Continuing to prescribe to novices today is my second prescription: take advantage of the trend and strictly stop losses.
Let me first make a point: novices will definitely lose money.
Maybe some novices don't admit it, but I still make money myself. Maybe the novice was lucky for a while and did make some money, but you can rest assured that as long as you are still in the market, you will pay it back sooner or later, without exception. Countless people with high IQs in this market are struggling so hard to achieve stable profits. You, an idiot novice, fantasize about starting to make money as soon as you enter the market. It would be great if the market was so easy.
Novices will definitely lose money when they first enter the market. This is the tuition fee you have to pay, and there is no way to avoid it. However, there are different ways to pay this "tuition fee". I have a way to make you pay less.
Before going into details, let me talk about this "tuition fee" issue. In fact, most of the investment methods and ideas are written in books, or some veterans may have told you a long time ago, such as stop loss, you may have heard it and think it makes sense. But this knowledge does not belong to you, because you have not practiced it yourself, and you will not appreciate the value of this thing without a heart-wrenching loss. Wang Yangming pays attention to the unity of knowledge and action. If you only know this concept, but cannot fully integrate it into your bone marrow, and cannot skillfully apply it to specific transactions, you are not really "knowledge". Not only novices have to pay tuition fees, but veterans like me also have to pay "tuition fees". Only when you lose money and pay the actual cost will you be impressed and have a long memory. I very much agree with the "evolution" concept put forward by Dalio in "Principles". Every time you lose money in an investment, an excellent investor will learn something from it, allowing you to evolve yourself, so as to reach a new level.
Since losses are inevitable, novices please remember: when you first enter the market, put less money, and don’t be fooled by some outside institutions or some black-hearted platforms, put all your net worth into this market, and fantasize about getting rich overnight. A person needs to understand his own risk tolerance. I suggest putting no more than 20% of his available funds in the market. Even if all losses are lost, the overall risk is still controllable. If you are a novice trading, in fact, it is enough to put 1,000 US dollars in the initial stage. If you do this 1,000 US dollars seriously (there is a high probability that your position will be liquidated), you can learn a lot.
In the process of trading, please strictly follow the advice I gave: take advantage of the trend and strictly stop losses. At present, many investors are tricked by some trading platforms. These platforms (MT4) are essentially gambling platforms (all market makers inevitably have to bet against customers). The so-called gambling platforms actually have a deep understanding of the investment market. Law, the vast majority of investors lose money, what you lose is what they earn, and what you earn is what they lose. Because these platforms will provide extremely high leverage (usually starting at 100 times, and many times 200-500 times), the purpose of such a high leverage is very simple, which is to let you quickly liquidate your position.
Therefore, I suggest that ordinary investors should choose a good trading platform, preferably with a leverage of 10 to 20 times (including up to now, my own platform is only 10 times and 20 times for gold), and 5 times for novices. . High leverage is a double-edged sword, and there is a high probability of hurting yourself.
Special attention should be paid to: Do not follow the teachers of these trading platforms to make orders. There are two reasons: one is gambling, the nature of the platform itself determines that he wants you to lose money, and it is impossible to teach you a good investment method. The second is profit. The teachers of the platform will definitely let you take heavy positions and short-term fights, because they can earn your commissions first, and second, they can make heavy positions so that you can quickly liquidate your positions. For a truly reliable trend investment, the number of transactions is very small, and a single order may be held for a long time (for example, my yen list this year took more than three months). This will make you fall into a huge misunderstanding as soon as you enter the market, and you will suffer serious losses. Back then, I was also a person who came here. I followed a foreign trade teacher to make dozens of orders every day, and the position of 3,000 US dollars was quickly liquidated. Later, I saw that the commission was paid more than 1,000 US dollars.
In terms of stop loss, the easiest mistake for novices to make is not to stop the loss. After the loss occurs in the order, you may carry it over a few times, which increases your confidence. But if you are not willing to stop the loss, I guess you will not survive more than three moon. Investors with a little experience know the importance of stop loss, and they will also tell novices that if novices cannot pass the stop loss, it is best to exit the market as soon as possible. However, most novices tend to fall into another misunderstanding when it comes to stop loss: strict stop loss becomes narrow stop loss, stop loss is important, but if narrow stop loss or disorderly stop loss becomes chronic suicide or delay to oneself Execution, of course, is better than sealing the throat with a sword. Stop loss is an extremely important link. It may take you many years to figure out how to stop loss, including me now. (I won’t expand on how to set the stop loss specifically. It is impossible to explain this problem clearly without a few thousand words)
Why light storage? Light positions are good for novices. Light positions, such as no leverage at all, when the market fluctuates violently, the profit and loss are not large, and your mentality will be much better. At the same time, because of light positions, your stop loss can be relatively wider. Stop losses will not be knocked out frequently, and light positions can also allow you to not lose too much when you have a loss, and you can survive in the market for a longer period of time. In fact, even if I am a veteran, I still recommend light positions. I have experienced many times in the market to look in the right direction, but lost money. In the final analysis, the position is too heavy, unable to withstand the retracement or shock of the market, and is forced to stop the loss and exit the market.
What is Homeopathic? It is very simple to say, that is, the long market only goes long or waits and sees, and the short market only goes short or waits and sees. The reason is very simple, but very few people can do it. But there is a core here, how to judge whether the current market is long or short? What is the basis for your judgment? Worst of all, perhaps most of the market is in a state that is neither a bull market nor a bear market, but a choppy market. It is not easy to solve this problem. I suggest that you learn more about fundamentals. The general direction can actually be obtained through fundamental analysis.
Well, I chatted a lot today, and I feel that what I said was very scattered. I hope you can gain something from reading the article.
In the end, there is still the same sentence: the article does not ask for a reward, you can forward it to your friends who are investing, thank you
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