Why are there so few stable profitable Huiyou? There are many liquidated and repeated losses? Is it really because of technical analysis?

In the trading circle, most people are bound to lose money. If you want to make money from trading, it must be a very difficult business, let alone making a living from trading. Focusing on a few questions you raised, here are my views.

1. Regarding profitability

First of all, trading profits, especially stable profits, are based on risks. Since we are willing to earn money through this risk, we must minimize the risk in the process of taking on the risk. Some friends may ask, trading is high-risk, high-risk and high-yield. How can the risk be minimized?

In fact, reducing risk is not what we understand literally. What are the risk factors in trading? The fundamentals we know, technical stop loss, resistance to orders, trading against the trend, and too many unfounded attempts, etc., are all risks. What can we do? I think the first is the stop loss, the second is the "nonsense" part of the transaction process, and then the release of key fundamental information is avoided.

Stop loss is the primary task and basic skill to reduce risk in trading. No matter how effective the system is, it will inevitably experience the occurrence of small probability events. If the stop loss is not in place, as for the result, the profit will be severely withdrawn, which will affect the trading confidence; the most serious one will be liquidated and washed out of the market. As for the "nonsense" part, we can completely avoid these irrational behaviors. Since many trends or signals do not belong to the logic of our system. Well, let's just let it go. If you participate in such an unclear trend rashly, you are destined to be washed out in the shock. Once you are stopped too much because of participating in this kind of turbulent trend, you will be hit psychologically, resulting in retaliatory and impulsive trading, and the next outcome is... loss, loss, loss.

Avoiding important fundamental data, this question may be considered redundant by some friends. No matter how you look at it, it can be determined that fluctuations caused by fundamentals are sufficient to disrupt the laws of short-term trends, and even change the direction of short-term trends. After all, we are not financial experts and economists, and we cannot accurately predict and measure the release of fundamental data. Even if some friends have this ability, small probability events will happen. Just like the weekend flare-ups of crude oil some time ago.

2. About Liquidation and Repeated Loss

Liquidation, first of all, is the problem of stop loss. The second is the result of not having a system, or having a system but not fully applying it. These two questions, I believe, do not need too much explanation. Everyone will understand the meaning of it. Without a mature system, you will definitely not be able to see the trend clearly, let alone start. The number of "nonsense" has increased, and slowly losing money has become the norm, and liquidation will inevitably occur. Therefore, having a mature and effective system is an essential weapon for trading. Without weapons, you will not be able to enter the battlefield.

Liquidation is reflected in anti-order, heavy warehouse transactions, etc. These are some common senses that everyone is familiar with. As long as you remind yourself in real time during the transaction, you can control irrational operations in this area.

3. Questions about the system

The second article said that the system is an essential weapon for trading. As for whether the weapon is not easy to use or not, it depends on the important factor of "people". According to personal experience, when choosing a system, we should comprehensively consider all aspects of the system.

Of course, the most talked about trading system in the market is still technical analysis. After all, most traders are technology enthusiasts, which is also a difficulty. For them, having a good technical analysis system is equivalent to laying the groundwork for most of the transactions. Technical analysis, this is a never-ending path of exploration, but without over-optimization. Technical analysis focuses on logic, and when there is no exact logical signal sent, try not to operate as much as possible. Otherwise, if you break the rules and trade only based on subjective judgment, you are bound to lose money. Because of this, when many traders find that the system is not ideal, they will over-optimize to achieve their expected results. As everyone knows, doing so is undoubtedly embarking on a vicious circle. The more you optimize, the more the system will fail. Because the market is ever-changing, any analysis system will have bugs, and any system will not be so perfect.

In summary. I think that if there is a continuous loss. You might as well stop trading and let yourself calm down first. If you have a system, please take the problem of your loss completely, learn it again or do a serious review. You will definitely find the problem.

If you don't have a system, I suggest that you suspend trading first and learn a set seriously. Among the many sets of technical analysis systems I have come into contact with, the only one I admire is "Chart Analysis and Trading System". This system is not just a technical analysis system, it includes fund management, mentality management and other aspects. Regarding technical analysis, the author has unique insights into the definition of secondary reentry in Dow Theory. For the actionable part of the callback, it is clearer and more explicit. For the definition of the trend, the key position theory is clarified, and the direction can be more clearly identified when it is in the early and late stages of the trend.

It has no direct relationship with technology. You are skilled in this industry and can understand the market, but you can’t control yourself. The most important thing is that you can’t control the risk. It’s rare that you have to control your desire and risk.

First of all, your income expectations should not be too high. Don’t think about getting rich overnight. But I haven’t seen anyone who has been able to make huge profits and survive. Basically, they all went back and ended up with a liquidation. There is almost no risk in a return of less than 30% a year. Any higher requires a bit of luck.

Secondly, the capital must be large. A standard account of 50,000 US dollars is the minimum capital requirement for stable profits. I often see people say that 10,000 US dollars is a so-called large account. In fact, 10,000 US dollars is very easy to lose, and a little retracement will make the operation even more difficult.

Furthermore, you must be prepared to make money in the long-term, because no one can always be profitable, and there will always be a loss for a period of time. Because the market does not run according to your trading system. So don't set yourself a trap, you have to make a lot of money every day and every month, and the income should be calculated on an annual basis.

There is also the most important risk control. The only rule to do this well is light positions, and light positions are king. The number of operating lots corresponding to an account of 50,000 US dollars is 1 lot, and you can use this standard as a reference for your own fund operations. You may not be able to make a lot of money with a light warehouse, but the most important thing is that you can't lose a lot of money. This is also the key to stable profitability.

Because the method is wrong, the first step before making profits is to manage funds well, the second part is strict risk control, and the third part is income, EA shock + trend, free trial run, monthly rate of 5%-25%

The trading industry is different from other industries. In this industry, if you cannot squeeze into the top layer, you are destined to not make money in your transactions. Both the middle and upper middle layers are in a state of loss.

Although there are only long and short in trading, although each has a 50% probability, only 20% of the 20% can really make money stably. So if you don’t treat the trading market wholeheartedly, then he will treat your losses wholeheartedly .

The reasons for many people's losses can be divided into several levels.

1. First of all, it is the most basic level. There is no trading system suitable for him. Always listen to other people's suggestions or always trade in the market based on his own feeling. If your feeling is so accurate, then this market is a market for getting something for nothing.

2. Have a certain system but do not repeatedly improve the summary. There are many experienced traders who lose money. After every loss, I always sum up the rules, but I only stay in words, and I don’t make substantive improvements. I always think that I won’t make it next time I encounter it. In the end, I still fall on the previous mistakes. As the saying goes, "a good memory is not as good as a bad pen", and it is better to do it than to do it well.

3. Cognition. Relying on my own system full of flaws and my own so-called cognition, I have formed a model that I think is suitable for all market conditions, but in fact it still lacks summary analysis.

4. There is an essential difference between trading and analysis. The result of trading cannot be changed. Analysis will always leave a way out for itself. I hope some traders understand this.

Can trading really make money? This is what many veterans have been wondering! My answer is that it can make money. I am an example, but in the process of making money, it takes a lot of energy and time to persevere and follow a correct method. If you find it and stick to it, you win, if you fall by the wayside it's over. This is how the trading market will not leave you any room for tact.

The Buddha said, "Put down the butcher's knife and become a Buddha immediately." Becoming a Buddha is actually very simple. Why are there so many ghosts and ghosts in the world but no Buddha?

In foreign exchange trading, there are very few stable profits, and there are huge numbers of liquidated positions and repeated losses. You must first admit that this is a reality, a reality that does not need any reason. Forex trading does not generate any value, and those huge profits are all made by other traders. As long as someone makes money, someone must lose. The more the winner earns, the more the loser loses.

In fact, stable profitability is very simple, at least it seems to be. I don't see profitable people staying up late to smoke every day, and I don't see them frowning every day. They are very easy to make money. Many trading masters are not stingy to publish their trading secrets. It seems very simple, even simpler than "putting down the butcher's knife", but the world of trading is still full of monsters and demons, and no one has become a Buddha.

Your loss must have done something that caused the loss. But why the loss? ​Each of your answers is wrong. Just like becoming a Buddha, before you become a Buddha, all your practice is wrong, and the Buddha, no matter what he does is sacred and unquestionable. If you make stable profits, all your experiences are correct, and all operations are the reason for your ultimate profit.

​Before the Buddha Nirvana, believers asked who we will be our teacher in the future? The Buddha said "Take precepts as a teacher". Before you become a Buddha, you will never really understand why everything is. The Buddha just tells you what you cannot do. This is the "precept". You may not be able to become a Buddha if you strictly enforce the "precepts", but at least you will not fall into the evil realm. The same is true for trading. Many trading masters deeply feel that all beings in trading are "hard to adjust", so they have passed down many trading precepts, such as not taking heavy positions, strict stop loss, etc. These may not let you directly make a lot of money, but at least they can Protect your account from liquidation and huge losses. All traders can say a few trading commandments, but does anyone really take them seriously?

If you break the precepts in practice, you will fall into hell in the next life. If you break the precepts in trading, you will lose all your accounts right away. Isn’t this the right thing to do? ​

This leads to another question, why does a game with a 50% chance of winning always lose? Technical analysis is the basic skill of the game, and the next level is the detailed processing of the analysis. This detailed processing includes the sensitivity to the market and prices. Another word is "experience". The last is the mentality of the "player". Can every trader maintain a good mentality? Fix your own trading lots, and don't want to increase your position to earn back your previous losses just because you have lost money. Martingale is only suitable for players with absolute capital.

Analysis and operation are two different links. The analyst is good, but it does not mean that the trader is also good! The trader is very good, and you may not be able to tell why, because most of the time it depends on the sense of the market and the opportunity of the moment. It is difficult to unite knowledge and action. The financial investment market loses more and earns less. Contact the minority of people more, because the stories and experiences of the majority of people are similar. , Repeatedly taught. good luck 🍀

If there is no loss in the market, there is no profit. If you want to make a stable profit, you must have a plan, enter and exit decisively, don't lose mental control because of one or two losses, and don't underestimate the market because of one or two profits. forever in awe

Stable profit does not require a high winning rate, and a high winning rate does not necessarily mean a stable profit. I understand that the trading system should be like a wind system rather than being affected by the weakness of human nature. From my personal point of view, a templated trading system is more suitable, just like a robot with better accuracy , More importantly, it is not affected by the emotions of seven emotions and six desires!

The weakness of human nature, it is not difficult to make a stable profit, that is, the human heart is too difficult

In the traditional understanding, one needs to learn crafts/techniques to make a living; to solve problems is often eager to find the key and master the technical skills to solve problems, so one must also learn technology when dealing with transactions, that is, Western formulaic index analysis, Chart analysis or clouds including dashed line and shape, wave, K-line state (attention word) and even timing cycle: so-called technical analysis, which is almost a very common consensus. But I believe even more that Tao can be very Tao, Dao is ordinary, simple, and natural, and the Daoist Tai Chi thought of returning all dharmas to the ancestors. So insignificant and fragile. Ever since, dependency said another way: the market is the market, the trend is the market, and the profit and loss results of participating in the market have nothing to do with technology! This involves identifying and analyzing the problem from which level. Whether it is a big way or a small way (skill), it is nothing more than It is nothing more than exploring the regular characteristics of the market from different perspectives.

After understanding the Taoism, it is not difficult to agree with the Taoism that the participants gain less and lose more. As for the reason, I am afraid that it will be difficult to bear fruit after exhausting a lifetime, because "it is there"!

The answer to this question is only one sentence,

Technology is the foundation, but profit must not depend on technology!

This is my opinion 🙏

Yao Fat felt that this was one of the few good questions asked on Huihu.

As traders, we all have path dependence, which forms the reinforcement of a certain behavior pattern.

As we often hear "the more you do, the more mistakes you make, the more mistakes you do"​ is a direct manifestation of this psychological phenomenon.

​Stable profit is a state. Let’s ask further, what kind of state is stable profit?

Give up all your subjective prejudices, and only do relatively objective trading opportunities within your boundaries. Neither angry nor happy, neither humble nor arrogant.

Technology itself is just a tool, but more is in the trading concept and execution. ​

Some traders like to trade volatile varieties such as gold, crude oil, index, or data market. ​

Sometimes the greater the volatility, the easier it is to lose money.

​We must think clearly that our ultimate goal is to make money in this market, not to like market fluctuations,

Data is the driving force of market fluctuations, we should do it when it suits us, and we don’t need to do it if it doesn’t suit us.

Yao Fat suggested that novices first understand the basic framework of trading, insist on doing the right thing, and gradually strengthen the details.

The most important thing is to persist and be patient.

come on.

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Welcome to join the "Yao Fat Shuohui"​huihu exchange circle.

​​​Warm water boiled frog: ​https://www.huihu.com/user/details?type=2&ideaId=37750

The framework of foreign exchange trading: https://www.huihu.com/user/details?type=2&ideaId=37798

Form and data: ​https://www.huihu.com/user/details?type=2&ideaId=37864

Do the right thing: ​https://www.huihu.com/user/details?type=2&ideaId=37902

There are indeed many cyclical profits

No, there is no mature trading system and execution. A mature trading system includes technical strategies, fund management, and risk management.

Out of 10 liquidation, 9 weights and 1 resistance​.

In fact, I still know many friends who are stable and profitable, but they all understand the profound things in a simple way. They have something in common, they don’t like to visit social media, and they all pay special attention to health preservation (one is particularly afraid of his wife, hahaha)

Without a concept of holding positions, it is a big disadvantage to not understand the stop profit and stop loss. Quantitative EA can be recommended

The entire transaction process should include:

①Technical analysis system

② Trading System System

③Fund management system

④Quantitative Behavior System

⑤Diagnostic evaluation system

Therefore, the technical analysis system is a rooted and cognitive process, which belongs to the foundation of the entire process.

It's not necessarily poor technology, but more of doing it yourself.

There are many reasons for trading losses. The first is that novices who have just entered the industry do not understand analysis at all and do not have their own trading system. The trading system is always jumping back and forth between many trading systems, trying left and right, trying to find a 100% profitable system. You must know that every trading system has mistakes. The first two orders lost money, and when the third opportunity came, they were timid. There are many people who miss the opportunity. Another thing is to be greedy in trading. When the system exit price is reached, they will not leave. If they want to counterattack and become rich and handsome with one order, the result is often a loss. The third is the mentality. When you make money, you laugh and laugh. When you lose money, you are MMP. If you lose money, you can’t hold the profit list. Take profit and stop loss are not strictly enforced.