Hui Classroom: The experience sharing of a veteran trader, these 3 points are the deepest feelings in trading for more than 10 years

​​Content source: Wechat public account Huiclassroom

I don't think it is a golden word in the foreign exchange circle to directly tell you at what point to enter the market and what point to stop loss.

What really feels the most is the sharing that can trigger one's own thinking and inspire one's own investment behavior.

Today, Hui Classroom will share with you the thoughts on the road of foreign exchange investment, hoping to inspire your trading.

Enter as a scholar

It is said that in the first few years of trading, a trader should regard himself as an apprentice. In the process of learning while doing, don't expect major profits, only take a small amount of capital risk, keep capital, and let yourself have enough trading experience.

During the study period, pay attention to what you get on paper and you will eventually feel shallow. No matter how many books you read, how much trading experience you read, or even simulated trading, it is not worth the real foreign exchange market trading.

Simulated trading can only make you more familiar with the details of operation execution in your own trading and test your own ideas. But you can't imitate the trading psychology in actual combat, and you have different moods when facing losses and profits. For example, a loss of 1 million in the simulated trading may have no effect on your life, but a loss of 1 million in the real trading will make your mood fall to the bottom and directly affect the prudence of the next transaction.

The state of learning while doing may last for 3-5 years, and wanting to learn better things will inevitably be accompanied by learning costs. Some Huiyou reported that they spent about US$50,000 in tuition fees before they were promoted from novice to veteran. The tuition fee here includes not only the study fee, but also the experience fee handed over to the market.

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Be prepared to lose at the beginning

I may have repeatedly mentioned that 80% of investors lose money in the first 1-3 years of trading. So if you are not mentally and financially prepared to accept losses, I am afraid you will not survive until you can make money.

Some Huiyou broke the news that in the first three years of trading, you must prepare a starting capital of 25,000 to 50,000 US dollars. This may poke you again. Most people think that the cost of foreign exchange investment is low, and it is enough to prepare a few thousand dollars, and they will stop doing it if they lose money. If this is the case, it is really better to put the money into a fund or deposit it in a bank. Because doing so will not end well.

The essence of foreign exchange trading is that you can afford to lose. If you have the mentality that you can't afford to lose at the beginning, then don't enter.

Therefore, foreign exchange investment still requires a certain cost. In addition to basic living expenses, you must have sufficient investment funds. There are also some Huiyou who borrow money to invest, which will make him frantically trade with the mentality of winning, and with heavy psychological pressure, the final investment result will be much worse than before.

Knowing this, your initial goal in trading should also be to preserve capital, not to make money. When you shift your focus from making money to not losing money, it becomes easier to make money.

Just keep the trading system simple

Many Huiyou believe that the more complex the trading system, the higher the accuracy and the greater the profit potential. But it can't.

Because the market trend is inherently uncertain, no matter what trading system is used, it is predicting the future trend. Prediction with 10 conditions and prediction with 2 conditions are both a kind of probability. This is not a problem of "many people are powerful", but each condition is independent and has uncertainty. Forcibly combining these conditions together will make your trading system unfavorable for execution.

The core of the trading system is to regulate your own transactions and do a good job of risk control. So the point is to be easy to execute, and to stick to it and keep polishing.

Therefore, as long as the core things such as fund management, technical analysis, and trading rules are done well, the trading system should be simple.

The above is today’s sharing. There are still many good habits and correct cognitions on the road to profitability in foreign exchange trading. The above is only a small part, but I think this is also the most relevant to everyone.