Summary of experience in trading survival

The way of survival: It consists of three principles: the principle of opening positions, the principle of short-term, and the maximum amount of risk; as an investor, the minimum level is stable development and survival in recent years, and risk reduction, risk avoidance, and risk control are the top priorities .This requires an attitude.

Experience 1: Reasonably control the position. This is the first, because only when you control the position reasonably, can you have a chance to make a stable profit, otherwise, even if your account has made a profit, it will be defeated in the end. Generally, 5-10% of the funds are entered into the market. If your account funds are only 10,000 US dollars, then it is best for your first order to be no more than one standard lot (100 ounces), no matter whether it is long or short. When the market is good and the entry order is profitable, you can do it with 0.5 hands plus one plus, and the position should not exceed 2 standard hands. On the contrary, if the entry order is losing money, do not increase the price against the market , unless you have hundreds of millions of funds to support. Similarly, for a US$5,000 account, it is best to make an order of 0.5.

Experience 2: Set a stop loss before entering the market. Personally, I am used to trading below the support point and $2 above the resistance point. Why do you need to set a stop loss? You may wish to look at your friends who are doing gold, and see that most of the orders they make are profitable orders. Many orders still lose money in the end because they did not set a stop loss when making orders. One order lost most of the money in his account, and finally couldn't afford to bear the pain.

Experience Three: Mind Control. It is very strange that some customers, when they make a profit, they close their positions after making a profit of 1 to 2 dollars, and when they lose more than 20 dollars, they continue to stay. They are willing to lose money and not make money. An investor's mentality is very important, whether you are investing in stocks, gold, foreign exchange, etc., and mentality is always inseparable. To invest, you must do it with a normal heart. Only by truly doing it out of your own emotions can you see the market clearly. As the saying goes, it is good for a bystander to make a correct investment strategy.

Experience 4: Make orders in the trend. Some investors think that the market has fallen so much that it should be the bottom, so they enter the market with more orders, or they think that the market has risen so much, it should be the top, so they enter the sell order. Often the market will disappoint these people, why? Because the market is not taken for granted, the market has its laws. After a small pullback, the trend enters the market to make orders. Chasing ups and downs may not be feasible, it is important to pay attention to skills.

The capital market is not only a casino, but also a battlefield; gold speculation is a game of money, but also a game of wisdom. Opportunities and risks go hand in hand, and success or failure is only a matter of thought. For a wise man, risk is also an opportunity; for a fool, opportunity is also a risk.