A little friend shared with me that his family members almost caused a revolution because they knew that he was engaged in trading. He said that not only his family, but also neighbors came to persuade him to work hard and not engage in those speculative projects. It is better to engage in transactions. The lottery tickets and so on, made this little friend dumbfounded. Carefully looking at the transaction performance of this little partner, we can find that the profit curve is rising at a fairly stable rate, which means that his entire transaction structure is complete and the risk control is in place, so why do the elders in the village think that the transaction is unreliable without looking at it? Woolen cloth?
Let’s take a 50-year-old uncle as an example. He was born around 1970. At that time, he was about to start rolling in society at the age of 16 or 7, that is, around 1986. The big financial crisis that occurred after 1986 included the following :
1987: U.S. stock market crash
1997: Asian financial turmoil
2007: subprime mortgages
2008: financial tsunami
2010: European sovereign debt crisis
If you are 20 this year, you may have heard or experienced the 2008 financial tsunami, but you were only about 6 years old at the time. How could elementary school students understand financial crises? After you became an adult, you started to come into contact with these investment transactions, holding the dream of making a lot of money. In every environment, these elders who have experienced more than one financial event will definitely stop you, for fear that you will be affected by the next financial storm.
In the final analysis, they are actually doing it for your own good. The concept of the elders is to work hard and get paid. It’s okay to live a life, but if you want to make a lot of money, you are destined to miss it. The society we live in today has abundant resources and channels to accomplish things that were unimaginable in the past. If you don’t learn to invest in such an environment, you will still be forced to learn by the environment in a few years.
This principle can be applied to more levels. For example, in the workplace, you always rely on other people in the team to solve problems. One day your ability must be worthy of your qualifications. You have to learn to improve your ability in order to survive. At this time Only then will I start to feel sorry for what I did in the early years.
In terms of trading habits, the most important thing is to cultivate your own habit of watching the market. If you always follow the signals of others and never analyze the market yourself, then one day you will need to learn to read the market yourself after an accidental overturn .
The more detailed question is about the stop loss. Appropriate stop loss is helpful to the sublimation of trading ability. If you are afraid of stop loss, it will be easier to be forced to stop loss. Let’s give a simple example. Today we saw a wave of upward trend corrections. The scale, price, and shape of this correction were quite beautiful, so you entered the market and placed a long order. Unexpectedly, this wave of corrections turned into In the short-term reversal trend, there will be several situations at this time:
1. Hurry up and re-analyze.
If the signal, risk control and other conditions are reasonable, you will backhand enter the market and sell short. After waiting for the new target to arrive and complete, analyze the different scales and patterns again to judge the new direction of the market. According to different market signals Give the corresponding operation.
2. Wait for the market to turn around after letting go
The second type of people still has flexibility, but they are afraid of market changes, so they dare not change their analysis point of view immediately. Instead, they choose to enter the market again when there is a clear bullish trend pattern after the deep correction of the market. Holding long orders, the short-term downward trend in the middle is the intermission time for them, and they can watch the show easily.
3. Carrying on, believing that the market will turn around,
if you just carry on in the trading environment and do not know how to adapt, then in the end you can only let the market educate you.
Unless your capital is large enough, the risk control mode is stable enough, and the order is originally intended to be held for half a year or even longer, then of course you can ignore short-term market changes, but I believe most people are not like this Therefore, it is still recommended to operate in the above two ways. When the market changes, we, as participants, must make adjustments accordingly, and we must never think that we can beat the market.
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