Profit is the purpose of trading, and the indicator to measure the level of income is the rate of return. The rate of return is a very important trading indicator, but many traders can't treat the rate of return correctly, go further and further on the road of blindly pursuing the rate of return, and even become obsessed and eventually eliminated by the market.
It is extremely important to treat the rate of return correctly, and it is a question that every trader should seriously consider. I would like to share with you the following thoughts on the rate of return:
One: Is the higher the better?
Is the higher the yield the better? Regarding this question, many traders will say: It goes without saying, of course the higher the better.
Then think about why the speed limit on the expressway is 120? Obviously, the roads can carry the load and the car can run at a speed of up to 200 mph. In an era where time is money, why do you have to let everyone arrive in an hour and a half if you can get there in one hour.
This problem, perhaps everyone will think that too fast speed does not necessarily mean that an accident will occur, but the risk behind it is indeed high, because the driver's reaction time is short when the speed is high, and a little carelessness may turn potential risks into accidents. Really accident.
The same is true for trading, high yields are bound to be accompanied by high risks, such as common heavy positions, buying bottoms against the trend, etc. Any success may make you a little rich for a moment, but once you overturn, you will suffer heavy losses. Even if you have superb trading skills, you should use this as a basis to reduce trading risks and maintain a reasonable rate of return under strict risk control.
Two: Does it represent everything?
There is nothing wrong with pursuing profit in trading, but we should also pursue stable profit. The premise of profit is stability.
It is not an ideal state for a trader to make a profit for a while and lose a loss for a while.
Yield is only one indicator in trading. Although the rate of return can reflect a trader's trading level to a certain extent, it does not represent everything.
For example, is a person with a high rate of return necessarily very profitable? Probably not. Trader A has a principal of 10,000 at the beginning of the year and earns 20,000 for the whole year, with a yield of 200%. Trader B has a principal of 500,000 at the beginning of the year and earns 200,000 for the whole year, with a yield of 40%. Do you want to be trader A or B? Don't forget that Buffett's annualized rate of return is only over 20%, but he is one of the top ten richest people in the world.
Three: Does the transaction depend on it alone?
The ultimate success of the transaction requires a lot of comprehensive capabilities, and the ability to obtain income is only one aspect.
There has never been a trader who has been galloping in the market only by relying on high returns.
In addition to relying on profitability represented by the rate of return, trading also relies on the following:
One is to rely on risk prevention and control capabilities, that is, you can stabilize in any market environment and prevent a large withdrawal of funds. No matter how bad the trading environment is, you can relatively completely protect funds and keep the "green hills".
The second is to rely on a certain scale of funds. It is almost impossible to use 5,000 or 10,000 as the principal to obtain considerable wealth in transactions. The third is to rely on time. To accumulate wealth through transactions, you must rely on a long enough time. Only in a long enough time will the market provide you with high-quality opportunities to make you rich. Only time can play the role of compound interest.
We must have a correct attitude towards the rate of return, not only pay attention to the rate of return, try to keep ourselves within a reasonable rate of return, but also not only the rate of return, but also comprehensively develop and improve trading skills.
Therefore, when a netizen asks how much rate of return can be achieved each month through our training, I will not rashly say that I have never had to show personal transaction bills or use exaggerated rate of return for 10 years of fee-based training. Attract everyone to sign up for study, but occasionally send real feedback from students in the classroom. I really don’t want some netizens to enter the classroom because they are eager for quick success. I hope everyone can fully agree with and understand our philosophy. After a period of familiarity and attention, they are relatively trusting It is only under the premise that you really want to participate in our fee-based advanced learning. I am very confident that as long as you study hard, your gains must be worth the money.
Here I also want to remind all netizens who are very interested in the rate of return, don't just pay attention to the rate of return, it is not enough to just care about the rate of return.
Add
