1
How to set a stop profit? Set the stop profit at the most recent increase point.
If the market price falls below the point of the last position increase, it at least shows that the timing of the last position increase is wrong. Since you made a mistake, you have to pay a price. The so-called price is to close all positions and wait and see. Never allow your profit list to turn into a loss list.
What if you lose your original position and miss a lot of big market moves?
No matter how big the trend is, it cannot be achieved overnight. It can be understood that the reason for taking profit is that the market has turned into a temporary shock. If the market continues to fluctuate, then you can only choose to continue to wait, and once the market returns to the original trend Track, you need to test positions again without hesitation, open positions, increase positions, and repeat previous operations.
2
It's not that you can't listen, but don't believe it easily. In the market, it is not advisable to use doctrine, but it is also not advisable to rest on your laurels.
You can listen to the words of industry authorities, but you must listen dialectically. What you listen to is not the conclusions drawn by the authority, but his analysis logic. According to other people's analysis logic, you analyze it yourself and draw your own conclusions. This is a reliable basis for trading.
At the same time, I need to emphasize that when listening to authoritative opinions in the circle, it is best to choose two most representative long-short authoritative opinions at the same time, and reason one by one against each other, so that particularly valuable trading information can often be collided.
3
What should I do if my judgment conflicts with the authority in the circle? This is easy to handle, everything has to obey the arrangement of the market trend.
No matter how rigorous your logical analysis is, and no matter how perfect your technical or fundamental analysis is, once your judgment does not conform to the actual trend of the market, there is only one choice: give up!
So can I backhand and follow the actual market trend to make orders? Or can we just give up?
The suggestion is to give up and not make backhand orders. Unless your analysis logic can conform to the actual trend of the market, even if you make a backhand order in time, you may not be able to hold this order. There is a saying in the market that long positions can make money, and short positions can also make money, but those who are both long and short will definitely lose money!
4
A system that allows the operator to remove emotion to the greatest extent. I call it the quarter system.
Specifically, for an operator, the principal is his life. Therefore, I will divide all the principal into four equally, one for living expenses to protect the operator's basic living expenses; one for speculation, and the other two for investment in stable income treasury bonds or time deposits .
Once the quarter of the funds used for speculation loses more than 30%, stop speculation and take a break to reflect. After the rest is over, half of the funds invested in government bonds, that is, a quarter of the original total funds, will be incorporated into the account to continue speculation. If the account is profitable, once the total funds in the account reach half of the original total assets, 50% of the funds will be withdrawn, that is, the original state of maintaining a quarter of the total assets for speculation. If the account loses money, the principle of terminating speculation after a loss of 30% is still implemented. And so on until your principal is completely lost.
5
For an operator, a good board sense includes the following aspects: high sensitivity to numbers; excellent memory; superhuman observation ability; rich experience.
A high sensitivity to numbers is fundamental. In transactions, we are most exposed to numbers. Among these seemingly chaotic numbers, whether you can quickly find out some of them is the basic skill of an operator. Mathematics is the foundation of trading, and no matter what trading method is used, it is basically just a different mathematical model.
Excellent memory. This memory does not only refer to the ability to remember numbers in a narrow sense, but more importantly, the ability to remember the mistakes you have made. You are not afraid of making mistakes in trading, but what you are most afraid of is making the same mistakes repeatedly. Forget the pain when the scar is healed, this is the most common manifestation of poor memory.
Superhuman powers of observation. The same news, the same data, in the eyes of some people are just numbers, but in the eyes of excellent operators, they are huge trading opportunities. This kind of observation is also the basic ability that an operator must possess. Specifically in terms of trading, you need to be able to spot the observation that the supply and demand relationship of commodities is about to undergo a huge change. If you can spot this inflection point, then this is an excellent trading opportunity.
Rich experience. Ultimately, trading is a practical science. No matter how much you learn in textbooks, it is only theory. If you want to earn real money, you must go to the market to really fight. When memory and superhuman observation power are transformed into rich experience power, your disk sense is formed.
After that, you won't have to worry about whether to use logical analysis to trade or to trade by intuition, because the two have been combined into one at this time.
6
The price of a commodity is determined by supply and demand. Similarly, it can be deduced that the inflection point of commodity prices is determined by the inflection point of supply and demand. How to confirm the inflection point? Rely on common sense of life and confirmation of technical analysis
Because fundamental analysis can only tell you that the price of steel will rise in the future, but it cannot tell you when it will rise. If you rashly go long, you are likely to face a long and difficult wait. Therefore, when you find an inflection point in the fundamentals of steel prices, you still need to wait for the confirmation of the technical aspects. Once the technical aspects and the fundamentals resonate, this is the best time for you to enter the market and do long. How to deal with technical conflicts?
don't do it! That's the best way to deal with it.
7
You should be fearful when others are greedy, and greedy when others are fearful.
Reduce your trading leverage. The trading leverage system magnifies your capital on the surface, but actually magnifies your greed and fear deep down. Once your leverage is too large, your greed and fear will get out of control, and you will unconsciously become the 99% of normal people.
To open a position, you need to go through several steps: test position, stop loss, bottom position, increase position, and stop profit.
Leverage must be low when you first open a position, which is the basis for ensuring your survival in the market. And once you have a floating profit, your leverage can be gradually increased. Remember, only a floating profit can increase your position, and only a floating profit can increase your leverage. As for how much to increase your position, it is still the same principle. After adding it, you can be normal at night until sleep.
One of the biggest differences between a mediocre operator and a great operator is the ability to use leverage.
8
As an operator, what should be the most important character? Just don't compete with the market!
It is impossible for a person not to make mistakes in his life. All we can do is not to compete with the market when we make a mistake, and correct it when we know it. This is the most desirable quality for a trader.
For speculation, any technical and fundamental analysis is a tactical-level problem, and these problems can always be learned through one's own hard work. But when your amount of funds rises to the level of a master operator, the factor that can really determine your ultimate success or failure is no longer tactics, but strategic factors.
And the top priority of this strategic factor is: don't compete with the market.
The so-called "don't compete with the market" is actually the "inaction" thought of Chinese Taoism. In trading, inaction does not mean doing nothing negatively when facing the market. The real inaction just completely abandons the subjective prediction of the future market, and uses one's own peaceful heart to feel the real trend of the market. Spot a trend and follow it with all your might. The most important thing is that once you find that your judgment is wrong, don't imagine that the market will return to your original assumption, and you don't have to immediately find the reason for your mistake. The only thing you have to do is to close your position immediately without hesitation come out.
Remember, correcting mistakes is a necessary quality of a good operator.
Especially after you become famous and the market recognizes you as an authority, you will easily have the idea of competing with the market. When your thoughts are contrary to the trend of the market, you will subconsciously make excuses for yourself, and you will want to observe again and give the market some time to correct its mistakes. Remember, this kind of thinking is very dangerous! The most feared thing about speculation is hesitation. In order to protect their face and prove their judgments are correct, many operators waste many good opportunities to stop losses and admit their mistakes. Often when he knows that he is really wrong, his positions are often unable to extricate himself.
Remember, once your position direction is opposite to the actual market trend, you don’t need to ask why, cutting out your position is your only wise choice!
9
Behind the major market trends, there is always an irresistible force.
Knowing this is enough, it is not a good thing to be too curious about all the reasons behind price movements. The general public should always remember the essentials of trading: just recognize where the trend is, ride your speculative boat with it, and benefit from it, don't argue with the market, and most importantly, don't compete with the market .
The nature of this game is such that the public should understand that the few who know the inside story will not tell the truth.
The simple fact is that the market always moves before the economic news, and the market doesn't react to the economic news.
The market is alive and it reflects the future.
Therefore, it would be foolish to try to predict the direction of the market based on current economic news and current events. Greed, like fear, distorts rationality. The market only talks about facts, reality, and rationality. The market will never be wrong, and it is the trader who is wrong.
10
Trading career, this is an industry of absolute personal heroism.
In speculation, anyone's opinions and suggestions are just references. Before we actually place an order, we must ask ourselves: Have I really decided? Only by placing orders according to our true inner thoughts can we make progress.
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