What conditions are needed to achieve stable profitability?

You first need to define what a stable profit is, but because novices do not have the ability to make a stable profit, their vision of a stable profit is just like farmers imagining the emperor digging the ground with a golden hoe, and their vision is limited.

When I was a novice, my understanding of stable profits was to find a formula for making money in the market, and to keep making money every day or every week or within a certain period. At that time, I had a good idea. When I found it and could make a stable profit, I would expand my principal to do business, compound interest, and I would soon be able to make a lot of money.

Many people judge others to be stable and profitable, just to see whether his past record can keep making money within a certain period of time. But the past record is history, how can we deduce that this kind of stable profit can be maintained in the future? Looking at the past record to analyze is like we do technical analysis on the disk. The disk is history, something that has already happened. How can we predict the future by analyzing history? You cannot deduce the future, so your stable profit can only represent the past, not the future.

So what is the real stable profit?

Stable profit is a stage of learning to trade.

In the development of things, there will be several stages of germination, development, climax, decline, and death. Learning to trade, the normal progress, there will also be several stages, sudden loss, slow loss, no loss, no profit, small profit, steady profit, sudden profit, this is the experience of small capital learning. After passing the stage of earning a lot of money with small funds, it will enter the learning stage of trading with large funds and start a new cycle.

Reaching a new stage with four pillars

One is to have the corresponding market and transaction understanding at this stage

The second is to implement the method of understanding

The third is the corresponding record

The fourth is faith.

The first pillar is the end of the previous phase and the beginning of the new one. This is the root of the trading method. If there is no corresponding understanding, only the methods and achievements of the corresponding stage are usually brought up by the master. Although he has achievements, he will still be trembling with transactions. Their beliefs are not enough, and when the market changes, they don't know how to change.

The second pillar is the implementation of knowledge. If there is no method, only understanding, it is easy to become mere talk. Others sound and feel reasonable, and will be overwhelmed by his deep understanding. But there is no method to implement, behavior and understanding will be contradictory. For example, when I talk about the concept of winning by the ratio of profit and loss, the idea of ​​implementation is to cut losses and let profits run. Anyone can say this sentence, but when looking at the transaction records, many people's orders either carry the big losses, or they can't run far. Floating profits .

I use the trading idea of ​​stop loss in a small period and stop profit in a large period to further implement it concretely. It is not enough to implement this idea, and it needs to be further and more specific, such as small cycle, stop loss, etc., and how to express it with tools. It is very clear from the understanding to the implementation. The ultimate goal of implementation is not necessarily completely clear, and the completely clear path is mechanized transactions. The way of subjective trading will be to have a clear skeleton structure that fits the constant outside world, and a fuzzy outer layer operation to deal with the changeable outside world.

Knowledge and methods are a system. The later the stage of learning and trading, the more logic is added, the richer this system is, and the more adaptable it is to external changes.

The third column is record. Cognition and methods are both products of subjective consciousness and belong to theory. Theory guides practice, practice verifies and improves theory. The essence of trading profits is that our subjective consciousness matches the objective fluctuations, and the rewards given by objective fluctuations. The record is to verify whether the trading theory conforms to the objective fluctuations. If a trading theory conforms to the objective laws, it must sometimes conform to the objective fluctuations.

The fourth pillar is faith, confidence. Undefeated has the belief of being undefeated, and stable profits have the belief of stable profits. You will feel that no matter how the market goes, you can achieve unbeaten or stable profit and retracement.

Stable profitability is a kind of ability, just like learning how to ride a bicycle and how to drive a car. I will accelerate, decelerate, stop and change direction. No matter how the road conditions change, my own soldiers will come to cover the water and soil.

In the stable profit stage, you know why you make money, and you also know the boundaries of your abilities. Only in this way can we not be afraid of the changes in the outside world, so that the soldiers will cover the water and the soil.

These four pillars are the conditions needed to achieve stable profitability. The specific conditions required for each stage are not mentioned here, because it is too long and I am too lazy to write.

Many people, including me who didn't understand trading thoroughly, have many misunderstandings about stable profits.

The first misunderstanding is that stable profits are profitable every week and every month;

The second misunderstanding, the understanding of other people's stable profits, is that this person has mastered the profit formula of the market, and after setting the formula, the money will come.

The third misunderstanding is to judge whether others can make stable profits, that is to see whether their past records make money every month; many people will also have doubts. Records are history, which only shows that they have made stable profits in the past. But the future is uncertain. From the past record, how can it be deduced that he will be able to make stable profits in the future?

The fourth misunderstanding, this person can make a stable profit, why doesn't he use debt to trade? Wouldn't he be financially free immediately after borrowing?

The first misunderstanding, is it necessary to be profitable for a certain period of time? Weekly and monthly profits are appearances. Advance-adjustment-advance is the normal state of stable profitability. It doesn't matter whether a certain period is profitable or not. A person with stable profits can make a capital curve with stable profits. Most of the time the record can also naturally show weekly or monthly profits.

The second misunderstanding is that the profit formula understood by novices, in the eyes of veterans, is a method of implementing understanding. Like a weapon or a knife, only the owner of the knife knows where to use the knife to achieve the effect. Others do not have the ability to use the knife, so they can't use this profit formula well.

The third misunderstanding, record is history, just like technical analysis, technical analysis can only analyze the price that has occurred, and explain the state of the past price, it cannot explain the state of the future (but it can be guessed through technical analysis future). What can lead us to see the future is the hidden law/logic in history. Only law/logic can lead us to see the future .

The historical record of stable profits may contain the logic of stable profits, or it may be just a moment of luck. I don't know why I make money, so I can't know whether I can make money in the future. If you know why you make money, you can also deduce your future. But others cannot comprehend your logic unless his level of trading cognition is higher than yours. Others can only analyze you through various information like technical analysis. He invests money in you, and he is betting like a transaction.

For me, when there is a stable profit record for a period of time, it doesn't take long for me to know whether I have the ability to make stable profits. Because this record is a testament to the way I know it, it doesn't take long.

The fourth misunderstanding is that a stable and profitable state is established within the boundaries of one's own capabilities. Outside the boundaries of capabilities and out of control, stable profitability will disappear.

Just like you learned to ride a bicycle, on a normal road, stable riding is within your ability, but someone tells you to ride a bicycle on the edge of a cliff, you can’t bear the fear of the cliff, this is beyond your ability and your ability to ride steadily is gone. So if you want to ride stably, then you only do what is within your ability and ride on normal roads.

Borrowing heavily, exceeding one's own risk tolerance. I can make stable profits. This is the result of controlling risks, not the result of strong predictive ability. Borrowing heavily has magnified the risk, but I cannot bear the risk of failure. Risks get out of control and stable profitability dies with them. Without controlling the risk side first, you are not qualified to accept the profit side.

First, choose a safe platform and make any investment. The safety of the principal should always be the first priority. This is based on the consideration of the safety of the principal;

Second, choose a trading variety with stable attributes, it is better to be less and not more, this is based on the consideration of the volatility and stability of the trading variety;

Third, choose the analysis indicators and methods that suit you. It is best to be appropriate. It is not that the more analysis methods you understand, the better. This is based on the consideration of analysis and judgment;

Fourth, clarify your own risk preference, so as to determine the operation method, and separate the short, medium and long-term, which is based on operational considerations;

Fifth, have a peaceful mind, do not seek to win every order, do not be arrogant about winning and not discouraged when losing, do not be affected by emotions in transactions, the profit and loss range meets expectations, decisively exit the game, and do not procrastinate. This is based on the consideration of mental control;

Sixth, have plenty of time to watch the market and analyze the market, and do not trade in a limited short period of time, unless there is a copy order, and a special person is responsible for keeping an eye on the market, which is based on the consideration of the trading time;

Seventh, set a goal every month, which must be realistic. The trading market is not a place where you can pick up money with your eyes closed. The goal must be realistic. This is based on the consideration of goal incentives;

Eighth, I wish you all a smooth transaction, and you can consult in time if you have any transaction questions!

Generally, professional people don't talk about stable profits, but long-term stable profits.

Why do you say that? Because stable profits are not rigorous and there is no time period, what is stable profits? every day? weekly? per month? Per year? Are all profitable? Obviously this is an unrealistic thing. First of all, among the capital curves I have seen, the capital curve has never seen a profit every day, every week and every month in ten years. In the year-cycle cycle, there was a person who was very promising, but unfortunately, he stopped in the eighth year. In the eighth year, the market in this year was extremely unsuitable for his trading system. He had no choice but to lose money. But it was only a small loss, less than 20% of the capital, and the profit in the first seven years had increased by 13 times. He may become a celebrity in the future, and it is possible that when he becomes famous, everyone will know him.

So here I first explain the concept of long-term stability. Even if a top expert has a top trading philosophy and trading system, he can't guarantee that he will make money every year, and Buffett is the same. However, if you have a positive expected return trading system, you can guarantee long-term stable profits. The ten-year capital curve must be upward. Although there are a few years or a period of unfavorable period in the middle, the overall trend must be upward after the retracement .

What are the conditions for long-term stable profitability? First, the positive expectation earnings trading system. A trading system has three elements, entry rules, exit rules, and fund management. This is a fixed mode of a trading system, and both are indispensable. So what is a positive expected return trading system? This system is equipped with the correct trading logic. I don’t know about others. My own trading logic is the core idea of ​​cutting losses and letting profits run. The specific method is medium and long-term trading of trend tracking.

Second, stand the test. Having a positive expectation trading system is only the first step in the long march. There are too many tests in it. For example, there is a stop loss link in your system, and then a certain market hits your stop loss and immediately returns to the original position. If you move in the same direction, you will be very annoyed, and it is very likely that you will question the rule of stop loss. If this happens a few times, it is very likely that you will think that stop loss is nonsense, and then give up stop loss. In the end, it may be because The carrying order was taken away by a wave of a certain huge market. There are many such doubts and temptations. Only by raising awareness and seeing through these essences can it be possible to keep your own set of positive expected return trading system.

Third, endure loneliness and know how to delay enjoyment. In the process of our trading, when we are slow to make profits or are experiencing unfavorable periods of retracement, we can always hear that people around us are making big profits and rising again. At this time, we are always curious about what method he used to rise So fast, so much profit. After inquiring, we will feel that the things we use are too rubbish, the feedback is slow, the profit is low, and there is no explosion, so we give up our system. However, in fact, the root cause of these exploding accounts is that they took a lot of risks in exchange for heavy positions, increased positions, desperate bets and so on. They only dazzled this time with the halo of luck, and the profits obtained in this way are only temporarily stored with him. As long as he continues to trade with such high risks, he will return it to the market sooner or later. There is no sudden wealth in any field, and trading is the same, but it may make money faster than other industries with leverage, but it also takes time to accumulate. Relying on accumulation and compound interest, small funds can be turned into large accounts. is the correct way to manage.

In fact, there are still many, many conditions. Any deficiency will be hit by the market one day and hurt. We need to keep improving. The important points are almost the above three points. Others require traders to improve their cognition to dig out more and deeper conditions. .

Are you satisfied with this answer?

hello subject

To achieve stable profits, the following conditions must be met:

(1) Perfect trading system, every time you buy or sell, you need entry point, stop loss point, and profit stop point!

For example, Wave Theory, Gann Theory, Harmonic Trading, Institutional Naked K Order Principles, etc., a complete trading system requires money to learn professional training.

(2) Risk management, position management, fund management, mentality management.

For example, the single risk of a $10,000 account is controlled at 1%-2%, then our take-profit control is 1%-2%, more than 2%, that is, our profit-loss ratio must be positive 1:1, 1:2 or more!

Mentality management depends on the execution of our trading system!

(3) Reduce positions and push protection, in the case of guaranteed profit, it will not become a loss, and the risk will be reduced!

A successful trader needs to have his own trading system in order to achieve stable profits? And analytical ability, always pay attention to the dynamics of the market, and transaction execution, this is the most basic principle. If you can do the above well, you can make stable profits. If you can’t do well, it is recommended to exit the market.

Know how to stop profit and stop loss, and control the position well. Don't order emotionally, avoid Martin

In fact, most of the time we open the bills ourselves, it is not as good as quantitative EA to open bills, EA is more stable than manual billing, and there is no emotion.

I use EA myself now, and the overall effect is not bad. ​

Have you ever had such an experience when you entered the foreign exchange market with real money? When the price is in line with your prediction, you become extremely excited, watching the account float from a few dollars to hundreds of dollars, you want to close the position, but also want to continue to wait for more profits. Finally, the mouse clicked to close the position. A few hours later, you start to regret that no, because the price continues to move in the direction you expected and breaks through your original take profit level. In another situation, when the price does not move according to your expectations, are you struggling, moving stop loss, praying in your heart, or even sweating on your forehead? When the price is about to hit the stop loss position, I often take luck in my heart, thinking that it will rebound or pull back soon. It turns out that this is the psychology of gamblers. How to achieve a stable and profitable state, the mentality and the execution of the trading plan are very important.

1. Simulated trading, novices must do simulated trading before doing real trading, and use enough time to build confidence in their trading system, so as to prevent the failure of real trading in the future and bring abnormal depression. Therefore, before taking your hard-earned money to risk trading, you need to spend some time learning the trading platform, trading system, experience, and self-confidence, and you must first make money on the simulated disk.

2. Make a trading plan. In trading practice, there may be many scattered plans flashing in your mind, but no complete and definite plan has been formed. Only what is put into practice can be called a plan. So, you must act. The key to everything is that you have a plan and put it into action. At least when you can't continue to execute the plan, you know exactly what you didn't do, so you can easily find the problem and solve the problem later.

3. Before trading, first improve yourself. The improvement here is a relatively broad concept, such as having a good exercise program, going for a walk after meals, a good eating habit, and spending time with your family, etc. This kind of self-improvement can Let's raise the level of trading. In trading, you know what is important, where your expectations and priorities are, instead of staring at the K-line chart all the time. Only then can you have a correct attitude towards life and trading.

4. Learn to accept stop loss failure. In society, no one wants to be a loser, but for trading, you must understand that most of the time, you will be a loser. Learn to accept failure, embrace failure. This is an important skill in your trading career.

5. Treat profits calmly. Generally, if you make money, you can't bear the turmoil in your heart, thinking that you will be able to roam the foreign exchange market and gallop on the battlefield from now on. Most traders have this mentality, making money can be so simple. If you do the right thing, the market will naturally be on your side, and your profits will follow the trend. On the contrary, you will find out how panicked you are.

6. Stop overtrading, keep trying until you succeed, if you want to learn to use a tool, you have to keep practicing, keep repeating, until your body and your mind memorize the skill. But trading is a bit different because psychology plays a big role in trading. When things go wrong, our efforts to correct mistakes can lead to overtrading. Keep trying, but keep failing. You have to be aware of this behavior, especially if you are a scalper or day trader. When day trading, you might place 3-4 stop loss orders. That way, when things go wrong, you can cut your losses right away and get out of the trade. Many people make a common mistake. When we have a winning streak, we are in a good mood and full of energy; when we continue to lose money, we become extremely depressed and dejected. Perhaps, at this time, you need to review and reflect on yourself.

It is necessary to define a stable profit. Including "profit-loss ratio" and "expected rate of return".

If you think that every time you place an order, you must make a profit, or a 200% annual rate of return is stable. That is impossible. It's all a scam.

To make a stable profit, one should try to ensure that the loss is less than the profit. This requires the cooperation of mentality, technology, and luck.

Three elements of stable and profitable foreign exchange trading:

1. Stable system

2. Stable execution

3. Stable mentality

The three elements of profit complement each other and affect each other.

A good system guides good execution, good execution brings good results, good results bring good mood, and good mood will in turn promote execution.

But having said that, any mature trading system, including the original system, can only solve the first basic element.

And stable execution and stable mentality cannot be solved by any system itself.

A system is only a method of trading, not the result of trading.

To form a profitable state of sustainable operation, not only the system is needed, but also one's own trading quality.

Without any one piece, the wheel of profitability cannot move forward.

A positive trading system and a strict fund management are required. I think it should be enough.

At least one of them is necessary - once a big loss has been liquidated.

You still have to work hard to achieve a stable profit. You can look at those traders and traders who have a stable profit. They wake up 1-2 hours earlier than the average person every morning to watch the news.

And often maintain a good mentality for stable profits, do not have a gambling mentality, and do not have too much expectation for each order that faces a loss. If the situation is wrong, the position will often be closed immediately (reaching a certain retracement ratio). Because they all know that as long as there are funds, there are opportunities.

A trading system that suits you, a good mentality management, and a reasonable fund management, if you are satisfied, you can make stable profits.

A tested trading system, a set of fund management solutions, execution. To put it simply, trading is the trade-off between winning rate and odds. The reason why we say trade-off is because they are negatively related.

The position should be light, the cycle should be large, and the position should be held for a long time! add up

The market is stable and maintains a good trading mentality

Mentality first, trading system second, capital amount third

Find a trading system that can make stable profits, plus reasonable risk control measures

Very appreciative of Soros' words! Stable profits may be boring transactions. For an excellent trader, implementing the rules of his own trading system must be simple and direct, without pressure, without entanglement or hesitation.

Because there is no pressure, it is possible to be bored!

First, a stable trading system

Second, strict execution