The heartfelt words of a trend trader: I rarely get hurt, and my biggest principle is to avoid risks rather than make money!

talk about money
forex财经

dachshund

Guide:

There are really big investment opportunities that can only be counted several times a year. Only when you calmly observe and establish a trading system that suits you can you capture the opportunity at that time.

Correctly establish a trading philosophy

Becoming a good professional trader is very simple, as long as you can establish the correct principles of surviving in the market, and consistently apply it properly.

The focus of my attention is only all factors related to the trend. After correctly grasping the trend, the odds of winning the entire trading system have been greatly improved.

Don't try to predict how the shape of the white clouds will be different tomorrow from today, you just need to take an umbrella and go out when the clouds are thick. The language in the financial market is - follow up when the trend really breaks through!

The losers far outnumber the winners not only in number but also in the amount of funds, which becomes a prerequisite for the normal operation of the futures market. Therefore, there is a popular saying on Wall Street in the United States: The market will definitely use all means to prove that most people are wrong.

Technical analysis is just to judge whether the trend can continue and whether it will change!

I rarely get hurt, because my biggest principle is to avoid risk rather than make money.

In a down wave, finding support is a thankless task. The speed of the decline is three times faster than the speed of the rise, because fear is more terrifying than optimism.

My confidence comes from my failures. The purpose of the strategy is to allow us to control the risk, not to maximize the profit.

Financial investment is a serious job. Don't pursue sudden profits, because sudden profits are unstable. What we pursue is stable transactions. The essence of trading is not to consider how to make money. The essence is to effectively control risks. If risk management is good, profits will come naturally. Trading is not about getting rich through hard work, but getting rich through risk management!

The concept of "strategy is more important than prediction" is very, very important. Strategy can save your life when you are not accurate in prediction.

We must have a good attitude, believe in our own ideas and models (of course they are proven to be correct), and not change casually just to temporarily lose money. After all, we can slowly climb towards Rome.

If the situation does not change, keep it; if the situation changes, move. When a downward trend does not change, you must stick to your cash; when an upward trend does not change, you must stick to yourself.

dachshund

The so-called "trend" is born from the harmony of all conditions. Fate gathers to produce, and confuses to perish, that's all (Fate: all kinds of factors that promote and generate trends, large and small, in all aspects). When a trend comes, respond to it and follow it; when this trend goes away and another trend comes, respond to it and then follow it; when there is no trend, observe it and wait for it.

Two basic principles for survival in the speculative market: trading with the trend and strict stop loss

The development of things requires a process, just like the turning of a ship, the bigger the ship, the slower and more difficult the turning process will be. Once a trend shows signs, it will continue, even if it turns again, it will take a certain amount of time to complete. This is inertia - the nature of trends!

In a large range, the trend has a strong inertia, or continuity. When the medium and long-term moving average starts to turn, the huge system inertia will make it continue this trend. This is certainty in the market, and smart traders use the inertia of the market to make money!

The real weapon is one's own perception and thought, following the trend of trading --- a technology that will never be eliminated by the market.

I have the means to end errors as quickly as possible and the means to extend correctness as far as possible.

Have you ever heard of technical analysis mistakes? Most people pay too much attention to the study of details, so that they ignore the traces of large graphics. It is impossible to predict daily movements with minimal accuracy, but long-term trends can be judged. The longer the time, the more certain the trend will be. Although the secret is simple, it is extremely difficult for most people to do it. It's not that they don't know, but because of the weakness of human nature.

Do you mean that the upward trend is invincible? Yes, what matters in futures trading is appropriateness, not accuracy.

A clear-headed person is good at judging the situation. They understand that true bravery consists in avoiding danger, not in conquering it.

The best time to intervene is to wait for the trend to go smoothly before intervening. When the trend goes smoothly, the trend is clear, and the development of the trend has become inevitable (rising becomes inevitable), this is the best time to intervene! Changsheng Generals are not necessarily brave and good at fighting, but they are good at choosing the situation, and attack when they must win!

dachshund

How to adjust your mental state when you lose money

There are two most basic rules for a successful trader: stop loss and wait. You may not want to make a small loss, but the result is that the small loss becomes a large loss, and finally becomes a big loss. In this case, you pleaded guilty again. On the contrary, if you make money on the account, you will want to take a profit immediately. The reason is that you hope that the money in your pocket will not risk losing money, that is, making a small profit but losing a lot of money.

If you think that financial operations are just a game, and it is a foul if you do not follow the above two rules, you will naturally follow the rules. These rules should be contemplated each morning and the day's trades should be reflected at the end of the day. If you do not play by the rules, you should be alert so that you can take appropriate action in the future.

The correct way to eliminate psychological stress should be to try to find out the cause of the stress and develop ways to relieve it. There is one very important thing that I must point out, that is, the occurrence of psychological stress is often closely related to the individual's views on things.

Changing one's views on things can indeed relieve personal psychological pressure sometimes. Successful traders view losing money differently than unsuccessful traders.

Most people get restless when they lose money, but successful speculators understand that it is acceptable to lose some money first in order to win money. Perhaps most investors should change their minds about losing money.

Most traders let emotions rule their trades. In fact, any operation that causes problems is more or less related to emotions. The easiest way is to control the individual's posture, breathing and muscle relaxation.

Changing these factors may change one's mood. Decision making is also a major psychological hurdle. Most people will refer to secular analysis or opinions as the basis for buying and selling. In fact, all you need is your own operating system to tell you quickly what to do.


dachshund

Money itself is not important, losing a small amount of money is tolerable, financial operations are a game, and accepting failure is an important key to success.

As soon as they enter the market, they want to know that they will win. The purpose of many people in financial operations is to make a lot of money. This is the reason why they fail, because they pay too much attention to money itself, it is difficult to stop losses when they lose money, and they cannot even make money. while waiting. If you regard financial operations as a game, you must play according to the rules of the game, and everything will become easy.

Trading is a brain game of investment wisdom and a little luck, and it cannot be rewarded simply by relying on diligence and trading frequency. Many investors have a tendency to over-trade. They feel that one hand will itch if they don't do one-handed trading for a day, and their hearts will be empty if they don't have a position for a day.

I was in and out of the market all day long, making myself dizzy, paying a lot of handling fees, and as a result, my account was in deficit. In fact, there are really big investment opportunities that can only be counted several times a year. Only by calmly observing and establishing a trading system that suits you can you capture the opportunity at that time.

Copyright reserved to the author

Last updated: 09/10/2023 04:09

895 Upvotes
2 Comments
Add
Original
Related questions
About Us User AgreementPrivacy PolicyRisk DisclosurePartner Program AgreementCommunity Guidelines Help Center Feedback
App Store Android

Risk Disclosure

Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Any opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. Opinions, market data, recommendations or any other content is subject to change at any time without notice. Trading.live shall not be liable for any loss or damage which may arise directly or indirectly from use of or reliance on such information.

© 2025 Tradinglive Limited. All Rights Reserved.