan is the first to be formulated and strictly implemented. You must keep in mind "no plan, no trade" in currency trading. 3. Blindly follow the trend, follow what others say In the foreign exchange market, just like the stock market, it is full of all kinds of news. Most people follow the advice of others in their transactions, but they lack their own judgment. If you rely on brokers, experts, friends..., have a soft spot for market rumors and gossip, and think that you can make steady profits just by following their advice, then this will be a trap for you to fall into. "Hear the circulating market information, and then make a judgment based on it", experience tells us: either the information has long been out of date, or it was originally carefully planned false news. You are used to listening to other people's eloquence, and one day you will find that you would rather believe in the mistakes of others than insist on your own correct views. If you complain to others because of this, and you are unwilling to be responsible for the consequences of your own follow-up, then you will lose the opportunity to correct your mistakes, and your investment will come to an end. 4. Irritable, determined to go my own way Currency trading is 70% mentality, 30% technology, and 20% market. Who would not want to grasp this 70% mentality? It looks simple, but it is not so easy to do! If you start to be impetuous, then trading will become as bad as your mood. Controlled by emotions, sometimes you will make irrational actions, trade when you should not trade, blindly open and close positions, and trade frequently, just to prove the accuracy of your method, and throw the safety of funds in the market. side. In fact, when you are under the control of emotions, you may not prevent simulation operations at this time. For example, Industrial Investment provides a variety of platforms for investors to participate in simulation contacts. In this way, not only can reduce the loss caused by blind copying during this period, but also achieve the purpose of alleviating emotions and adjusting mentality. Currency investment is like a long-term and grand project. It cannot be impetuous but can only be accumulated little by little. Although most of the transactions are short-term, from the investor's mentality, it is necessary to look at ten years, twenty years or even a lifetime. Only with time can we develop a calm and calm attitude. 5. Never conclude, repeat the same mistakes Have you ever used a tried-and-true trading method and feel like you have found your trading bible? Have you ever read an authoritative recommendation in a book, and these are regarded as wise words? Have you followed the advice of experts from the media, but in the end it didn't work? Do you…… The key is whether you have made a serious summary of your trading methods? There is no specific way in trading that suits everyone. You should treat the knowledge you come into contact with with a skeptical attitude. Only self-summarization can keep you awake, and then find a set of effective methods for yourself. Therefore, you must constantly conduct self-summarization. If you have never done it, then you may not even understand your own trading habits. This kind of ending can only be that you repeat your mistakes again and again without even realizing it. It's only a matter of time before all the money is lost. Trading is not so much an investment plan as it is a spiritual experience. People who have come through are calm;

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