Technology is only a very insignificant obstacle on the road to success. Behind the good application of technology is the internal strength of trading.
The vast majority of investors put almost all their energy on the summary and research of the trading system. They believe that as long as they have a good trading system, they can achieve sustained and stable profits. However, as their trading experience continues to increase, they will gradually discover that real trading masters can often use an inconspicuous trading system to achieve dazzling achievements.
Technology is only a trivial obstacle on the road to success. Many investment masters can achieve huge profits even by using a simple moving average system. Therefore, there is no mystery to a successful trading system, but how to profit from the system is the real secret.
The ability to use a system correctly is far more important than the system itself.
Many people will have this feeling: Whenever we get a profitable trading system through different channels, in actual operation, it is often not fully implemented due to one reason or another.
For example, during swing trading, there will be some sudden news in the market, which will cause the futures price to fluctuate against the trend, so that it completely destroys our operation plan;
For example, during swing trading, there will be some sudden news in the market, which will cause the futures price to fluctuate against the trend and completely destroy our operation plan; or the continuous loss of the system will cause us to have great doubts about the system; There are also: many problems such as chasing ups and downs and frequent operations due to improper reading of the market, being attracted by the market; and uncertainties in judging long and short trends due to unclear trading concepts, which have seriously affected us. For the correct execution of the trading system.
For the above problems, many people simply attribute them to lack of trading discipline and insufficient execution. And spend a lot of energy to improve the blind operation behavior in the transaction.
If there is a problem in reading the market, change the method of reading the market; if you operate blindly and frequently, you will reduce the number of transactions; , foot pain doctor foot.
But, strangely enough, the problems in the transaction seem to keep popping up. We correct this one, another one will appear, and thousands of problems will appear. Until the end we completely give up the trading system we are implementing. Many people have spent many years on correcting and cultivating their mistakes, even though they have spent a lot of manpower and material resources, they still cannot bear fruit.
What exactly is affecting our execution of an excellent trading system? Please see the following online article:
I have been here for a long time, I used to impulsively post every day to prove how strong I am, and then I lost money, and now I think it is ridiculous. Today is boring. When I go home, there are still so many comrades going forward. Sending money to the main players is still a little emotional, compared to how I was one of everyone before!
Seeing that everyone is still arguing about what method to use to make money, long-term or short-term, wave theory or Gann theory, moving average system, disk sense, etc. ashamed!)
What I want to talk about here is not technology. When it comes to technology, there may be 10,000 people in this forum who are better than me! But why can't they make stable profits? (Not modestly, I have achieved stable profits now, but I don’t expect to be a trader for others. I also drive a BMW now!)
In fact, technology is only a very small obstacle on the road to profitability. No matter what technology can help you make money, the key is whether you can use it, believe it or not! Tell me about my experience, I hope I can give you some help, I won’t talk about technology here!
I may be lucky, just like playing a game to find a bug to cheat. I found a golden key in the futures market. I started doing futures in 2002, and I discovered this method in 2005. How to use it ethically? Making money is different once the money is invested. It has been losing money until the beginning of 2008, with a total loss of about 2 million! The lessons learned, everyone should know that it was nothing more than poor fund management and a bad mentality, which made me seriously disbelieve myself and lost 20 catties (my wife even joked with me that the price of losing weight is a bit high), What to do, stop, in fact, it is very difficult to stop, everyone knows that futures are addictive, and people start to artificially exercise their will, they all say that quitting smoking is difficult, I quit smoking, I did not expect to be quit by me, Then I ran for an hour at a time (of course I couldn’t run for 5 minutes at the beginning), and I gradually gained confidence in myself. By the way, I even went to Lingyin Temple in Hangzhou to burn incense. Anyway At that time, I went to the doctor in a hurry!
I keep an eye on the market every day, but I don’t do any trading. After half a year of rest, I analyze whether there is any problem with my method every day. Sometimes you will lose money continuously in order to catch a wave of market. Half of the times of losses are 3~6 times. The market that has completely turned the book is soaring into the sky, and all the money from the previous 15 stop losses were lost! Later, I recorded a passage for myself, which means that you must not give up. Now I still listen to it when I have time. It is very useful. Warning!)
In July 2008, I asked my father for a sum of money to start trading again. I was lucky. When I encountered a big rubber market, I made more than 8,000 points at a time, and recovered all the losses for several years! Later, I also encountered 13 consecutive losses in the market. This time I was more determined and survived. Now I am not afraid of losses at all, because without the new funds I earned before the losses, I cannot use them in new transactions and cannot make profits. more money! Later, I told a few good friends about my method, but except for my sister, no one made money with this method (my sister or I guarantee that all the money lost will be counted against me, and I will raise 50% if I earn it. The psychological burden is completely operated according to my method)
Now that I have finally landed, I would like to give some advice to you who are still in the sea of suffering. The method is not important, what matters is how firm your will is.
Now, whenever I see many novice traders are still spending years or even more than ten years looking for a so-called good trading system, I feel heartbroken.
I deeply regret that they expended so much energy and went in the wrong direction. Because futures is like martial arts, there are also internal and external skills. Only the perfect combination of the two will be successful.
People who don't trade their inner skills are like martial arts learners who don't practice their inner skills, they can't stand the wind and rain. However, a person with trading skills can make a profit even by using a simple 60-day moving average, and the gap between them cannot be measured by thousands of miles.
But the strange thing is that almost all books only describe and study the trading system and fund management, but there are very few analysis and research on the inner strength of the transaction. But it is precisely the internal strength of trading that is the most important thing in successful trading.
Many people always want to take shortcuts, just want to learn trading techniques that can be used immediately, and ignore the trading skills behind the techniques. What is important to investment success is not the trading system, but the ability of the trader to thoroughly implement the trading system. Trading psychology and trading internal skills determine the ultimate success or failure of a trader.
The difficulty of trading lies not in learning, but in application. The ability to strictly follow the execution of system transactions is the important difference between masters and low hands.
The difference between the strongest traders and the weakest traders is due to their psychological characteristics. Whether and how much profit is profitable has little to do with the knowledge of investors. It is completely determined by the trader's internal skills in trading. It is easier to know than to do. Many people know that execution is difficult, but they don't know the way to crack it.
Successful trading = 90% trading skills and 10% trading skills. However, it is precisely 90% of investors who only care about trading techniques and ignore the most important trading skills in successful trading.
Without trading skills, we may make 10,000 kinds of mistakes in trading, and many people correct them one by one through their own efforts. But with little effect, the effect is extremely unsatisfactory. To get rid of 10,000 kinds of mistakes in trading requires great perseverance, financial resources, and a very long time. The difficulty of all these efforts is beyond our imagination. Even if you finally correct it completely, there may be 10,001 mistakes waiting for you, and even when we correct the 10,000th mistake, we will come back and make the first mistake. There is an endless loop of mistakes that many of us never get out of. Therefore, many people think that futures are really difficult, and execution is really difficult.
In fact, the problem lies in whether you have the internal skills of trading. If we simply solve the problem based on the problem, instead of strengthening and cultivating our own trading skills, then the profit will always be just a flower in the mirror, and the profit will always be so out of reach.
However, through the practice of trading internal strength, many mistakes and problems that were difficult to correct in the past will be easily solved. This is why many people, after 5-10 years of long-term trading and practice, many problems that were originally difficult to solve have naturally disappeared. This is because their understanding of the market and trading is getting better and better with the growth of trading time. The more thorough, the deeper the inner strength of the transaction.
However, we are not in favor of this kind of solution that requires money and a lot of time to accumulate experience and cost a lot. For obvious reasons, everyone has extremely limited time and money. If we adopt a systematic and scientific learning method, we will achieve the level of cultivation that others have experienced in several years or even ten years through intensive and intensive training in just a few days. Of course, we can also improve our own trading skills by reading the trading ideas and trading psychology of domestic and foreign trading masters, but the strange thing is: no book has a systematic and comprehensive description of trading skills. Most of the books only deal with a very small aspect of them. As a result, it is difficult for us to make a comprehensive induction and summary of it.
Trading internal skills: including five aspects: profitable trading philosophy, investors' way of viewing themselves and the market, correct trading philosophy, investors' attitude towards the investment market and firm trading beliefs, as well as trading behavior and trading process in actual combat Content. And each aspect includes many small contents.
For example:
The way investors look at the market includes the way of looking at technical and fundamental aspects;
The impact and judgment of external market and news on the trend;
The operating characteristics of the trend and the judgment method of the trend;
And the relationship between trend judgment and successful trading and many other aspects.
The profitable trading philosophy includes the design principles of the profitable system;
The difference and connection between precise trading and probability trading;
The operating characteristics and trading methods of each of the different systems;
As well as many aspects such as the matching trading philosophy and psychological structure.
Only when investors fully understand and master these contents, will they not lose themselves in actual combat and operate indiscriminately. A person's behavior is often dominated by his thinking, and only when the concept is correct can he act correctly. The more thorough the understanding of the market, the less interference he will receive when trading, and the better the operation will be. A great man is only the performer and executor of his great ideas.
Only by deeply understanding the profit philosophy of trading can we understand the truth that trading more does not necessarily mean making more money. In many cases, the less you operate, the more money you make.
A deep understanding of the above concepts can prevent us from impulsive and frequent transactions in real trading.
For example: in the same-day operation of white sugar, we can often determine the market size of the day according to one or two K-lines at the opening, and enter the market immediately. The correct rate of this trading method can sometimes be as high as 90%. But there are very few trading signals, usually only three to five times a month. But it is precisely these three to five operations that have brought us very rich profits. For example, in the whole month of November 2010, we only traded three times, but all three times we made profits, with an average profit of more than 100 points each time. Since we have very few stops, the positions we use are large and the profits are quite good. My day trading experience is a trading process from frequent trading to rare trading, and simplifying the complex.
If we can deeply understand the impact of external disks and news on trends, we will not be confused and fluctuating between external disks, news and trading signals every day, so as to affect our operations. If we can form the correct trading concepts such as "persisting in using a trading system is the key to success, and the accumulation of trading experience is far more important than the system", we will not be disturbed by other systems, and we will not keep trading. Look for the so-called "holy grail" of trading. If we understand the trading behavior in actual combat, we will not worry about slippage in the transaction, and we will not be confused about whether we need to take profit when trading.
In short, a deep understanding of trading internal skills can solve almost all the problems we have in trading. The deeper your trading skills are, the less chance you will make mistakes in the operation, and the better your execution ability will be.
A whole book can be written for a complete description of trading internal skills. Let's focus on the important role of firm trading beliefs in the entire system trading.
There is a famous Wall Street saying: mediocre traders trade with technology, top traders trade with faith. This sentence fully shows that the difference between a mediocre trader and a master trader does not lie in the level of technology, but in trading beliefs and trading skills.
Many people have a profitable trading system but cannot execute it at all, largely because they doubt the system and do not have firm belief in their own trading system. Therefore, there is a famous adage in the futures industry: We must not only have a trading system, but also a belief system.
People often attribute successful traders to their intelligence and hard work. However, this is far from enough. For investors, the key factor controlling the success or failure of transactions is belief. The size of self-confidence determines the size of a person's achievements , It is said that as long as Napoleon is on the field, the combat effectiveness of soldiers can be doubled. The combat effectiveness of an army mostly depends on the confidence of the general. The confidence of the general before the war can greatly enhance the courage and combat effectiveness of the army. If the general shows doubts and panic, the whole army will inevitably fall into chaos and shake.
A man's spirit and ability, like an army, depend on his will and conviction for support. People with strong beliefs can do amazing things even with the simplest trading system. Doubtful and timid people often get nowhere.
The size of a person's achievements often does not exceed the size of his self-confidence. The prerequisite for success is self-confidence.
So, how do we form a firm belief in our trading system in trading? The answer is simple, that is to be familiar with the system, understand the system, and integrate the system.
Technical things must be integrated with the trading philosophy he deeply believes in, so as to have its inner ideological roots, and such technology can be deeply rooted.
Technology is actually an idea. Only if you fully understand and trust the system, you will be able to use it smoothly without obstacles. The techniques that come from hearsay must lack internal strength when used, just like duckweed in the water, once the wind and rain hit it, it will fall apart and sway from side to side.
The process of traders tending to perfect trading is a process of constantly getting closer to themselves. It is a process in which the external system and the internal self are constantly merging, moving toward consistency and integration.
When we first started trading, we were operating other people's systems and strategies. Therefore, once we encounter difficulties, we will have doubts about the system in one way or another, leading to investment failure. Since then, we have begun to constantly reflect on ourselves in the face of failure, and gradually realized our own trading methods and trading philosophies in trading.
Gradually transform "other people's" into our "own". Only at this time can you completely integrate the system with yourself, and start to build up our own trading beliefs and trading skills, so as to achieve the unity of man and sword realm. Only when you operate completely with the trading system derived from your own practice and perception, can you be at ease and confident, and achieve inevitable and sustained success.
Constant repeated operations and constant insights can quickly turn other people's trading systems into your own. When you first start trading, due to the difference in thinking between you and others, you will often experience some stagnation and rigidity when operating other people's systems. As the number of transactions continues to increase, you will gradually understand the principles of the trading system and trading philosophy, and gradually integrate them into your own thoughts, forming new ideas and beliefs in your mind. A perfect transaction must be one's own transaction, a transaction carried out with a system that one can understand and agree with.
In the whole transaction, if you start to operate without understanding the actual meaning of each step of a trading system and how to make a profit of the whole system, if you can only judge the quality of the whole system from the current few transactions If you understand profit and loss instead of thinking and understanding based on systematic profit principles and market philosophy, this kind of transaction will inevitably lead to loss and failure.
This is the reason why I don't agree to just take a sound trading system and start to operate blindly.
Just like what is said in "Ghosts of Wall Street": Today, there are still people who want to learn the trading methods and trading strategies introduced in a book, and they can successfully move on to the road of stable profitability. This is a big joke, "Turtle Trading System" has been announced for nearly 20 years, but how many people in actual transactions can make stable profits with this excellent system? What you learn through books is only technology, not mentality. Technology can be learned from books, but the trading skills related to technology must be taught by example.
All wealth comes from a clear and correct understanding of a thing. Correctly strengthening and practicing one's own trading skills in the investment market is the only way to successful trading. The constant rule of success is to have profound trading skills and strict trading discipline.
Only if you firmly believe in the system, you can succeed, this is an irrefutable truth.
Finally, let me tell you one sentence to end our chapter: If you cannot strictly observe discipline, you may make 10,000 mistakes; but if you can strictly observe discipline, you will not make a single mistake.
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