A friend of the sound factory recommended a discussion to me, "If you can buy, you are an apprentice, and if you can sell, you are a master? Big mistake!" The author questioned this classic saying that is widely circulated in the trading industry. He first said two points : ① Carrying orders is an important reason for the loss of retail investors, ② Entering the market at will is the main technical error made by retail investors. Based on these two points, he concluded that the reason why retail investors carry orders is that they will not set stop loss positions due to random entry. A conclusion is drawn, "it is the most critical to enter the market with a relative point advantage." I discussed this topic today, and put his question mark behind, because I agree with this sentence. The picture below is the original text of the author:
We know that if the trading system is divided according to the content, it can have many levels and parts. The entry and exit are only the content of the trading signal, which occupies a small proportion in the system transaction. That is to say, you cannot guarantee your final stable profit by ensuring the precise entry and exit positions, or in other words, the entry and exit positions are not at all It is impossible to accurately locate. No one can tell which position is a better position unless According to the author's idea, for example, if you go long at the support level and short at the pressure level, you can set the stop loss position more clearly, and there is room for both long and short positions. This is all a daydream. How do you know that the support level can be supported? How do you know that the pressure level can be suppressed? Are you losing money after the market breaks through the pressure support level for a short time? If you lose money, what should you do if you encounter a false breakthrough? If you don't lose, you are carrying orders! Let’s talk about his example of crude oil. Different people place the same short order. The reason why some people choose high positions and others choose low positions is because they have different trading concepts. Place an order, the concept is different, there is no right or wrong.
The author's trading philosophy is indeed different from mine, and it is meaningless to say who is right and who is wrong. It’s just a good saying that can be popular in the industry for a long time, and there must be its truth in it. If you don’t agree, it’s probably because your understanding is wrong. Everyone has said in many successful transactions that the only way to ensure your long-term stable profits in trading is a reasonable fund management system. No matter how good your According to the concept of fund management, we first set the stop loss position and stop loss space, limit the trading risk within a certain range, and then reverse the precise range of the entry position. For example, if we want to be long gold, make a standard lot, the absolute stop loss point is 30 points, and the key position for gold long-to-short under the current price pattern is 1900.0, as long as gold falls below 1900.0, we must stop loss; then our reasonable The long entry range is 1900.0 to 1903.0; if the current gold price is 1904.0, we will continue to wait and see; if you want to enter the market immediately, you must reduce the position by one-third, which is in line with reasonable fund management System entry position selection method.
The essence of trading is to control trading risks. Risk is the first priority. Stop loss is the biggest risk we can accept in each transaction. The direction of traders' efforts is how to minimize trading risks while ensuring returns. Trading technology is just a tool to assist us in reducing trading risks. Its direct purpose is to judge the direction of the market with less resistance to development. It's like people traveling by train. No matter which station you get on, as long as you go in the right direction, you can always reach the end.
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