"Everyone has a ruler in his heart, and this ruler changes with the growth of people's experience. Only by controlling the ruler in his heart can he do business without fear"
The variability of the market:
The author once said that the changeability of this market is due to the fact that different participants have different sensitivities to different "prices" (here refers to the amount of participants entering the market).
In the same way, you can think sideways: there will be corresponding participants at every price point in this market. That is to say, the same price point will correspond to long and short sides. There is no complete short side and long side! I believe everyone has a feeling: When you participate in the market, a single order is correct, and all indicators are correct, but it disappears in a blink of an eye (the article will propose a solution below). So it also confirms that there are long and short parties waiting to enter the market at every price point.
There is an essential difference between foreign exchange market trading and stock trading market
In terms of technical analysis, there is the slightest gap between the two. In fact, there is no big difference, but in the foreign exchange market, due to the continuity of time and the margin system, the volatility of the foreign exchange market is greater than that of the stock market, that is, under certain circumstances, the foreign exchange market is oversold and overbought. Come more violently. (The foreign exchange market can be more experienced: one thought of heaven, one thought of hell)
Therefore, when dealing with the foreign exchange market, if the participants come from the stock market, they must do a good job in closing the profit-making orders or reducing their positions.
The whole society: making money = arbitrage
I hope that all Hui friends can appreciate this passage carefully: arbitrage is something that people in the whole society are doing. Whether at work or in business or in business.
The first arbitrage person in China is Mr. "Yang Wanwan". There was a difference in the price of government bonds in each province that year. For example: Shanghai 100, Anhui 103. In this way, Mr. Yang Wanwan bought in Shanghai and sold in Anhui. I earned thousands of yuan by taking the train back and forth overnight. You must know that the salary at that time was only a few tens. (It's gone now) Of course, everyone can think of merchants reselling the price difference! In fact, trading is such a thing.
Every transaction is an arbitrage. Take advantage of poor information, poor technology, and price differences to do arbitrage! So can every arbitrage be successful? The answer is definitely no.
I am here to answer some questions in everyone's mind: "Why is the winning rate of the current very powerful fund companies less than 50%?" Not high)This problem can be returned to the ruler, because the capital of these companies is very large, as long as he does it right until the profit-loss ratio is positive, the money he can naturally earn due to the huge principal is enough to reach The measurement on the ruler in their hearts.
Here are some more thought-provoking questions. When the author answered the question of position management again, I once said: Discussing position management with a small amount of funds is just playing hooligans.
First of all, let me tell you clearly that you are just a leek in this market with a small capital, which is the same as stocks ( of course I am not asking you to directly increase your investment volume ), as I have mentioned in many articles before "Ability to control money" If you find that when you are doing foreign exchange transactions, the winning rate of billing starts to increase to more than 70%, which proves that your ability is improving! The money you control is increasing, and it will also bring about an important problem: when you continue to accumulate wealth with small positions, you will easily fall into confusion. Due to the increase in your winning rate, you will start to pursue higher returns, and even the behavior of leverage. Numb self-confidence leads to profit-taking and even damage to your capital.
So here I come back to what I said before, is the ruler in your heart updated and do you know it? Your ability improves, and the ruler in your heart is constantly updated. So sometimes it is not your trading level that is wrong, but you are doing a very stupid thing (this thing is like using a computer with a 3080 graphics card, and the CPU is only an I 3 level, anyone who knows a little bit about computers will know , this U can’t carry the 3080 graphics card at all) It’s the accumulation of wealth in a small position and finally achieving financial freedom. Is it really like an ant like you moving? (Think of the master's yield win ratio) and at every price mentioned in this article, there will be short and long orders waiting to enter. So in the mode of ants moving, people have emotions and you can't do it like a machine. Of course, it is impossible for EA to do it, because EA lacks the flexibility of people.
Therefore, the author recommends that you learn the technology first when trading, and discuss whether your trading system has a good winning rate when rolling wealth with small positions, and then quickly roll the principal in order to earn more funds.
Of course, when rolling the principal, after reaching a certain position, you have to start a new small position to roll wealth and continue to discuss the trading system (the second small position is larger than the first time because the principal is more)
It's a cycle. I have been playing hooligans and talking about position management. The income cannot reach the ruler in my heart. The market that I am sure of is only that band. When I should make money, I don’t make money or make less money. When the market is unclear, there will be losses. Even question your own trading system.
I also said in the last article: Believe in your own trading system even if it is incomplete.
It's not that everyone doesn't know how to trade, but that everyone has fallen into an endless loop and has never jumped out. Of course, the most important thing to jump out is to "break through the price limit"
(Infinite cycle: opening an order (playing rogue position management)-profit (not reaching the level of the ruler in mind)-continuous repetition (little change in principal)-loss (reflecting and questioning the trading system)-starting to return to opening an order On (the principal has not changed much))
In fact, the article also mentioned a conceptual basis: at each price point, there will be both long and short sides, since there are both, why bother?
The best way to deal with the ever-changing market is to do what you are most familiar with.
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