How important is trading technology? What is driving our transactions?
I think it is risky to talk about the importance of trading technology, because being attacked by technical idiots is a certain result. Because I want to say that pure technology is really not important, and it will not even account for the proportion of transaction 5. Why pure technology? This is also a narrow technical indicator commonly used by all of us. This needs to be distinguished. Logically speaking, broad trading technology should be a systematic whole, which includes trading outlook, mentality, execution, discipline, fund management, technical indicators and tools. But at present, when most people talk about trading technology, it is technical indicators. In order to understand it better, we will talk about technology in the narrow sense that people understand. Why do you say that trading technology is not important in the whole transaction? I believe that everyone can have a general judgment from what I said above.
Let me explain in detail here
1. Why traders attach so much importance to trading skills There are historical reasons and objective reasons. The historical reason is that the development of China's financial market is too short, and there are many chaos, which breeds a lot of agencies and market analysts. In order to better develop the market, this group uses technical tools to attract Customers, because technology tools are the most intuitive.
Therefore, the first batch and the second batch of countless batches of traders learned technology from the very beginning. Everyone knows that people have preconceived natures, and technical tools and technical indicators are deeply imprinted in the minds of these people. Since then, I can't extricate myself.
The objective reason is that the historical market is clear based on technical indicators, and accuracy and certainty are high-probability winning events. In addition, technical indicators seem to be easy to learn. Unlike concepts, concepts, discipline, and execution are things that cannot be seen or touched. Mysterious things take a lot of brains People are rarely willing to do things that take a lot of brains. Trading technology is different, it can be clearly reflected on the disk. This is why trading techniques are so widely available.
2. Trading technology in a broad sense is a complete system, which includes not only technical indicators but also trading concepts (more appropriately, philosophy and philosophy, if most people don’t understand, let’s talk about trading concepts) and so on. Trading technology is only a small part of trading. Then trading technology is not all you study. I believe everyone should have a good idea of what areas to work on. To extend here, don't you think the matter of trading is terrible. Trading strategy, trading mentality, execution, trading discipline, fund management, trading skills, any one of which goes wrong will cause fatal damage to the trading account. It is like the short board of a wooden barrel. If there is a problem, it may be a big problem. Therefore, it is narrow to focus on technical research, and the path of pure technical research will not work on the road of trading.
3 So what influences our transaction?
First of all, I think it is strategy, which is also part of the trading philosophy. Trading is like a war between two armies. What is the current terrain and where do you want to fight from? How many troops do you plan to send? What is the retreat plan if the situation is good? It seems very broad, but if you want to do well, you must have this strategic thinking. If you just want to snipe one or two enemies and end it, I don’t believe that you can win a big victory in this market and make big profits. If this thinking does not change, there is no overall view, and if strategic thinking sets up single-minded thinking, I will say that these people are the order porters in the market and the coolies in the trading market. Think about how many years you have worked as a coolie? Have you made a fortune? Listen to it again, and think about it after you turn it off. This could change your trading career.
Talk about mentality again. Human nature is greedy, and human nature also has a fearful side. Greed will make you emotionally trade and want to place orders to make profits every moment, and greed will make you take heavy positions to gamble. Greed will make you want to make more profits, and you should get out of the market instead of getting out. If you lose money, you are also greedy, because you always want to make the loss come back.
Fear means not daring to place an order, and being hesitant when an opportunity comes. Fear means making money and fear of profit taking. Hurry up and pocket the profits. It is true that transactions are anti-human. Everyone has it, and I also have greed and fear. Human nature cannot be changed. Some people say that human nature cannot be changed, what should we do? I said there is no way, but it is controllable. We need to put the greed and fear of human nature in a cage and let it work for us. Force yourself to cut losses and let profits run. Push yourself again and again. When one day you taste the huge profits brought by anti-humanity transactions, you will naturally be willing to try again. Maybe we can control human nature. Everyone has seen the experiment of conditioned reflex, that is, holding the meat to ring the bell when feeding the dog, and then the dog will bleed when it hears the bell and there is no meat. Don't think too high of yourself. If you want to train yourself like a dog, one day you may become numb when entering orders and holding positions. Although the words are harsh, I believe it can wake up the dreamer.
The third is execution. I didn’t make the right order, and ran away after seeing 200 points and taking 50 points. This is a mentality issue as well as an execution issue. Mentality is the foundation of executive power, so I won't talk about it here. Train yourself like a dog. Don't be hypocritical, it's better than being slaughtered by the market again and again.
I won’t talk much about fund management, it’s a very important topic, I’ll talk about it separately later
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