The Small Money Trader's Dilemma: The Distillation of Years of Deep Understanding

In this trading industry, there are three main types of traders. The first type is short-term traders, who mainly trade with small funds, the second is mid-term traders, and the third is long-term traders. Dear friends, which kind of traders do you think achieves the best performance? Better yet, which trader achieves the worst performance? As far as I personally understand, the worst traders are short-term traders. The reasons are as follows: First, short-term traders are basically part-timers. They lack enough time to complete knowledge and lack enough time to deeply cultivate the foreign exchange market. Secondly, the intraday trend is very noisy. If you observe carefully, you will find that the foreign exchange market often tosses back and forth, and the backtest range is relatively large. Therefore, traders with small funds lack sufficient capital to resist the noise. The implication is the cost of trial and error. Next, I will talk about the problems of small capital traders in a comprehensive way. If there are any shortcomings, please leave a message below.

It is actually very difficult for traders with small funds to trade. Due to their small funds and low fault tolerance rate, trading with small funds puts forward high requirements for the selection of entry points, so the primary direction of traders with small funds is Improve the accuracy of entry. In addition, the strategy of optimizing the exit is to maximize the profit as much as possible while considering the risk-reward ratio. For the second optimization problem, I personally think that no matter what type of trader is a difficult point, as the saying goes, it is the master who can sell, but most of them are sold early, so many times later they are sold in a very poor trader. The price is really distressing.

Seven or eight years ago, when I was just graduating from high school, I was also a very small capital trader. Its plight was really embarrassing to me at the time, so I would like to share my feelings with you here, mainly in these three aspects: One is inherent nature, the second is financial disadvantages, the third is external environmental constraints, and the fourth is the difficulty of encountering Bole.

Inherent nature is not difficult to understand. Do you small capital traders always want to make quick profits? Due to various restrictions, you cannot have enough time to learn and practice like full-time traders. Fallen down, the dawn is about to light up, but people fall down, it's really a pity. Secondly, due to the influence of this inner nature, we are eager for quick success and instant benefits, and have been going further and further down the wrong path, which is also a major reason for our difficulty in success.

The second one I mentioned above is that traders with small funds can hardly resist the interference of market noise due to their small funds, so the fault tolerance rate is very low. Therefore, they put forward very high requirements for grasping the market start node. For the understanding of market sentiment, there are very few books on the market today, and there are almost no complete system books. Based on this, this is also a difficulty.

The third is external environmental constraints. You must have found such a situation. You will find that there are many people who provide various EA strategies or other strategies in major communities and forums. They often post various lists with excellent performance. These people completely It seems to be for everyone's good, but in fact it is leading everyone into a deep ditch, and the sinking is getting deeper and deeper. These also prevent small capital traders from really learning useful things.

The fourth difficulty is to meet Bole. As a small-capital trader, how many people can get in touch with professional players or professional organizations and get their help? I think it is less than pandas. If you can meet excellent professional players or organizations, It will be easier for you to grow up, and the acceleration will be faster. Finally, I would like to say to small-capital traders here that we, who are disadvantaged in capital and information, have only one direction to work hard on, which is to be proficient in behavioral finance.