The so-called order speculation is also called high-frequency trading. Many people think that high-frequency trading = EA when they hear this, but it is not completely true. As long as you can trade 50-200 transactions a day manually, or use coding If the program reaches more than 500 transactions, it can actually be called high-frequency trading. Moreover, the domestic high-frequency field is not friendly to computers, so the artificial high-frequency market has expanded a lot by the way.
If conditions permit, order speculation is the only way to make small funds come back in a short time. The conditions include one's own trading ability, short-term market volatility, and the extension of the trending market, among which timing is very important, which is the key reason why it is impossible for a millionaire to appear in the market out of thin air.
Difficulties in speculation
The handling fee must be low: high-frequency speculative orders must achieve performance within a given period of time, and they must be fast in and fast out. The profit of each order may be calculated, and the cost will be out after a few points are skipped. Yes, it will look good if hundreds of positive data accumulate together. If the handling fee is too high, it is easy to get out of the market before the balance is reached. Therefore, in the high-frequency trading environment, it is necessary to select an ECN zero spread account for operation.
Long exploration time: As mentioned in the previous article, the prerequisite for successful order speculation is that you must have certain trading experience, so that you can complete the three-stage action of judgment, thinking, and execution in a very short period of time. Naturally, it is impossible to adapt immediately from general traders to the field of order speculation. It will take at least a month to get a certain amount of market sense. If the basic skills are not stable, it may even take several years or more. Master the tricks of speculation.
The nature is opposite to ordinary transactions: under normal circumstances, trading requires investors to calm down and analyze with a normal heart. They must not be eager for success, but order speculation requires at least hundreds of transactions a day. Take your time, it is absolutely impossible to meet the requirements. In addition, the fluctuation nature of each variety also needs to be observed separately. Taking gold as an example, the fluctuation of gold from the daily line is about 2000~4000 small points, which seems to be very large, but when the time zone is changed to time-sharing If you look at the picture, you will find that the fluctuations of gold are mostly plate-to-plate spraying, and the inertia will cause a period of consolidation and then a period of explosive market to appear. Compared with the daily line or the four-hour line, the overall fluctuation law is still quite stable compared with time zones with better stability. different.
Prudent mentality: Ordinary trading may only do 20 transactions a month, assuming that the loss is stopped 8 times, that is to say, the winning rate is 60%, which is not bad. It is enough for speculators to trade 200 transactions a day, and the same ratio stops losses 80 times a day. This is an unbelievable record in anyone's eyes, not to mention an average of 20 trading days a month, that is, a month needs Undertaking 1600 stop losses, can you imagine?
Specificity: Ordinary traders have enough time to analyze each product to find out the product with the most suitable operability and trading space, but order speculators have no choice, they can only choose one product. Since different varieties have different volatility properties, it is almost impossible to develop a sense of speculation in more than one variety at the same time. Most order speculators need to spend a lot of time just getting familiar with one variety. Commodities in the group are likely to lose at both ends. Therefore, most people will choose gold with large fluctuations and good operating space as the protagonist of speculation.
In the market, almost all of the cases where small funds have turned into tens of thousands or even millions were made by speculation. I believe that anyone who has done transactions has been tempted, and if you want to enter the field of speculation, there will be leaders. I have to go and bring the following people to do it together, so there are many pulling groups on the Internet, and this has to mention the dark side. The purpose of these order groups is mostly to build momentum. As long as you keep reporting orders, no matter how big or small the profit figure is, a high enough winning rate can attract a large number of retail investors. It is difficult to define good or bad behavior of order/documentation. Of course, the group can still enter, but the order reported is just a suggestion. It is best to go through your own judgment. It is reasonable to do it, and it is unreasonable. Just ignore it.