Traders, what moments do you feel "really broke"?

All traders, I hope you don't have the breakdown I did.

Maybe you will feel disappointed when you lose money in trading, irritated when you are locked up, and sad when you lose your position, but that is not a collapse, and life will continue. But when I traded at that time, I really collapsed, and now I advise everyone not to repeat the same mistakes.

That's right, I am a "desperado" who borrowed money to speculate in foreign exchange, and even mortgaged my house to speculate in foreign exchange. Because I have made a lot of money, I still lack enough awe for this market. At the beginning, all the net worth of 100,000 US dollars was speculated in foreign exchange, but when it reached 1 million US dollars, that person was no longer me.

As you can imagine, when this kind of expansion occurs, the next thing is to liquidate, and even my original $100,000 is gone. At that time, I didn't collapse, but I was red-eyed. How could it be possible to watch his $1 million disappear? So I cashed out, borrowed money through online loans, mortgaged, and once again got together 100,000 US dollars to enter the market. But I don’t know why, what I did was wrong, and it was a big loss for a heavy position, and I knew the moment when the position was blown again.

It's not yet my breaking point, but it may be on the verge. When I really collapsed, I saw a series of repayment bills and reminder text messages, but I didn't know where to get money to pay back. At that moment, life and the world seemed to collapse.

Now it is basically paid off, but the house is gone. After a total breakdown, it seemed like life was back to square one. Now I can still think of the sadness and collapse when I saw those bills were powerless, but it is more determined.

I am still in the trading market, and I have read the trading experience of many friends in Huihu. Now I take losses and profits very lightly, and I hope that everyone will take these things lightly, cherish what you have, and not gamble on what you don’t have.

Life is accumulation bit by bit, and so is trading. Don't collapse easily, and don't borrow money to owe debts to trade!

After trading for so many years, there are a few impressive things, but there are still very few things that really collapsed, only 2-3 things. Among them, the one that collapsed and was painstakingly remembered was the first liquidation in the market. Although it has been 10 years, the memory is still fresh.

This has to start from the beginning of entering the foreign exchange market. After being attracted, I want to invest some money for fun. That was in 2012. At that time, there was no online payment for currency transactions, and you could only go to the bank to purchase foreign exchange through email channels; most of the minimum deposit standards were 5,000 US dollars. Well, I entered the market with a deposit of RMB 30,000 without accident. It was only two or three years after graduation, and this was all I could afford. . . Well, I still asked my family to take 30,000 of 5,000 pieces.

At the beginning, he stayed put and frantically operated the analog disk. Also spent the first non-farm payroll in the simulated market. Jumping up and down excitedly, the money came too fast, it was a money grab. I can't wait to enter the market when the market opens on Monday.

Since I was attracted by the big fluctuation of non-agricultural for the first time, I knew the data market and became crazy obsessed with it. . . At that time, I didn't know which data was important and which data could be ignored. Does this affect? It doesn't matter, just do it all! ! ! I manipulated the data several times, and the results were mixed, until the turning point came --- Eurozone CPI.

When I was chatting with people before, someone told me: The most exciting thing about currency trading is the data. Once the data is released, the market will flutter~~, it’s all money. So I know that there is another way of data sheets --- betting on data, that is, entering the market in advance.

Isn't it just entering the market early? This is not a problem. At that time, everything I saw was money, and all I saw was the road to the top, what? What should I do if I lose money? Sorry, never thought about it. . . Ever since, the Eurozone CPI entered the market ahead of schedule, with 1 lot of EUR/USD. As for the direction, it is too old to forget. . .

After entering the market, like all people who are new to the foreign exchange market, they stare at the market without blinking their eyes. What? so serious? Oh, I didn’t know a few K-line patterns at that time, and I only knew the superficial reasons for the rise and fall, and I didn’t know anything about the trend. But does it affect it? It doesn't affect it, it doesn't affect me at all to keep an eye on the change of the money after placing the order. Fuying smiled openly, Fukui felt so empty in his heart, what a loss. . . Will it lose more? It should rise later. . All kinds of bloody plots are presented in the mind.

Data released. . . . Huh~ earned it. At that time, I thought it would be no problem to hold it for a while. That excitement, the hand holding the mouse was shaking.

Do you think I will close the position after a while? Naive~! Just when I thought it was almost the same, I was about to close the position and count the money. Stop ~ electricity ~! ! ! Where did the relevant APP come from at that time? Ever since, it was supposed to be a story about sleeping beautifully after making money, but the style of painting changed suddenly --- falling asleep uneasy. . . During the period, I woke up every now and then to see if there was a call. . . Anyway, I didn't call when I went out in the morning.

Simply the result is good, rush to the company, a look, yo~! Made $700. It's mentally refreshing. The idea of ​​making a data sheet became more and more firm. In this way, I, who knew nothing about the foreign exchange market, went further and further on the road of high risk and high return. . . .

until. . . . Liquidation after 1 month. Yes, 1 month from deposit to liquidation. . . At that time, I was completely dumbfounded. . . I'm so broke? The wages saved for several years disappeared in one month? ?

The background at that time was that I voluntarily resigned from the government agency (family members were dragged down), young and vigorous, thinking that the world is so big, I want to make a breakthrough. My aunt didn't want me to go out, so I asked my uncle to find several units, Zoomlion~Post~Urban Management, there are 7~8 anyway, and said: You choose one and enter as you like. The world is so big, I want to explore it. Yes, I did not choose one. . . Angrily, my aunt raised her hand and put it down several times. . . He had a complete falling out with his family, and then went out by himself. At that time, I thought I was quite individual, but now that I think about it, I was really self-willed. He was not beaten to death by his parents, so it was his own.

back to topic. . . Being penniless, it was very difficult for me at the time. My family was cut off financially, and I wanted to be strong, so I ate steamed buns solidly for 2 months. . . After that, I became honest for a while, summed up all kinds of studies, and stared at the market for 12 hours a day (well, I was working in a currency trading company at the time, so I watched the market by the way). As for the follow-up, the liquidation was close to a year, and I couldn't help but went to my family to take another 30,000, and finally made more than 10,000 US dollars. This can be regarded as his first pot of gold.

The reason why the memory is so fresh is that it was the first time I came into contact with such a profitable industry. The speed at which I made money or lost money was unmatched by several stocks. Another point is that it was the first time that I suffered so much, two meals of steamed buns a day. . . . At that time, it was really broken. I had no savings, no money, and had a falling out with my family. . .

Anyway, after this liquidation, I understood a truth: the pursuit of compound interest rather than sudden profit. From entering the industry to the present, I have only liquidated positions twice, and the maximum loss is about 75%, of course it is definitely not a one-off. It is estimated that the first time the lesson was bad enough, I remember it.

When doing transactions in the early days, the frequency of crashes was very frequent. Big crash one week, little crash every week.

Constantly throwing things, only to regret afterwards about my actions and stupid trade orders. After that, I developed a habit of depositing a small amount each time, and the proportion of funds used in each transaction is 20%-30%.

There will be times of liquidation, and the first few times of liquidation are very tempered. Throwing things and yelling are common. Gradually, it became commonplace, that is, a cup of milk tea and a hot pot meal. Playing on weekends, mountains and rivers, cats and dogs, ease the mood.

It's the best option to let it go completely.

Trading is a job that requires a high degree of concentration. On the surface, repeated anxiety about the market is a state of mind, but in fact it is an immature strategy.

In the market, someone makes money. Naturally someone loses money.

Although the financial market is hugely profitable, it is ability, not luck, to be able to make lasting profits. After gradually waking up and letting go, I will not have hope for any transaction order, nor will I be disappointed with any transaction order. This sentiment has continued until now.

Now it is almost indifferent to all open position transactions.

Whether it is risk control, mentality, stop profit and stop loss, or strategic model, all of them are elements of a successful transaction. There is no lasting good and no permanent bad, ignorance and exhaustion are my constant state of mind right now.

The ancients said: No is extremely peaceful. The two sides of things are vividly displayed in the transaction. When the bad side happens, just move your fingers and it may turn into a good development direction.

Trading makes people collapse, because I can't predict the worst outcome of the transaction. Calmness is useful, based on traders with sufficient preparation and experience; mentality can be controlled, it is necessary to predict the trading results in advance.

The collapse of trading is not the trading itself, but the magnified expression of one's own way of dealing with the world.

If you want to be successful in the trading market once and for all, it is necessary to work hard for 5 years in the early stage. I believe that some people will shorten it to 3 years, but for most people, 5 years is the shortest time.

Everyone breaks down, and life is easy to break down. Trading is just a part of life.

It's good if you can see through it, but it's still the same if you can't see it through.

If it is said that the moment in the trading market that can cause a trader to have a psychological breakdown, I personally think that there are two most common situations. The first is the liquidation of the account, and the second is profit-taking and final losses. Today I will focus on the crash caused by the liquidation and the solution.

A liquidation hits the weakest part of human nature.

Many traders have been in the foreign exchange industry for many years and experienced several times of liquidation, but they have always cherished the dream of trading for a living, kept reading books, reviewing trading, writing plans to review trading, and summing up their own problems, but they kept losing money . On the other hand, the friends around me have doubled without their own efforts. I feel that I have been stunned. Traders know that there should be more than just trading in life. They have been living in depression, despair and confusion during the opening for a period of time. Returning to life, constantly suppressing my emotions, I feel like I'm about to collapse!

At the moment of liquidation, you will feel that your brain is blank, which is a feeling of relief.

If you lose enough and fast enough, your brain will be starved of oxygen and shut down. The oppressive feeling of being liquidated creates enough desperation that the blood rushes down instead of into your brain.

The moment of liquidation is "exciting", because it directly brings substantial economic losses; but what is more painful is that it makes people start to question their trading system and destroy their confidence.

After a large loss or even liquidation, 63% of traders will do two "dangerous" behaviors:

One is that they enter the market impulsively again because they are eager to recover their losses. They are eager to prove that their trading system is correct.

The second is to have a fear of the market and trading, and decide not to trade that product again.

The first is the "deprived super reaction tendency" described by Munger. Because of the eagerness to equalize, they lose more and more. This kind of unwillingness to admit defeat is one of the important reasons why gamblers go bankrupt.

The second is the typical "snake bite effect", that is, you become extremely cautious after losing money. Either way, the result is to wear down the will and eventually lose hope of success.

The negative impact of this state may be greater than losing money. In Reshaping the Psychology of Stock Trading, Steenbarger writes:

"The difference between a system trader and a depressive trader is that those depressive traders lose not only money, but also hope. System traders can continue to trade methodically because they have put the expectation of loss into the system Depressed traders without loss expectations and coping measures lose sight of the future and lose all motivation.”

After liquidation, the difference between an ordinary trader and a master trader is that a master trader will not fall twice in the same place, while an ordinary trader repeats the same mistake—turning over a transaction made many years ago If you look at the log, you may find that the original trading mistakes are still being made. Because the mechanical and repetitive trading mode makes traders lose their free will.

Liquidation is painful because people's actual returns do not meet expectations.

Actual returns are uncontrollable variables, so we can start by controlling for expected values. This includes two aspects, one is to manage expectations of the market (this requires a correct understanding of the market); the other is to evaluate oneself (this requires a correct understanding of oneself).

market expectations.

After a liquidation, many people will not dare to open another position due to fear. In fact, the most fundamental manifestations of the market are nothing more than the following:

Price performance: up - down.

The actions of a trader: buy-sell.

Changes in capital structure: Win-Loss.

When you recognize the nature of the market clearly and feel that it is not so mysterious, your fear of it will naturally disappear; at the same time, trading confidence will also be established.

self-assessment.

To know yourself correctly, you can learn to observe yourself and look for patterns.

For example, you can summarize what characteristics you have when you are profitable, and what are the repeated factors of failed transactions. This may require an extensive trading journal to be reviewed at the end of each week.

The journal should include the trades you made, the principles used in the trades, profit targets, stop loss parameters, frame of mind during the trades and the results of the trades. Every week you should rate yourself on how well you have completed your trading plan, and do a review on the success or failure of the trade. The purpose is to form a feedback loop so that your trading can continuously improve.

It is worth noting that such a log is not to record your profit or loss, but to urge yourself to act according to the trading plan.

A very confident transaction may also lose money, and an impulsive transaction may also make a profit. Since you cannot control whether the next transaction will be profitable, what you can do is to evaluate the possibility of success or failure through research and research. Results are planned.

This approach can not only make people reflect on their trading mistakes and avoid repeated mistakes; it can also urge themselves to be faithful to the trading plan.

The last thing I have to mention is-explosion-proof thinking, which will be the prerequisite for opening a transaction.

How should I put it, what I want to say is that a loss of goods is not worthy of love.

And I'm the loser.

Although my girlfriend knows that I have been doing transactions, and I basically report good news but not bad news, she actually knows that I am basically losing money, and I have lost a lot. Although she also told me to give up several times, maybe my character is really not suitable for trading, but I never admit defeat.

We were still saving to buy a house and I kept losing money. I was under a lot of pressure, but I endured it all by myself.

Once she was browsing Taobao and saw something she liked very much, but she said she didn't buy it to save money to buy a house. And at that moment, when I thought of the money I had lost, I turned around and began to cry silently. Really, I kind of broke down at that point.

I feel like a black hole that keeps sucking away all the money we make and save and never get it back. But my girlfriend is working hard and saving money.

I really don't deserve it.

If one day people really don't see me appearing on the forum, then I may really have given up the deal. Maybe it's a good thing, maybe, who knows?

When it comes to collapse, the years two years ago immediately come to mind.

I continue to have no trading strategy that satisfies me. I am very confused and tired. I have never known where the breakthrough is. I had no direction on where to go, and I was very anxious and fragile during that time.

After that, I have been resting for 2 months. I don’t watch the market or read the information. I work out, sleep, exercise again, and sleep again every day.

One day, I suddenly felt that I had cleared away all negative emotions, physical exhaustion, and mental stress. When I returned to the market again, my thinking was quick and clear, and I quickly understood my fatal mistake after analyzing the strategy:

1. Interpretation of bare K-line

These two items, the first item is the cornerstone of all trading theories, and the second item is the magic weapon for all trading orders to escape

I have repeatedly emphasized the importance of naked K in many articles. It can definitely be effective when it falls into the real offer. Whether the analysis process can make a profit in the real offer, naked K plays an absolute role.

2. The closing strategy is not comprehensive

Any trading strategy is a prediction. A prediction must be a probabilistic behavior, and it is a time when the probability will definitely result in a loss order.

Therefore, the stop-loss strategy is the most solid barrier for all transaction orders. If you want to achieve the level of retreat with the liquidation strategy, in addition to high-quality entry points, flexible exit strategies must be comprehensive. include:

• l There are 2 floating profit retracement closing methods

• l 2 manual closing methods

• l 3 fixed take-profit exits

• l Fixed stop loss exit 1

• l One compensation strategy

In this way, under any market, whether it is a normal trend or an extreme market, I have a well-considered way to deal with it, so that every entry transaction has sufficient strategies and financial guarantees.

Subsequent transactions were basically smoother and smoother, and there were still some adjustments, but they were all minor adjustments and would not have a fatal blow to the firm offer.

In essence, today, I have emphasized to many people the importance of naked K-interpretation. The entry strategy and exit strategy of the firm offer are based on K-line analysis.

Let me tell you my own story, I am still having a breakdown.

It was not long after graduation, because I had just come into contact with this industry, and I was looking forward to getting rich quickly, spending money like water, and calling the wind and rain. So I soon entered into the transaction by myself. At that time, all kinds of spot silver were popular.

The barbaric development of the industry + the longing for making money, all kinds of wealth information surround you every day, making it hard to resist. But I just graduated and didn’t have much money, so I asked my family for 20,000 yuan and promised to make money for them.

In fact, the consequences have long been doomed. First, there is no experience, second, no technology, and third, no mentality, and the position will soon be liquidated. At that time, the Federal Reserve implemented QE3, and the theory said that gold and silver would continue to rise sharply. Who knew that the next day would be the highest point in history at that time, and then plummeted all the way.

Various emotions such as anger, helplessness, and panic accompanied me, and I really collapsed at that moment. But what broke me the most was the attitude of the family behind. Although I think 20,000 yuan may not be much, but for a poor family, it is already a lot. My parents basically ignored me after that, making me feel like I was really an orphan.

Later, I embarked on a vicious circle, clenching my teeth and thinking about returning the money to my family. So, I continued to speculate while going to work, from silver to foreign exchange. But I knew that I didn't control my mentality well, so I kept going around and around, and became a moonlight clan.

As of today, the situation may have improved slightly. But there is still a hurdle in my heart, and I feel that I will never be able to pass this hurdle.

Trading is a never-ending war, and collapse is naturally a common occurrence.

In recent years, black swan incidents have occurred frequently, and market fluctuations are really fatal. Brexit, Trump's coming to power, Sino-US trade war, not to mention this year's new crown epidemic, these extreme market conditions are accompanied by huge uncertainties and risks.

What really gets you in trouble is that the world is not what you imagined it to be. This is the case for trading. Did you really expect the S&P circuit breaker several times in a week and the oil price become negative?

The market in March this year is a series of bursting warehouses. Whether it's a trading community or a Weibo post bar, the screams of selling are screaming:

"On March 9th, my second liquidation in my investment career; on March 12th, my third liquidation; on March 17th, my fourth liquidation; on March 18th, my fifth liquidation. "A Hong Kong stock investor with the online name "Watermelon Yogurt" stated in his own words, paraphrasing Buffett's long-time joke, I am still too young. After a while, everything recovered, the world was still the same world, but it had nothing to do with me. "On March 19, the Hong Kong stock market hit a new low. In order to avoid passive liquidation, he sold all Fosun International and some other stocks. Including those sold on March 13 and 18, he sold a total of nearly one million Chips. "The thought of losing so many positions at a low level is unacceptable anyway, so I have always adopted an ostrich strategy, and only lost a little every time I had to reduce my position, until I was forced to significantly reduce my position yesterday. "

"Today is March 18. If Ping An falls by another 4%, Xueying Securities will start to liquidate. I don't know how, and I don't want to know. In the end, I mustered up the courage to face the account directly. Although I already have the psychological Prepared, but still surprised. Personal account: -54.5%; agency account: -19.34%. 2020 may be the most memorable year in my life."

"Woke up on the morning of March 19th and opened the bank APP to look at the market price of silver TD in the account, and found that the original holdings of more than 60 lots had been liquidated, more than 80,000 deposits were wiped out, and I owed the bank more than 1,000. Although I had been mentally prepared to be liquidated long ago, I was still confused at this moment, and my head was blank. The bloody lesson is in front of me, and I would like to advise everyone, don’t use high leverage.”

"If you have never cried alone in the middle of the night, you are not qualified to talk about life."

Trading is a journey like purgatory. Only those who have gone through hardships can truly understand the difficulty of success.

The collapse is at best a small episode of trading. After staying in the market for a long time, all the edges and corners will be smoothed. At this time, all the mistakes that should be made have been made. In fact, it is only one step away from success. There is a saying in the trading world that success should not be too early, and failure should not be too late. Summarize your own mistakes, give full play to your own advantages, find out the principles of the market, and recognize the nature of transactions and the laws of market operation.

This has to start when I entered the foreign exchange market. By the way, how did I get into the foreign exchange market? I'm sorry to say, but I was actually tricked into it. When I was looking for a job, I somehow found a job in foreign exchange. At that time, I just entered the society and had little experience. The recruitment said it was sales. I thought it should be similar to stock sales, so I went there happily.

After successfully joining the company, I found that they did not have strict requirements for sales. They did not require leaflets to be handed out, nor were they required to make phone calls. Well, anyone who has had a similar experience should already know that applicants like us are their potential targets. He Nai was too young at the time to understand.

First, we opened a demo account for us to familiarize ourselves with it. After a fierce operation, hehe~~ Anyone who bought randomly has made a profit. This money is exaggerated, and it feels much higher than the return on stocks. Well, successfully hooked.

As for them, they didn't push too hard, they helped us train related things while seducing us. He also told us that if the customer is pulled down, we can get a commission of about US$7 for every lot the customer trades, and then give various hints. As a young man who has just stepped into society, who can resist this. My mind became active. If I open an account by myself, I can earn commissions while making money. It’s as small as 40 yuan per lot. If I do more transactions, my life will be happy. I'm just too smart.

Yes, I thought I was smart and opened an account with $5,000. Thinking that even if you go in and come out immediately, you won't lose much, so it should still be possible to earn a commission. A good life is about to begin, and I feel that I am about to develop.

Then there are various operations. Facts have proved that I was completely overthinking and overestimating myself. The account I opened went to the street within a month. And I was trembling with a commission of 5,000 RMB. . . Well, I spent 30,000 RMB to enter, and in less than a month, I got 5,000 ocean commissions. . . I'm so fucking smart. At that moment, I was really about to collapse. I have never seen "spend money" so fast. Even if it is a stock, it is not enough. . . . .

Graham, the originator of value investing, once issued a reminder that Mr. Market is a lunatic with a weird temper and may not have any rationality at all. The fickleness of the market makes the crash a standard configuration for trading.

It's really hard to say when I feel broken. Because different people have different psychological defense lines, the reasons for detonating collapsed emotions vary greatly. The most common crash must be the wrong market, the account is blown up and the loss is huge, and the only thing to do is turn off the lights and eat noodles.

Let’s just turn off the lights and eat noodles. This is a classic A-share stalk.

On December 7, 2011, the black swan incident of Chongqing Beer broke out, triggering a continuous limit-down, and the stock price fell sharply. On December 15th, the night when Chongqing Beer experienced the sixth consecutive "one" drop limit, a netizen from the Internet stock bar of Dongfang Fortune posted a post titled "Crying While Eating" at the Chongqing Beer Bar. The content of the post was very Simple, just a short sentence - I came home today, cooked some noodles, cried while eating noodles, tears dripped into the bowl, and did not turn on the light.

This stockholder didn't have a single word of complaint, curse, grief, or pain, but his state of numbness from grief and torment of soul and body was vividly portrayed in a few short sentences. "The light is not turned on" is a true portrayal of the exhausted state of extremely shrinking life desires after the spiritual trauma, which can be described as the finishing touch. After the post was issued, it quickly resonated among shareholders and netizens. Since then, the term "turn off the lights and eat noodles" has been widely quoted, and gradually extended to become a unique way of expressing the inner pain of my country's stockholders.

For traders, crashes are similar, that is, the endless pain caused by losses.

I remember that in the Xiongan concept market in 2017, some building materials stocks that usually had no sense of existence rose very fiercely. Many people took advantage of this wave of rebound to get rid of their traps, but some people did not choose the right time to enter the market and stood guard at a high position Not to mention, the more serious ones will be out of the game directly. Just look at the experience of a private equity investor.

W is a Ph.D. in the industry. He used to be in a building materials stock in Hebei for 2 years, but the position was not too heavy at that time, but he always felt that this stock would come back sooner or later. Here it is, the stock took off, which was originally a good thing, and it was basically about to be undone, but W didn't know what to think, thinking that this was the opportunity he had waited for after 2 years of lurking, and he actually put all his net worth, several million, all-in , And what’s more, it went to 1:3 to raise more than 10 million yuan, and even ALL IN into this stock after the continuous daily limit. What's even more amazing is that I just rushed in and was stopped by the special stop. As soon as the trading resumed, there were 2 consecutive limit drops, and then I hesitated for a while and then fell a lot. It fell by 45% in about 2 weeks. With a leverage of 1:3, in fact, the position will be liquidated if it falls less than 30%. W can borrow money everywhere to cover the position, but after the fall of 45%, W can no longer borrow money, so he can only close the position one after another. W returned to the proletarian family in a blink of an eye, and he estimated that it would take three years to slowly pay off his debts. But what is even more irritating is that two days after the position was completely closed, the stock miraculously continued to reach two daily limit boards.

Let’s talk about the shocking U.S. stocks. In March, the U.S. stocks melted down four times in ten days, with an average fluctuation of more than 9% for three consecutive trading days, the largest weekly decline since the 2008 financial crisis, and the largest weekly increase in the past 90 years... Various The historical record was refreshed, and countless investors shouted "see you soon".

"Yesterday hit a new low in intraday trading, and the intraday risk control ratio of my IB account was once negative. In order to avoid passive liquidation, I chose to sell some stocks, plus those sold on March 13 and 18, a total of Selling nearly a million chips. These are all bought gradually at an underestimated price, but lost at a cheaper and more underestimated position, which is heartbreaking. I don’t dare Call it value investing."

Charlie Munger said, if you want something, work hard to deserve it. If you want to make money in the market, feeling speechless and disorganized are all part of your hard work and a necessary price, so just take it lightly.

In the process of trading, every trader may have been or is experiencing the process of being ravaged by the market. I personally encountered many times when I was ravaged by the market and wanted to collapse in the decades of trading, but it is good I've survived. Now that the subject of the topic has such a problem, I will summarize from my personal experience what things happen to traders, which can make people feel a sense of collapse.

Sometimes the words can't be uttered, and many problems in the transaction require chatter and sporadic feelings to understand. In trading, it is difficult to clearly divide all the problem points. After summarizing the principles, you know it, and you seldom care about which category these principles belong to. So some of the feelings and thoughts I write below may be wrong for some idle articles, but one thing can be guaranteed, that is, the following conclusions can allow readers to take a big step on the road to get rid of the torture of trading.

1. In actual trading, what things will we be tortured to the point of collapse?

(1) A large wave of profits was made, and finally the large wave of profits before being swallowed by various repeated stop losses, and finally the account returned to the state before it was profitable or in a loss.

(2) I want to make profits run, but in the end I made a lot of profit but was hit at the trailing stop point or refused to give up the trailing stop loss, and finally became a stop loss. At this time, my mentality was blown up, because the duck I got flew away.

(3) Can’t tell the difference between shocks and unilateralism, stop losses repeatedly during the shocks, but can’t hold on to the unilateral market, or keep grasping the top and bottom of the unilateral market and then stop the loss all the time. In this process, there is also hesitation when I grasp the top and bottom, and the execution of the set stop loss is not in place and I feel bad to stop the loss in advance. This part of the profit, and then the market will not dare to enter the market later, so this wave of profits will eventually be missed.

(4) Entering the market repeatedly, making small losses continuously, and shrinking the account, it may be that a market has gone through a range of 30 points, and the loss of 60 points may be removed by the stop loss.

(5) There is a long signal at the key support position of the high point, confidently enter the long order, but the order reaches the top, and when I come to my senses, I am very passive and unable to exit the order.

There are countless of these problems, and they cannot be corrected for a while. If the above problems are not very special, the mentality will basically explode. But the market will focus on your flaws and sprinkle salt on it. At this time, the state of the trader will get worse and worse, and the losses will increase. People's strong personality will be magnified in this process, just refuse to admit defeat, and then the account is basically impossible to read.

In fact, the above problems can be improved through some scientific methods, as long as we calm down to think and study, it is enough. How to describe it? There are so many college courses, but which career do you want to do. We have to grasp the core issues instead of summarizing every issue.

2. How to improve the status quo of being ravaged by transactions

I have a question here, why do we learn technology? In other words, what does the technology we learn serve?

My own personal understanding is that I learn technology to serve me by "reducing unnecessary operations" and "increasing the execution ability of entering and exiting the market". I also asked someone this question a few days ago. I forgot what that person said earlier, but after hearing my answer later, he thought it was a disciplinary issue. I know that many people will argue, thinking that technology is technology, and discipline is discipline. I think that the superstructure can only be achieved with the underlying foundation, and the discipline can only be achieved with technology. An immature technology, how to enforce discipline?

What is technology? Technology is definitely not as simple as predicting a range and analyzing a direction. A person without actual combat will not be able to do a good deal, because the list cannot be held. The market will either rise or fall, and the direction of analysis will always have half the winning rate. As long as the market is running, it will always reach the predicted point or even exceed that point within a reasonable range, and the technology is that I am in the right position of the market. When you understand the situation, you know the basis for rising and falling during operation, the possible changes at the end of the rising and falling, and the differences in details. This is technology. Whether I can execute my operation is that I know the most likely direction of my order after entering the market, which position triggers which point, I must exit the market unconditionally, and if I do not reach the position, I still hold on firmly. Whether unnecessary operations can be reduced is because I know whether the market has fed back the conditions for me to enter the market at this time. All the "reducing unnecessary operations" and "increasing the execution power of entering and exiting the market" are definitely not empty words, and these must be implemented in specific points. A mentality and discipline that can be persisted or waited out of thin air cannot stand the test of a long time.

So back to the question above, how do we know what we need? If the purpose of a technology itself is to "reduce unnecessary operations" and "increase the execution of entry and exit". Then at this time, you have to reflect on whether the trading techniques you have used in your trading for so many years have these two points. If it is not available, then this technology is meaningless in the long run. It may be profitable in the short term, but it cannot stand the test in the long run. At this time, you need to calm down and consider how to learn technology to make yourself profitable from the perspective of "reducing unnecessary operations" and "increasing the execution ability of entering and exiting the market". If you read the first module of this article, you will find that the root cause of most of the different problems is the two points I mentioned at this time. If you work hard on the two points of "reducing unnecessary operations" and "increasing the execution ability of entry and exit", then you will take a big step to change the status quo of being ravaged by transactions.

The most taboo thing about futures investment is to keep an eye on the market every day. Real speculators will not keep an eye on the market every day, unless they are doing intraday trading. After so many years of fighting in the futures market, I broke my position three times, paid a lot of tuition fees, and lost money before serious. But, over 10 years later, I can make a profit.

When I first started trading futures, my account doubled. The accumulation of wealth in a short period of time made me lose my way, and I became very impetuous. I felt that I was very good. Later, it turned out that I was not very good, but just caught up with the rise Cycle, buying and selling every day, selling high and buying low, short-term, mid-term has been held, the funds in the account have become more and more, arrogant, arrogant, a little arrogant, and later, cotton in March 2008, misjudgment, from around 17,000 I started a long position, and then fell all the way without stop loss, so that later, there was no way to stop the loss, and the funds in the account also shrunk severely. I broke my position 3 times, lost my previous profits, and even lost my principal. I lost more than 6 million. At that time, I also fell to the lowest point in my life. In one year, my weight dropped by 30 kilograms, and I became very decadent. I also suffered from depression. Lack of sleep for a long time made my condition worse and worse. Sometimes, I even thought about committing suicide to end this painful life. I felt that I was too tired to live. From a promising young man envied by everyone, I became a useless person. Smoking, drinking, and doing nothing every day. After living like this for 2 years, my wife finally left. When she left, she just packed up her simple luggage and took nothing with her. She left her only savings to me. Maybe She was disappointed in me. She always thought that I could cheer up and face everything, but at that time I didn’t have the courage to face life. Looking back now, I feel that I was really not a human being at that time. After she left, I sent the child to me. When I arrived at my parents' house, I still remember it very clearly. When I went downstairs, I saw the child standing on the balcony and looking at me. Suddenly, I couldn't control my emotions, and secretly swore in my heart that I couldn't continue to be decadent like this.

Where did I fall and where did I get up? For the sake of my children and my parents, I can’t do this to myself. Children are innocent. The reason why I quit my job as a professional futures investor is to give them a good life.

But things backfired, and the last complete family was torn apart.

I want to find a time when it is the most frustrating.

2020.4.28

At 15:26, a sudden wave of market turned my profit into a loss within 1 minute, and I pulled back a bit, and then continued to advance suddenly, triggering a stop loss to close the position.

To be honest, the mentality blood mother collapsed. After closing the position with a stop loss, I looked at the market a few times. According to my trading model, I can continue to make orders, but my mentality has collapsed, so I just shut down the computer.

Then I just couldn't sit still, wandered around the house twice, my temper was relatively introverted, and I didn't dare to yell, so I yelled twice. In fact, I really want to yell, two voices. Sitting in a chair and thinking about it for a while, I opened Netease Cloud and listened to a few favorite songs.

The whole process took about two hours. After adjusting my mentality, I began to objectively analyze the losses. In fact, the content was the same as the analysis in the previous two hours, but the previous two hours were not so much analysis as self-blame.

I held this empty order for more than three hours. In the last hour, the market began to fluctuate. According to my model, I will make a reverse hedging order at the bottom, but I really hope that the market will continue to go down, so I don't do hedging. Coincidentally, a minute after this decision was made, there was a big wave of market movements. It rushed ten points at once, and then pulled back and continued to rush. Another point is that one hour after placing an order, my accidental analysis showed that the market as a whole was bullish, but the period I made was bearish, but I couldn't bear to calm down. Because my analysis is not in the model, I don’t think it’s a big problem. Now it seems that I can add some restrictions to the model, but I need to use historical data to do a review first.

When people focus on one thing, they ignore other things, and when I focus on the pain of loss, I also magnify the pain and ignore other things. In fact, I just need to solve the problem and do better in the future.

Traders who are not always rational will make the market not conform to the theory of supply and demand in the short term, and come out of various shapes, so the market is unpredictable, stop losses well, and always respect the market.

Trading loss does not mean trading failure, let alone the failure of the whole person. No one can avoid making mistakes, but if you can't learn from your mistakes, you will get nothing

The worst time for me was when I first entered the industry. The family is in debt of 15 million, and I mean that I can earn it back by investing in gold, and I borrowed 200,000 from my uncle. At that time, it may have been lucky. I made 5.8 million from 200,000. I thought I would stop if I made 6 million. Return the uncle's 200,000 yuan to him. The rest I pay foreign debts. When I lost money, I increased my position, and the position became heavier and heavier. At that time, I was red-eyed, and I didn't care about so much. I increased my position all the way, and ended up with a liquidation. 5.8 million lost in two days. After being decadent for two months, I traveled to Xinjiang, read the Qur'an, and realized the law of trading in heaven. At present, all foreign debts have been paid off. Complete financial freedom.

As a novice investor, it may not be clear, but for veteran investors, many people have suffered losses from oolong fingers. "Oolong finger" is due to the wrong operation on the keyboard, which leads to the loss of control of the stock market, foreign exchange and other financial markets, causing sharp fluctuations, often resulting in huge losses of hundreds of millions. Although the reason behind it may always be a mystery, whether it is too much ambition of the trader or a wrong operation, it will eventually bring a miserable experience to investors.

In fact, if the real "human error" is still controllable, it is not scary. What is really scary is the "design flaw". I don't know when this flawed design will make a disease, it is really scary. What needs to be especially vigilant is whether someone will deliberately embed "timing defects" in the design software, which will occur at regular intervals according to the predetermined procedure and time, and "mistakenly send" order instructions. Then the trading market will become a real high-risk industry. What is certain is that the current domestic financial system has not established such a bulletproof system.

What lessons does "Oolong Finger" teach us? As an experienced investor, a stop-loss and take-profit standard must be set for each transaction to prevent various emergencies in the investment market, including oolong fingers. When the unilateral market gets out of control with stop loss and without stop loss, the ending will definitely be completely different. Always keep one hand in investment, "Oolong finger" must be guarded against

When I was a novice before, I felt that liquidation was really a crash, but later I found out that as the trading time increases, the level of collapse also increases. The one that impressed me the most was last year’s girlfriend’s birthday. Yes, some people will be able to guess the ending when it comes to this. It was a coincidence that I was late for dinner because I was looking at the deal. What about her? I have always had opinions on my trading, so she must have reached her peak this time, so she told me that she broke up with me. It was helpless and made things worse. When I went back, my position also exploded. I didn’t know at the time that I was broken up. The pain is more painful than the liquidation, the pain is over, I am a big man, I cried all night that day, recalling the years of this transaction, the liquidation may be a loss of money, but it is mainly the relatives around me My incomprehension and doubts were the last straw that overwhelmed me, but now it’s all right, the breakup period has passed, and I can make a small profit. In the end, I found out that I still have a deep heart in trading, and now I just wait for a suitable woman. friends...

Thank you, I was a little teary-eyed when I saw this.

At that time, I remember that when I got off the plane from Chongqing to Shenzhen, I was full of expectations, thinking that I was talented enough to let the market pay for my consumption. I rented a shared room in Nanshan, Shenzhen. There were no desks and chairs, so I started making orders while lying on the bed! I still remember that I recharged 10,000 US dollars. This is my last hole card. I have earned more than 500,000 yuan in business. This is all I have left. I imagined that if there is a number, I will win it back one day.

Result: The condition was extremely poor, and all orders made in two days lost money! 10,000 U.S. dollars has shrunk to only 2,000. Out of gold, thought for a long time!

Got a job 0.01 hand start.

Every morning is very dull, after 4 pm, it seems to be wound up! I think this is the normal state of every trader. Even if he loses and loses his fortune, he still fantasizes about the day he conquers the market!

Life is still the same, and the happiest time is still after 4 pm. It is inseparable from the drug of the financial industry.

Give yourself one last chance, $20, this is the last gold in my trading career!

I'm literally breaking down. . .

Obviously, the transaction can be stable according to the plan, but it will be a mess of losses

It’s another miserable question, let me also talk about my own experience, and I am also grateful for this experience, which makes me stronger! So everything has two sides, as long as you don't give up, there is always hope.

When I first came into contact with margin trading, I decided it was my life's work. I am not afraid of hardship, I started to read and study, and for the first time I put 10,000 into the market. The first purchase was a very small amount of EURUSD, and my heart jumped in my throat because I thought it was a symbol of the beginning of my new life. The result was that the position exploded on Friday of that week, and the new life ended. I didn't practice any theory, I was just gambling, and the gambling made me dizzy, and I couldn't sleep all night. On the day the money was lost, I had a fever of 40 degrees, called an ambulance, and took a drip all night.

I'm not good at smoking, drinking, or gambling, and I'm just a pretty girl. I think I'm prudent, so it's okay to be in the market. But as soon as I touched the mouse, I was betting. First I used big money to bet small money, then used big money to bet big money, and finally used small money to bet big money. The more you gamble, the less likely you are to win, and the less likely you are to gamble, the more you gamble. The gambling is over, the illness is cured, and you can enter the next stage.

In the second stage, we began to pursue probability and have been pursuing high-probability opportunities with a small proportion of funds. If you want to win quickly, you must artificially increase the chance factor. So I was planning to develop automated trading so that I could observe multiple markets at the same time. At that time, I was still studying, taking a 500-credit course, and one of the courses at that time was FINANCIAL MODELING.

In fact, FINANCIAL MODELING, to put it bluntly, is nothing special, it is to use computer programs to inject "hypothetical" vitality into finance, and even ACCOUNTING can be used as an automated model, which is nothing advanced. I used to major in programming language and algorithms in my freshman and sophomore years, and I had friends who were graduate students in computer science to help me, so it was not difficult to do it.

A MODELING accounts for 40%, and it is worth spending energy. I simply built a 5-minute moving average cross trading system, and statistical theory analyzed automatic entry and manual exit. I don't know what the automated trading of regular companies is like. Anyway, based on my understanding at the time, it was similar to automation. The statistical results are excellent, so I use it with high hopes.

Not long after using the system, it was the second time when I broke my position, and I was blown up by the system. Liquidation is the best teacher. Not only is it liquidated, but it also cripples the mind and rapes the belief. What is a devil, the devil is to destroy for the sake of destruction; what is God, God is to destroy for the sake of rebirth. So when your funds, ideas and beliefs are all destroyed, and the devil and God come to you at the same time, who do you choose?

I don't touch any automation anymore because I want to follow God. The lecturer who gave me that system was going to go. He insisted on knowing how to use it. I didn’t know what his idea was. I gave him the program and left a satirical and beautiful statistical result as a commemoration of my second liquidation. . I don't like my teacher because he scored my MODELING very low, because he has never seen such a MODELING, but he is very curious. So I recommend my system to him, hoping that my system can explode his position.

In the next year, I lost my backbone, and I learned from a teacher to seek art. I have followed predecessors who did trend operations, because trends are extremely word-of-mouth and mass-based. I followed a senior who did quantitative operations, because he was able to verify that in the ultra-short period, he repeatedly operated at the inflection point. I have followed a senior who did not operate anything, because I can feel the existence of his energy, as long as I communicate with him, I seem to be able to be warmed.

Up to now, large and small operations have been performed no less than a thousand times. What makes me different from others is that almost every time I have the purpose of trying, summarizing, and verifying. From the perspective of the learning process, it can also be divided into three stages:

The first stage is growing for learning, which is the stage of learning. At most, there are 78 books on the table and on the floor. I have seen it all.

The second stage is the stage of daily loss for the sake of Tao, which is the stage of refining. The books on the table are put back into the bookcase one by one, and it is rare to flip through them again.

The third stage is loss and loss, which is to raise all experience to the stage of experience. I am only doing it, in the experience market, and summing up experience.

It was a funny, energetic and silly time. At the beginning of 2010, I came into contact with foreign exchange by chance. It was really late. I feel that this thing is much more fun than stocks. Two-way T+0, long can make money, short can also make money, buy at any time and sell at any time, 24-hour non-stop trading around the world from Monday to Friday, with a daily trading volume of 4 trillion US dollars, the liquidity is large enough, no one can control it There is no market, there is no so-called banker, fair trade, everyone eats according to their ability. And there is also a leverage of 50 to 400 times, which is equivalent to infinitely magnifying your principal. Now that I see so many advantages in the foreign exchange market, how can I stay out of it and must participate. So I hurried back to my hometown, got a Hong Kong and Macau passport, opened a foreign currency card at China Merchants Bank in Hong Kong, avoided the mainland's foreign exchange control, and facilitated deposits and withdrawals, and then opened a trading account on the FXCM official website in the United Kingdom. As soon as I got the account, I just dived in, isolated from the world, and spent more than ten hours a day, so busy that I couldn't get tired of it.

At the beginning, maybe it was the luck of the novice. Within a week, I made seven or eight hundred USD, which is equivalent to realizing a 15% profit relative to the principal. A perfect beginning, just like the beautiful encounter with your girlfriend. Then I count on the computer. 15% for a week, 50% for a month if you don’t say anything. In a year, 1.5 to the 12th power = 129.7 times! Let’s make a discount, let’s count it as 100 times. If I invest 100,000, it will be 10 million in one year, and 1 billion in two years. Making money is too fast and easy. If I knew what kind of factory I would open before, I begged my grandpa to sue my grandma all day long. People before and after are as busy as their grandsons, and they can't make much money in a year. How easy it is, look at the chart, click the mouse, and the dollars will flow into your pocket like water. After three to five years, you can retire early, go around the country, and do charity; Travel around the world, go to Wall Street from time to time to inspect and give guidance, and tell those gangsters that I have earned part of the money you lost. Extremely arrogant and outrageous. Don't laugh, that's what I thought at the time. Every novice who has just entered the market has thought this way, to varying degrees. When I fantasized about a wonderful retirement life in the future, the lessons came at once, and with fury. The monthly non-agricultural data came, but I didn't realize it, and I didn't even know that the market fluctuated so violently and irrationally before and after the release of some major data. The market seemed to be deliberately against me. As soon as I entered the market, the market went in the opposite direction. When I closed my position and exited the market, the market resumed its original trend, so I entered the market again, and the market immediately turned around again. After going in and out repeatedly like this, within an hour, not only the profits of the previous few days were wiped out, but also most of the principal was lost. The transactions in the next few days can be imagined. My mentality was completely out of balance, my emotions lost control, and I completely became a gambler. In less than 20 days, the position was liquidated. Looking back at that time now, ignorant people are fearless, heavy positions, no stop loss, frequent trading, the three most deadly mistakes were made by me, and I made them at the same time! And I was a novice at the time, even the basic meaning of a single K line I don’t understand the market psychology behind it, let alone moving averages, MACD, and other complicated indicators. Liquidation is inevitable, it's just a matter of time.