Why should transactions be consistent?

The financial market is a probability market, and transactions are not 100% accurate and full of uncertainties. If you want to survive in the market for a long time, you must have a correct understanding of the nature of trading, and accept the fact that the market is unpredictable before you can get started.

I personally believe that the essence of trading profits is trial and error. As long as you have the courage to accept continuous and limited losses, you will definitely be able to exchange for your own wave of profits. Many traders fail in the market, not because they lack trading skills, but because they are unable to control these skills and have no way to achieve the unity of knowledge and action. This is the weakness of human nature. Only by constantly overcoming the greed and fear in one's heart, and constantly suppressing the subjective with the objective, can one gain a firm foothold in the trading arena.

If you want to look at the market objectively in trading, it is very important to have your own trading system. The trading signals in the system let us do whatever we want, keep our bottom line of operation, maintain the consistency of trading rules, and let the market go!

So how to achieve transaction consistency?

Unified standards for trading signals: For example, if you use the MACD indicator as a trading system, the corresponding consistency is: buy with a golden cross and sell with a dead cross. Once the standards of trading signals are unified, decisions will not be made randomly and subjectively in the market. If the conditions are met, the operation will be performed in seconds, and if the conditions are not met, wait and see and rest. Only in this way can we know how to deal with positions in the current market.

Unification of position ratio: Applying the fund management method of profit, loss and contraction, the position allocation for each trading signal should be the same ratio, so as to avoid the phenomenon that the order volume is small when making a profit, and the order volume is large when losing money, so that the fund management The system has a long-term probability advantage.

Unification of execution power: It must be strictly executed when there is a trading signal, rather than selectively executed. The behavior of disloyal execution of one's own trading system will definitely cause harm to one's own account funds. The result of this behavior is to constantly damage one's morale, and constantly denying oneself will only waste time and money!

Keep the above three unifications and not be swayed by any temptation and interference from the outside world, and the market will reward you sooner or later, otherwise you will never be able to escape the siege of losses.

Speculation is as old as the mountains, and there is nothing new in the world. There are no unique secrets in the trading world. Even the most profitable trading strategies have long been open to the public. Those who can resist the temptation of huge profits all the time and stick to their own trading beliefs are the winners and losers. The only difference!

———Lingyunhui