01 Many people think that discipline and mentality control are more important than anything else in trading. However, I point out unceremoniously that the premise of all this is that you must have a complete and market-tested trading system, otherwise, there will be flow. The danger of empty talk.
Most people lose because of stop loss, you stop loss randomly, you stop the loss of orders that do not need stop loss, because stop loss, when faced with orders that need stop loss, you don’t stop loss, carry dead weight, and increase positions If you die, you will lose a lot.
A set of trend ordering system, a proven and stable profitable system, plus trading rules, plus fund management, multiple varieties, and risk diversification... Take advantage of probability, and stick to it for a long time.
02From "Enlightenment" to "Great Accomplishment"
Opening a position is your first step, because opening a position is either missed or too early, or you will face stop loss after opening a position, and face a loss, you will be afraid, you will be afraid, you will be timid, and you will not dare to enter To be single, you must overcome your fear.
Stop loss is more difficult, because it is possible to stop the loss and the price will come back, or it is possible to continue to lose without stopping the loss, and it is impossible to do 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?
If the stop loss can be done well, basically no loss can be achieved, which is also a sign of entry. Stop loss, once a mature system is in place, the stop loss becomes clearly visible: when to stop the loss, when the loss is temporary, and when to chase the order after the stop loss is required.
Here comes the question, what if you are not given a chance to stop the loss? For example, institutions take extreme measures, opening sharply higher or lower, or diving sharply, leaving you too late to stop losses. Once a person stops losing control, there will be a kind of gamble, let it go, let the loss continue to expand, and finally the amount of 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 if there is a price rebound, you will stop loss. This is the result that other organizations want, washing dishes.
The problem comes again, that is, the stop loss back and forth, which is also a problem for many people. As soon as the loss is stopped, the price returns;
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 and big profit. Finally, when encountering extreme market conditions, there must be means to deal with them. Therefore, once the problem of stop loss is solved, it proves that your system has also been improved, and the stop loss can be achieved and implemented, and you will not lose money, which also means getting started.
As long as you have gone through the first and second steps, you will find, "Hey, you can basically make no losses", and you will gradually become confident. When you lose money, you are equally confident, and you can even lose money. Turn stop loss into profit.
You can be patient without opening a single order for several days. 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. Cut it off without hesitation, not only will you not feel sad, but you will be very happy.
These are fragments of the process of psychological maturity, and also my true psychological feelings and process.
However, after establishing the system, you may not have a big profit, let alone great success, and you may even fail to execute it in the middle, because there are still some steps that have not been resolved, and that is the problem of belief.
From enlightenment to great success, it can be roughly divided into six steps, from enlightenment to system, to rules, to self-confidence, to belief, to great success. Take my trading life of more than ten years and the traders I know around me as examples, let’s see:
Enlightenment: I realized that the market has a trend. Simply put, it means following the trend and stopping losses.
System: Find a way to divide the trend, simply put, you can identify the market.
Rules: To make the system concrete, the simple point is to find the opening and stop loss points.
Confidence: The confidence brought to you by system execution and review. To put it simply, your system can make money.
Belief: communicate with the heart, form belief in the brain, religious belief, simply put, is that you absolutely believe in your system and rules.
Dacheng: Of course I don’t dare to say, and I can’t say that I have achieved great success, but I think I am satisfied and my life is satisfied. This is my belief!
03 After going through it, do it based on feeling, find the system to mess around, and finally continue to accumulate, form your own trend order system, continue to sharpen and accumulate, and now you can wait, dare to chase, and the order is becoming more and more mature.
I constantly reflect on my psychological changes in making orders, communicate with myself, subtly guide my psychology, and constantly tell myself what is right and what is wrong. It is like being brainwashed, brainwashed by myself, and slowly formed religion.
It is a process to establish a correct trend trading concept, to form a trading system, and then to specify rules, and then put it into practice, constantly restrain one's human nature, and fight against oneself. This is a process of learning, a process of experience, a process from complex to simple, a process of human experience, a process of constantly improving system rules and reshaping oneself.
04 Comprehension after getting started:
After getting started, you have to face human nature and execution, fear and greed, and yourself. You will find that there are two selves fighting with yourself.
After getting started, you have your own system and rules, and you have a framework for ordering. However, due to insufficient cultivation of my own human nature, due to the uncertainty of the trading market, the nature of pursuing perfection, the complexity of human nature, and the fluctuation of the market. Therefore, even if there is a system, it will not be implemented, and the implementation will not be thorough, so you should:
First, continue to practice human nature, give yourself enough time, let yourself believe in yourself, and use time to let yourself do it.
Second, the non-executive nature of pursuing perfection will make you give up the system you have worked so hard to build, continue to pursue a more perfect system, and walk out of the gate.
In the end of the transaction, the more you will understand the importance of human nature. When you realize the transaction, you will find it very difficult to execute. If the problem of human nature is not solved, it is very difficult to make money. Generally, it is seen after the market. Money is so close to you, you can’t do it, and you don’t do it thoroughly. Becoming a phase problem that haunts itself.
The method of profit is against human nature, against the human nature of most people. So this is also one of the reasons why trading is difficult, and the attitude towards the market:
How is the market going? You are at a loss. I thought in my heart that I really don’t know, and at this time you will be. You give up your subjective thinking and completely listen to the market. Because you have jumped out of the market guessing stage. You don't care how the market goes, you don't know, you really don't know. But you know it in your heart, and I know how to do it. You don't care about external disks, news, news, main positions, and other things. You don't care too much, which only adds to the chaos. You don't care about how the market will go tomorrow, and you don't have to stay up late at night to watch the external market, so you can sleep peacefully.
Looking back over the past ten years, the process of trading learning is a process of becoming simple, one is technically simple, and the other is mentally simple. Only by doing these two things can the transaction be truly simplified. If you look at the market too complicated, then the market is complicated. If you look at the market simply, then the market is simple.
The market is simpler, nothing more than rising and falling, 2 directions. In fact, you don't have to know the essence of 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? policy? funds? Or did you buy it? Still empty. 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 trading: It is a habit to lose money steadily, how to do it and how to lose money.
05 From simple to complex, then from complex to simple
The learning process of trading is from simple to complex, and then from complex to simple. Most people only achieve technical simplicity.
How simple is it technically? Find a set of your own basis for order making, a basis for order making that can be stable and profitable. It has been tested and tested in actual combat. Some people call it a system and others call it a rule. In short, it is your own basis for order making. Then convince yourself to trust him and rely on him.
Don't believe those mysterious tactics and secret indicators, they are just the basis for making orders. You can name your system and indicators "God-like indicators or God's hand".
But the mentality is complicated, and most people lose money because the mentality is too complicated.
Everyone has this experience. When you first start trading, you might still make money, make money in a daze, and even make a lot of 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.
Stable loss is a habit. The more you do it, the more you lose. The market is as good as you are right, as if the dealer looks at your own list and kills your 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 inertial thinking and behavior, a series of factors, causing you stable losses, how to do what you lose.
Human nature is like the gravitational force of the earth, which catches you and prevents your speculative dreams from taking off. It seems that this period of time is a dark period, a period of time when there is no hope and no light. Most people are in this stage was wiped out.
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 is a manifestation of a person's maturity, stability and profitability.
Trading is simple and easy to say, but difficult to say. If you have been trading for more than 5 years, you ask him, what is the main reason for your loss? No one said it was because of technology, they all said it was mentality and execution. Everyone has their own favorite indicator or signal. Technology is not difficult, what is difficult is to go one step further.
In the face of losses and stop losses, everyone has fluctuations and emotions in their hearts. You have to learn to adjust your mentality to make losing money a happy thing, lose money happily, and place orders with confidence.
06 A mature, stable and profitable person, open-minded, calm, and humble to people and things. Some people say that a trader has to go through a few more cycles than most people, because he has walked the path he should go, and experienced the test of life after death. Therefore, his mentality has improved and his heart has grown.
The secret of profit lies in those nonsense, among those correct nonsense, because you don't have sword skills, even if you tell you the sword formula, you can't use the sword. When you make stable profits, you will find that many people have the same profit concept It's even the same, just in a different way.
You must have an effective price tracking system, and more importantly, a good fund management and risk control mechanism, treat transactions with a "dispersed" and "persistent" perspective, and have a long-term probability advantage in the speculative market, rather than putting all your eggs in one basket. That's what financial transactions are all about.
For most and normal people. Only after about 5 years of experience can you form your own system and rules before you get started. If you want to really make money, it will take about 2 years to transform the system into behavior. Therefore, most people, ordinary people, want to make money from the market, and it takes about 7 years. It does not rule out that there are people who are lucky or extremely smart, or people who have expert guidance, or people who have sufficient funds and are not afraid of losing money. , breaking this time frame. With the guidance of an expert, the road is the fastest shortcut, which is equivalent to the fastest way you have traveled for more than ten years, but the biggest problem is that such an expert is hard to come by, depending on fate.
Don’t believe those people who say they can make stable profits within a few months. If so, call your wife out to see the genius, or ask your wife to come out to see Li Gang’s son. His father is Li Gang, and he is not short of money. Don't believe what those trading analysts say, if you can really make a lot of money, trading is such a beautiful and profitable thing, who will be under the control of others?
07 Follow the trend that you can do, follow the trend that you can lose .
For more than ten years, like a monkey breaking corn, I have tried various technologies and methods on the market.
The first 5 years were a process of "finding rules and forming a system". We experienced stable losses, small losses, no losses, and small wins. It was a step-by-step process; In the end, continuous precipitation formed its own trend order system.
Five years later, after you have your own system and rules, you will find that you still can't really make money because you can't do it yourself. At this time, I was faced with the implementation barrier, and I was very confused at first. Most of them failed to pass their own psychological barriers of stop loss; secondly, the psychological barrier of holding positions, facing the ups and downs of the market, they always change themselves at will; It is harder than stop loss.
So I went to various forums to see how other people passed this level, and I also read a lot of books. Later you will be relieved, it also takes time, these psychological barriers, as your technology continues to refine, the rules continue to improve, the system continues to improve, time will change you, from the beginning of the single hand trembling, overnight single can not sleep , I don’t need to look at it for several days after the final order is placed.
From knowing to doing, you need to reshape your trading behavior, which also requires 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.
The process of implementing the rules is also a process of persuading one's heart, constantly convincing oneself, and making oneself better and better; the cultivation of human nature begins with stop loss and stop profit, willing to lose, and confident to win, trading is a solution that speculation brings to you The process of various psychological barriers is also the process of reshaping one's own behavior. For most people and ordinary people, only after at least 5 years of experience can they form their own system and rules before getting started. If you want to really make money, it will take about 2 years to transform the system into behavior.
So, most people, normal people. It takes about 7 years to make money from the trading market. It does not rule out that there are people who are lucky and smart, or people who are guided, or people who have sufficient funds and are not afraid of losing money. Breaking this time frame. After so many years, I now feel that the technology is getting simpler and simpler, and the mentality is gradually becoming simpler. Now I can wait, dare to chase, dare to stop losses, can make profits, and the order is becoming more and more mature.
It is a process to establish a correct trend trading concept, to form a trading system, to make specific rules, and then to put it into practice, to constantly restrain one's human nature, and to fight against oneself. This is a process of learning and experience The process is also a process from complex to simple, a process of human experience. A process of constantly improving the rules of the system and reshaping itself.
I hope this article can help traders get out of the confusion when they are in confusion. Old rules, if you haven’t understood it, please bookmark it first!
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