What are some things you didn't know until after you made a deal?

It has been three years since I started to speculate in foreign exchange. During the three years, I spent a lot of time, energy and money. I gained some, but also lost a lot. After spending the first one or two years of fresh and exciting trading career, it is not a problem to find out the basic ins and outs of the market, and it is only time to hone the advancement and improvement. Calculated carefully, in the past three years, I have also accumulated some trading experience, and my nose has been stumbled, so that future generations will avoid more pitfalls and detours. If there are more people walking, it will become a road. The longer the road is, the wider it will be, and the farther it will go. In fact, there are no tricks in foreign exchange. As the saying goes, the way to success in foreign exchange is nothing more than the three tricks of light storage, taking advantage of the trend, and stop loss. I understand the truth, but it is all based on the exchange of flesh and blood experience:

[Lesson 1] Invest with spare funds. Never speculate in foreign exchange with the necessary expenses of life, never speculate in foreign exchange with the necessary expenses of life, and never speculate in foreign exchange with the necessary expenses of life. None of those who have done this, including myself, regret it deeply. This lesson was exchanged by many novices with blood lessons. If you want to experience the painful feeling of having your head flooded, come here if you are not afraid of death.

[Lesson 2] Simulation trading is the mother of success. If you are a novice just getting started, then my suggestion is to open a demo account to practice your hands first, and then open a real account after raising your level to a certain level. The only difference between a demo account and a real account is that the money is a virtual number, everything else is the same. Of course, any broker will provide a demo account. The key point is to learn to analyze market trends and follow the trend to survive and make money. ATFX is the broker I chose at the beginning. Like FXCM and GAIN Capital, it can provide a demo account of 10,000 after successful registration (of course there is a higher amount), but I hope you are more realistic. You think I want to advertise for CPT, no, the quality of the CPT platform is not the key point, the market analysis reports and regular live broadcast rooms provided by the key platforms (there is no such thing as calling orders, they only provide economic data and financial news analysis , as well as the general direction of the market and the risk of warning, if you are looking for a caller, there is indeed one who can call you accurately, but why don’t they make money by doing transactions and come to give you a call?), understand thoroughly and guide yourself This is the point of trading ideas. I still remember that when I first started playing the demo account, I lost $10,000 in less than a week, and it was not once or twice. After recovering from the incident, operate the demo account with an indifferent and casual attitude. How much you lose on the simulated account will be the tuition you have to pay on the real account in the future, and only a lot more.

[Lesson 3] Stop loss quickly. There are three tricks in foreign exchange, light storage, follow the trend, and stop loss quickly. Everyone knows about light positions and homeopathic conditions, but it is difficult to stop losses, and it is even more difficult to stop losses quickly. Think about it, who would be happy if you cut yourself, the more painful you will be the faster. Easier said than done, if you want to earn more and lose less, you have to set a stop loss line. After this limit, you must resolutely stop loss. After all, you can only gain if you give up. Formal platforms will provide automatic stop loss setting, make full use of stop loss, and improve capital utilization, which is the basic way of survival.

[Lesson 4] Do as much as you can and do as much as you can. If it exceeds your investment capacity, it doesn't matter if you don't make such an order. But in order to chase the market, you can't borrow money and borrow money to make orders, but you can't get back your money. As someone who has experienced it, I have to remind you that you can only do as many transactions as you have in your account. People must see themselves clearly and do not do things that exceed their capabilities.

[Lesson 5] Overcome yourself. Sounds weird, but true. Because the biggest enemy of trading is yourself, your greed, fear, anxiety, and pride will destroy you. The essence of investment is the consideration of human nature. Fear and greed are compulsory courses for all financial investments. Those who can successfully survive and make profits in the foreign exchange market are all masters of emotional control. Therefore, you have to know yourself, control yourself, and never lose yourself. There is a saying that character determines destiny, which is the truth.

I have been speculating in foreign exchange for more than three years, and I haven't earned much, so experience is indispensable. Although it seems a bit long-winded, it’s all my history of blood and tears. Although we don’t have much technical knowledge, we understand and use these lessons well. Not to mention making you rich and making a lot of money, it’s not a problem to gain a stable foothold and make a little money . By the way, I spent a lot of money to buy the experience and lessons of blood and tears. Don't just curl your lips and leave after reading it. Only by remembering and using it flexibly can you go further. The above are the summary notes I wrote in the third year of trading, I hope it can bring some references to you in trading! At the same time, if you are just an ordinary trader, you can find me if you want to do trading and understand how to find a platform for low-spread and low-cost trading! At least I can reduce your transaction cost by dozens of dollars! Then you don't have to wait for the spread to run out to make money!

Only after I entered the market did I realize that people can be so stupid. Why do I say stupid, I summed up the following points:

The first stupid: stupid in ignorance. Come in without knowing the market first, dreaming of getting rich all day long, how many dishes, so drunk? MT4 just wants to make money without knowing what it is. And those who choose to be a black platform, wake up, the annual rate is 100%, one dares to say and the other dares to believe, there is such a good thing, why do you have a bunch of poor people around you?

The second stupid: stupid conceited. It's nothing more than a long-short game, either long or short, and it's over. How about your wallet?

The third stupidity: stupidity is opportunistic. Not all things have shortcuts, and not every shortcut ends at the pinnacle of success, and there may be a cliff ahead. I'm talking about those who like to follow orders and call orders, um, that's you. How many people have blown their positions with orders, and how many people have been cheated by Mr. Shan. Why do you still want to do it with them? How many G brainwashing packages have been sent to you. There are not many teachers in this market yet, and it is very chaotic, so why don't you disturb the muddy water?

Fourth Stupidity: Stupidity lies in refusing to learn. You can travel thousands of miles without taking a single step, and you want to fly before you learn how to crawl. How can you be so capable? You will always be able to learn technology, and you will be strong if you practice mentally, but some people just like to be led by the nose by the market, and they even want to control the market. Well, let me serve you another plate of peanuts and listen to your bragging .

Don’t spray me, I’m still alive and well; don’t laugh at me, I admit that I’m a leek, but I’m also a leek on a cliff, tenacious, not like the one in the manor, where anyone harvest.

People who really make money don’t look at technical analysis at all; there are also many great masters who say that technical analysis accounts for less than 20% of their trading systems; there are even more statistical statistics that technical analysis accounts for 99% of traders who lose money; Analysis is the enslavement of the market to traders.
Simply put, technical analysis cannot help you make money. This should be a conclusion that is both realistic and verifiable.
Technical analysis is just the combing and interpretation of current and past trends. Everyone is different, and what you interpret depends on your analysis angle and level.
None of this matters. The important thing is that your views based on current and past trends have no necessary logical causal relationship with future trends.
Just as the golden cross cannot deduce the future rise, overbought cannot deduce the future decline. There is no logical causal relationship between the two. The frequent performance of technical analysis is that it does not work when it is timely. As the last straw for traders, technical analysis makes traders want to stop.
Because buying and selling based on signals issued by indicators is to buy and sell based on false logic, and it is only natural to lose money in the end. It's like you memorized the wrong ninety-nine multiplication table, but you hope to get a high score in the exam.

After doing the transaction, I had a clear understanding of myself. Before this, I never knew that I was an ignorant, cranky, arrogant, conceited and hard-talking person. The market is really a testing ground for people's hearts, and all the shortcomings of your character are infinitely magnified here. After several years of growth, I finally started to have an epiphany, and I will share some trading experience summed up by Huiyou. I wish you all the best of luck and smooth trading.

1. Benefits are not the first, the most important thing is how to live better.

Risk is everywhere. Before doing anything, consider the risks first. Going all-in and throwing everything at one's feet may seem domineering, but it is not advisable.

In life, it is true wisdom to do anything that is at risk.

2. Don't increase the entity if it is not necessary. Simplicity is the highest level.

I used to think that writing profound and complex articles and uttering unfathomable theories is a master, but after doing transactions, I found that the truly effective and lasting strategy is actually very simple. Because it is simple but not simple, because it is simple but not fragile.

So I understand that those who can get rid of the cumbersome, return to the basics, and put it in one sentence are the real masters.

3. Human greed and fear are very powerful , especially driven by interests, rationality is so difficult. It feels so real when money fluctuates more than you can imagine.

4. The market that cannot be caught is not an opportunity at all, but a trap. Trading needs to abandon most of the seemingly good market conditions and only grasp the small part that belongs to you. There are three thousand weak waters, and it is not easy to take only one scoop. It requires a lot of mind and pattern. The same is true of life.

5. In trading, fund management and rules are far more important than technology. Therefore understand the essential role of customs, laws, and morals. Extreme freedom will lead to chaos, and only by restricting freedom can we improve efficiency. Self-discipline leads to greater freedom.

6. Success is hard-won. The vast majority of successful traders are not gifted, and success comes from the unforgettable experience after numerous setbacks. Luck is only temporary. If a trader wants to succeed, hard work, concentration, diligence, and perseverance are all indispensable.

7. It is useless to know too many principles, and it is meaningless to implement them without a deep understanding.

All wisdom comes from personal experience, and cognition without action is false cognition.

8. There is a saying: People grow up three times.

The first time is when you find yourself not the center of the world.

The second time is when you realize that no matter how hard you try, there are still some things you can't do.

The third time is when you know that you may be powerless about some things, but you will still try your best to fight for it.

The same goes for transactions. The growth process also has three stages:

The first time is when you find yourself unable to determine the market trend at all.

The second time is when you find that no matter how high your level is, you can't control the market, and you can only passively wait for the market to give you the time to stop losses and make profits.

The third time is when you know that the transaction is really cruel, but you will still face the test of the market firmly, tread on thin ice, and stick to it to the end.

Before trading, I thought that hard work could solve all problems. As long as I learned all trading techniques and read all trading theories, I would definitely be able to do a good job in trading.

I later learned that this was wrong. Hard-working overtime dogs and licking dogs abound. In addition to creating introversion, they make themselves worse. Among them, there are very few successful class-jumpers and true love harvesters.

After making a deal, I came to the end of the road of trying to improve technology, and began to think about higher-dimensional content.

Before making a deal, I was more competitive and had a strong desire to show off, so I must be the most outstanding one in the crowd.

After making a deal, I can’t post a few Moments a year. Trading is not a competition, and I don’t care about the title of champion or number one in my heart.

Before making a transaction, I would worship a teacher, a certain writer, or a person with social influence. It is still easy to follow others in my own views, and I am not very confident.

After doing business, people have become a lot more stubborn, at least in the field of trading, in my heart, those so-called masters, teachers, masters, and champions are not as good as me, and it is possible for literati to look down on each other and beauties to envy each other.

Before making a transaction, if you want something without waiting, it is best to have it right away.

After making the transaction, I became more tolerant, and my delayed satisfaction of needs was stronger. I can wait for the thing I want even 20 years at night.

Before making a transaction, I always want to be perfect, and I think about others first and then myself in everything.

After making a transaction, what is pursued is a balance, such as profit and risk, work and hobbies. To make a transaction, you must first be comfortable with yourself, and you can do whatever you want.

I don't know how many things and principles I have learned since I started trading. I only know that I have changed a lot. Some things that seem to have nothing to do with the transaction actually have far-reaching consequences.

Don't make any plans like how much I earn week by week and year by week. no need. Get as much as the market gives you. I used to make a plan for myself and found that it was a stupid thing. It depends on the sky. If there is no market, you insist on getting it. Isn’t that nonsense? Strictly implement the trading rules, and you often earn more money than you can imagine.

From simulation to real offer, it is an inevitable journey. No matter from inside to outside, point difference, slippage, rebate, withdrawal, etc. The most important thing is the knowledge of the account manager. Leaving aside other people, as a newcomer for less than 2 years, after some training and private homework, my knowledge is almost comparable to that of veterans in the industry (over 5 years) ) comparisons, but I think there is still room for sustainable development. Why is the knowledge of account managers so important? I believe that the account managers you meet in the world are not for increasing positions or doing other things that hurt traders.

I think the biggest change after doing a transaction is thinking, or the way of thinking. Finance is a shrunken version of ginseng essence. For me, to describe it in one sentence, you should be thick-skinned, bold and careful, and admit your mistakes to minimize losses.
That is to know the perseverance to move forward, but also to know that some things can be avoided, and to know what to do and what not to do, then what will eventually bring about is a change in mentality and correct persistence.
Finance is a battlefield, a shopping mall, but also life and art. Understand the art behind finance and taste your own way of survival behind finance. Trading is not the purpose, but the sublimation of the soul behind trading. Trading is not the source of satisfying self-thinking fantasies, but acceptance The deep pool where the soul is tempered and precipitated.

Our Brains Are Biased

See a girl with tattoos and your brain might think she's a bad girl

For example, the trend will not be different because of your preferences and opinions

Mentality is a false proposition

When you saw the opportunity, you missed it. When you look back and look at it, you will definitely think about such a good opportunity. Why did I miss such a good opportunity? How did I hesitate so much? I must have been afraid at the time and had a bad mentality.

But the fact is that people make the best handling of everything according to their own cognition at the moment. At that time, your cognition thinks that it is better not to make orders.

Throw dice 1-5, you win 6, you lose, you will definitely participate without hesitation

Because of such a simple cognition, you can judge it immediately

A person can't make money beyond his knowledge

So come on, don't blame your laziness on your mentality. If you want to make a good deal, you must do more and learn more.

Before the transaction, I set a small goal to buy a Panamera and drive it. Later, I lowered the goal to a stable profit. The book I am reading now is "How to Spend Five Dollars for Three Days"

There are two types of transactions: documentary and independent transactions.

As a documentary analyst: keep your mouth open and simple, keep your mouth shut and combine knowledge and action, but making money depends on luck, and losing money depends on strength.

When the teacher who is good at copying orders: How is it so easy to make money in finance, counting money until you are soft, happy.

When you trade independently without technology: It was so easy to make money when you made a list with the teacher, but it was so difficult when you did it yourself, it should be because you don’t know the technology.

When learning technology to trade independently: It turns out that technology is only a component of earning power, and you need to keep up with your own mentality and execution ability.

Gain the perseverance to go forward, and also understand that some things can be avoided, and some things cannot be avoided, so the attitude and correct persistence behind the final result. Regardless of whether the pace is fast or slow, the stop loss line is all suspended. If there is no life, there will be no tomorrow. Only if there is life, can the profit be maximized, and only then can we laugh until tomorrow.
Trading is a battlefield, trading is a shopping mall, trading is life and art. Understand the art behind the transaction, taste and think about the way of survival behind the transaction. Making money is not the goal, the sublimation of the soul behind the transaction is the source of satisfying self-thinking fantasy and accepting the tempering and precipitation of the soul.

will understand after making the transaction

Why do investors fear making money

"Be greedy when others are fearful, and be fearful when others are greedy." This is Buffett's wise saying. It is true that fear and greed are the greatest weaknesses of human nature. These two points are especially vivid in the financial market. It can make Goldman Sachs traders lose billions of dollars a day, and it can also make Merrill Lynch traders fall off the cliff instantly. It can also make talented trader Jesse Livermore Al shot himself.

Greed is easier to understand, and we often hear such words, such as "greedy" and "greedy". So why fear?

There are three types of fear in the trading process: fear of loss, fear of profit, and fear of orders.

Fear of loss: According to Keynes' risk aversion theory, the degree of happiness for a person who gains 1 dollar is less than the degree of pain of losing 1 dollar. Therefore, it is easy for investors to show that they are unwilling to bear losses, and often fall into the situation of carrying orders and resulting in huge losses in their accounts.

Fear of profit: According to Keynes' risk aversion theory and utility theory, investors can easily act as if they choose to pocket a profit when they make a profit, and dare not earn more.

For example, if an investor has earned $3,000 by being long on gold, he is actually ready to close his position at any time when he makes a profit.

Sometimes due to the greed of human nature, if he wants to earn more, he will be frightened and hold the list on tiptoe, but once the market pulls back slightly and eats up the profit, he can't sit still anymore, and may lose it immediately when he makes a profit of 2,500. Just run away. When he makes money again next time, he will be more inclined to leave the market earlier, and flee as soon as he makes a profit, but it is very likely that the market will move unilaterally in his direction.

Theoretical basis:
According to Keynes' risk aversion theory and utility theory, assuming that an investor's happiness utility of making a profit of 2,000 is 80, and the utility of making a profit of 2,500 dollars increases by 20, that is, the total happiness utility is 100. However, when he reversed the $500, his painful utility was greater than 20. Assuming it was equal to 30, then the total utility he obtained by closing the position and making a profit of $2,000 was (80+20-30=70).

It is also a profit of 2,000 US dollars, but the first profit of 2,000 US dollars has a happy utility of 80, which is greater than the utility of 2,000 after being backlashed, which is 70. So the next time he makes a profit of 2,000 US dollars, he will not choose to continue to hold it, but withdraw directly, because he is afraid of backlash again, and the utility obtained by withdrawing immediately is greater than the happiness utility obtained after backlash.

Assume further that when he makes a profit of 2,000 USD in his next transaction, the market rebounds and only 1,500 USD is left. At this time, he hastily closed his position again. Let's calculate the happiness utility of his final profit of 1,500 US dollars as (60+20-30=50).

So we see that the first time he made a profit of 1,500 U.S. dollars, his utility was 60, but when the market reversed from a profit of 2,000 U.S. dollars to 1,500 U.S. dollars, his happiness utility was only 50. Then next time he will tend to run away directly when he makes a profit of 1,500 US dollars, because the happiness utility obtained is greater than the happiness utility after being backlashed.

As time goes by, he dares to make less and less profit in the end, and he will express fear of profit, see no profit, and want to run away as soon as there is profit.

So what is fear list?

Fear of singles is the inevitable result of the long-term development of fear of loss and fear of profit. "Once bitten by a snake, I will be afraid of the well rope for ten years." Due to the fear of loss, many people will not dare to place an order easily. Many people blindly follow the crowd at the beginning and lead to a one-time loss. They uninstall the software angrily and never dare entered the market.

Furthermore, due to the fear of profit, placing an order is just to make a small profit, and due to the theory of risk aversion, one always suffers a loss, and once one carries it, one will lose money. As a result, many people will liquidate their positions at the first move, and in the end they are extremely afraid of even doing 0.1 lots. Because of the habit of carrying orders, 0.1 lots often induces him to increase his positions against the trend, and the heavier it gets, the final liquidation starting from 0.1 lots is also common. yes.

There are many people who always want to run away after making money, resulting in small profits and big losses, and they dare not hold positions to enlarge profits. So why are you afraid even if you make a profit? In the final analysis, it is still because investors lack a standardized trading system.

Whether it is entering, exiting or in the middle process, without systematic theoretical support, lack of confidence, lack of confidence, no matter how good the market is for you, you dare not make a profit.

And the emergence of various problems in trading is also because of this kind of consideration of gain and loss, opening positions when they should not be opening positions, hesitating when entering the market when they should be, but secretly delighting at running away when they can make a large profit. And when you lose money, you add and carry it, and you always seem to have the word "explosive" on your head...

All of this is because you don't have a standardized trading system.

Just imagine, if you don't even have a set of clear and executable operating standards, are you in vain with Buffett?

Only when you have a deep understanding of the basic laws of trading and the internal causes of your fear, and then undergo professional training, can you prescribe the right medicine. When you firmly believe in the theory you have learned, your mentality will naturally take a qualitative leap, just like you never doubt that an apple will fall to the ground.

With a rigid analysis system, coupled with a rigid operating system, the success of the transaction is naturally a matter of course!

After doing foreign exchange, I realized that speculating in foreign exchange is similar to being a human being, and only with high moral character can one achieve success. Becoming a corrupt official or a bad person is very popular for a while, but as a result, one report in the fight against gangsters and evil will lead to bankruptcy.
It is necessary to be patient, do it steadily, study hard, have a skill, and be an industry elite. Opportunities are given to those who are prepared. If you seize the opportunity, you will go to a higher level. Forex speculation is full of greed. Even if you win 99 times, you will return to your original shape if you lose once.

I still have some knowledge about the market, and I share it with you for reference only. After all, everyone’s understanding is different from everyone’s.

At the beginning, I worked on the mid-line mechanical trading system. It has been ups and downs for several years, with achievements, but not outstanding. At that time, I didn’t dare to think that I could make a living by professional trading, and my main job was still a researcher. Later, because I was going to invest in a company, the other party asked to develop a short-term and swing trading system. I figured out the key points by mistake, and then gradually entered the rising period. It wasn't until one day that I suddenly discovered that several traders I admired didn't make money in a certain period of time, but I was making stable profits. Only then did I realize that my understanding of trading had reached a new stage. However, the business of trading is becoming more and more fearful, and people who still don’t believe that the market can make a lot of money with just a click of the mouse, this business is not only extremely rare, but it’s all hard-earned money. Hey, I have stumbled all the way to the present.

Let's talk about the above.

When it comes to things that you only know after making a deal, in retrospect, there may be quite a few. When I first entered the foreign exchange market, I only learned how to do long and how to do short operations, and I didn't know anything else. Later, after being taught by some "masters", I learned about the moving average, and I went long above the moving average and shorted below the moving average. Later, through my own study, I also learned about indicators such as macd and kdj, and the golden cross is long, and the dead cross is short, but these things are still not good enough, and the loss is still liquidated. I haven't carefully counted how many times I have liquidated positions, but there must be more than 20 positions with a value of 1,000 US dollars.

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In fact, what I said above are all technical things, but what I want to talk about today is some ideological ones. As the subject said, anyone who comes to this market comes with the idea of ​​making money. After thinking about how much money I want to make here, I will do what I want to do, but in the end, I basically lose money very badly. So, I later learned that if you want to make money in this market, you must first know how much loss you can bear, because no one in this market can make 100% money. I have basically been making stable profits for 5 years now, but I think these are just the past, not the future. Therefore, if you want to trade, first think about how much loss you can bear.

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Continuing the topic just now, suppose we can afford a loss of $10,000 now. So is this 10,000 US dollars a one-time loss, or how many times do you want to divide the loss? I don’t think you should be too aggressive in anything. You don’t have such good luck, and God will not favor you because of your hard work of watching the market for 18 hours a day. Therefore, I personally think that the money should be divided into many points for trading, instead of directly losing money once or twice.

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Another point is to have a correct understanding of the foreign exchange market. I once told myself that once I made a deposit on the platform, I would treat myself as if I didn't have the money. Then, after losing money, it will not have much impact on yourself, so you will maintain a relatively good attitude. But it should be explained that this money is not borrowed, it must be a small part of your savings, otherwise, even if you have such a high awareness, you will not be able to do it, because once you lose money, it will affect your savings. Life.

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In addition, don't listen to some salesmen fooling around, saying that big funds are easy to do, high leverage is better than low leverage, and so on. I have been cheated in a similar way before, but it was not considered a scam. It was because I didn’t know enough about the market that I felt I was cheated. In fact, the foreign exchange market itself is a big market with a small scale. You can do at least 300,000 (30 times leverage, if 100 times leverage, it is 1 million) or more with 10,000 US dollars, then you think it is necessary for you to invest so much How much money? ​In addition, for leverage, the leverage is high. Although the margin is small, it will also cause many people to abuse the leverage because of the small margin, so that the liquidation will be faster.

Thanks for the invitation.

How long have you experienced some things in trading?

I have been trading professionally for 9 years this year, and I have thoroughly understood trading.

What kind of tragic blow did you experience?

The saddest blow is the big loss after each enlightenment.

Has the transaction changed your outlook? Has your personality changed? Have you changed the way you act? Has it changed your life?

Everything has changed, the biggest change is the heart, the heart now is completely different from the heart a few years ago.

Stay away from the transaction, the Air Force pay attention to cancel the order and escape!

For a while, I wondered whether this market was fictitious, whether the order was thrown into the market, why it was damaged, and whether the price difference between platforms was really so big? Is there a Holy Grail for the market? Why did I keep making losses, and then I gradually realized that the market makes money, but it is not you who make money, others make you, and platform vendors make you. The market itself is a scam, but most people don’t know it. , holding a book every day, staring at the K-line without moving for a long time, like being stupefied, this kind of situation abounds, think about it seriously, am I really suitable for trading? !

I just came into contact with foreign exchange a few years ago, and I feel that the money in it is really easy to earn, a few hundred dollars in a few minutes, well enough for today to play. In the following years, the market defeated him time and time again, thinking that money was no longer money, and he was just a number.
Until now, I think that foreign exchange is a digital game, looking for unwarranted rules in the ocean of numbers, and then what you care about is not the amount of money, but the achievement that this game brings you to run in the direction you see time and time again feel.