My own molecular trading, focusing on foreign exchange derivatives trading
On the simplicity and complexity of foreign exchange - the process of foreign exchange learning, one is technically simple; the other is mentally simple. Only by doing these two things can foreign exchange become truly simple. Simplicity and complexity are interrelated. Simpleness without complexity is not real simplicity. Simpleness that comes out of complexity is useful simplicity. If you look at foreign exchange too complicated, then foreign exchange is complicated. If you look at foreign exchange simply, then foreign exchange is simple. Forex complexity and simplicity is all up to you
Foreign exchange is simpler, nothing more than long and short, two directions. Then foreign exchange becomes simple. In fact, you don't need to know the essence of foreign exchange 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? 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 foreign exchange: It is a habit to lose money steadily, how to do it and how to lose money. Everyone has this experience. When they first started doing foreign exchange, they might still make money, and they made money in a daze. Even make big 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.
Steady losses are a habit. The more you do, the more you lose, the market is the same as doing it right. It seems that the dealer looks at his own list, and specifically kills his 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 habitual thinking and behavior, a series of factors will cause you to lose money steadily, and you will lose as much as you do. Human nature is like the gravity of the earth, holding you back and preventing your speculative dreams from taking off. It seems that this period of time is a dark period for foreign exchange, a period of time when there is no hope and no light, and most people are eliminated during this period.
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. It is a manifestation of a person's maturity, stability and profitability.
A mature, stable and profitable person with an open mind, a calm mind, and modesty towards people and things. Some people say that a foreign exchange person has gone through a few more rounds than most people, because he has gone the way he should go. Experience the test of life after death. Therefore, his mentality has improved and his heart has grown.
Foreign exchange is simple and easy to say, but difficult to say. Anyone who has been doing foreign exchange for more than 5 years and has been doing foreign exchange full-time for more than 5 years. You ask him, what is the main reason for your loss of money? No one said it was because of technology. It's about mentality and execution. Everyone has their own special indicators and signals. The technology of foreign exchange is not difficult, what is difficult is to go one step further.
The learning process of foreign exchange is from simple to complex, and then from complex to simple. Most people have achieved technical simplicity, but the mentality is complex. Most people lose money because of complicated mentality. How simple is it technically? Find a set of your own basis for order making, a basis for order making that can be profitable, some people call it a system and others call it a rule. In short, it is your own basis for ordering. Then convince yourself to trust him and rely on him.
In the face of losses and stop losses, everyone has fluctuations and emotions in their hearts. You have to learn to adjust your mentality and make losing money a happy thing. Lose money happily and place orders with confidence.
The secret to profitable Forex lies in the bullshit, the right bullshit. Because you don't have sword skills, even if I tell you the sword formula, you won't be able to use the sword. When you make a stable profit, you will find that many people have the same or even the same concept of profit, but they say it differently.
You must have an effective price forecasting system, and more importantly, a good fund management and risk control mechanism. Treat transactions with a "scattered" and "permanent" perspective, and have a long-term probability advantage in the speculative market, rather than putting all your eggs in one basket. This is all about financial transactions.
My understanding: a trading system, a proven stable and profitable system, plus trading rules, plus fund management, multiple varieties, and risk diversification. Occupy the probability advantage. Stick to it for a long time.
Talk about stop loss. If the stop loss can be done well, basically no loss can be achieved. It is also a sign of entry. Stop loss, once there is a mature system, the stop loss becomes clearly visible. When do you need to stop loss, when the loss is temporary, and when you need to stop the loss and you can follow up the order.
Here comes the problem, that is, you are not given the opportunity to stop losses. Institutions take extreme measures to make it too late for you to stop losses. Once people stop losing control, there will be a kind of gamble, let go and let their losses continue to expand. Finally there is an 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 little price rebound, and you will stop the loss. This is the result that the organization wants.
Here comes the problem. It is the stop loss back and forth, which is also a problem for many people. As soon as the loss is stopped, the price will come back. Not only loss, but no loss. 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 big profit. Finally, when encountering extreme market conditions, there must be means to deal with them.
You have to believe and admit that any subsequent results can happen after opening a position. This is not what you should pay attention to. You only need to pay attention to your stop loss position and profit closing rules. Otherwise, it is impossible to repeatedly speculate and analyze foreign exchange transactions. Do it, your success will come from your adherence to the rules!
Learning is endless, learning does not necessarily lead to success, and even the "door" cannot be entered without learning.
Therefore, once the problem of stop loss is solved, it proves that your system has also been improved. If the stop loss can be achieved and executed, there will be no loss, which also means getting started. Establish a correct trend trading concept, form a trading system, and then concretely formulate rules, and then put them into practice, constantly restraining one's human nature, and fighting against oneself. This is a process. This is a learning process, a process of experience, a process from complex to simple, a process of human experience. A process of constantly improving the rules of the system and reshaping itself.
Traders focus too much on money, money will lose your heart, money will always make your emotions difficult to stabilize, those who don't focus on money, but on the implementation of the rules can often survive and succeed
When you have a system, opening a position is your first step. Because opening a position is either missed, it is too early, or it is facing a stop loss after opening a position. You must overcome your own fears.
The second step is to stop the loss, which is more difficult. Because it is possible to stop the loss and the price will come back, and it is possible to continue to lose without stopping the loss. There is no way to be 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?
But you just have to go through the first step and the second step. You will find that, hey, you can basically do it without losing money. You gradually gain self-confidence, and you are equally confident when you lose money. You can even turn a stop loss into a profit.
If you are patient, you can be patient for several days without opening an order. 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. Faced with a stop loss, you can cut it without hesitation. You are not only not heartache, but very happy.
These are all fragments of the process of psychological maturity. Enlightenment to system, to rules, to self-confidence, to belief.
Enlightenment; my experience is enlightenment, the market has a trend. Simply put, follow the trend and stop the loss.
System; my experience is to find a way to divide the trend. Simply put, you can identify the market.
Rules; my experience is to make the system concrete. The simple point is to find the opening and stop loss points.
Confidence; my experience is the confidence brought to you by system execution and review. To put it simply, your system can make money.
Belief; my experience is to communicate with the heart and form beliefs and religious beliefs in the brain. To put it simply, you absolutely believe in your system and rules.
As much momentum as you follow, you will have as much money. As much as the trend follows, there will be as much stop loss. How long will it take to follow the trend. Follow the trend that you can do, and follow the trend that you can lose.
Experienced stable losses, to small losses, to no losses, to small wins. It came step by step. After going through it, do it by feeling, find the system to mess with it, and finally continue to accumulate and form your own order system. Can wait, dare to chase. Orders are becoming more and more mature.
The technology is getting simpler and simpler, and the mentality is gradually becoming simpler. Now I can wait and dare to chase. Dare to stop losses and make profits. The process of implementing foreign exchange rules is also a process of persuading one's own heart, constantly convincing oneself to make oneself better and better. The practice of human nature starts with stop loss and stop profit. Lose willingly, win confidently. Foreign exchange is a process of solving various psychological obstacles brought about by speculation, and it is also a process of reshaping your own behavior. The early stage is the process of finding rules and forming a system. Most of them failed to pass their own stop loss psychology. The second is the psychological barrier of holding positions. In the face of the ups and downs of the market, I always change myself at will. The second is the psychological obstacle of taking profit. Sometimes, it is more difficult to find the stop profit than the stop loss. These psychological barriers, with the continuous refinement of your technology, the continuous improvement of the rules, and the continuous improvement of the system, time will change you, from trembling hands at the beginning of placing an order, unable to sleep overnight, to several days after the final order. look.
After you have your own system and rules, you will find out. I still can't really make money by myself. Because I can't do it myself. At this time, what I was facing was that the execution test was very confusing, so I went to various forums to see how other people passed this test, and I also read a lot of books. Later, I was relieved, it also takes time, from knowing to doing, I need to reshape my trading behavior, and it also needs 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.
For most and normal people. Only after a long period of experience will you form your own system and rules before you get started. If you want to really make money, it will take a certain amount of time to transform the system into behavior. So, most people, normal people. If you want to make money from foreign exchange, it takes time to accumulate precipitation. It is not ruled out that someone who is lucky and smart, or someone who is guided, or someone who has sufficient funds and is not afraid of losing money, breaks this time frame. Establish a correct trend trading concept, form a trading system, and then concretely formulate rules, and then put them into practice, constantly restraining one's human nature, and fighting against oneself. This is a process. This is a learning process, a process of experience, a process from complex to simple, a process of human experience. A process of constantly improving the rules of the system and reshaping itself.
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