How to avoid frequent transactions?

Who is trading frequently?

    The foreign exchange market can be empty or full, open orders at any time and leave at any time. The most amazing thing is that the leverage is still so high (there was a slogan on the platform before that was called "Ten Dollar Foreign Exchange Speculation"). Compatriots who have been abused by big A shares for N years before playing for the first time, most of them will have the surprise of discovering the new world. All the leeks have an illusion that the N+1 of A shares and the fact that they can only go long and not short sell have led to losses for retail investors. However, after entering the magical foreign exchange market, the two-way 24-hour continuous trading did not let the retail investors out of the sea of ​​suffering. On the contrary, because there were no restrictions, the leeks fell into the trap of frequent trading, and it was even more enjoyable to chase the rise and kill the fall.

The dangers of frequent trading?

    Trading is like something, and it must not be frequent, as it will hurt your body and wallet if you do it too often. Trading with leverage is a very risky speculative behavior. Every time you open an order, there is a high possibility that you will lose all your money. Therefore, a reasonable transaction record must only have a limited number of transactions. If there are dozens or even dozens of transactions in your transaction records every day, you are destined to liquidate your position and leave sooner or later.

How to avoid frequent transactions?

    First: You must have clear and fixed trading signals. Speculation, you must play by ear, no matter whether you rely on any standard to enter the market, this kind of entry signal will certainly not be common, which is determined by materialism. Because there is only one starting point for a wave of market prices, it will not always appear. If you can strictly implement your trading signals, you will not trade too frequently. Trading signals include entry, exit, and stop loss signals, which must be clear and fixed. The important thing is that you strictly implement them. Of course, if you're trading by gut feeling, it doesn't make sense.

   Second: Properly extend your trading cycle. If you trade on the daily line, you may only find good opportunities four or five times a month. If you trade on the weekly line, you may only find good opportunities a few times a year, but if you trade on the five-minute line, there will always be trading opportunities in front of you. . In fact, most of the trading signals given by the small cycle pattern cannot last for a long time. You must broaden your horizons, use the long-term cycle to find trading opportunities, and at the same time use the small-cycle pattern to find precise entry points, so that you can filter out many trading signals that seem to be good but are actually pits.

    Third: Stop when the time is right. When you lose a few orders, or make a lot of profits in a few orders, your mind is likely to be very restless, and it is very easy to enter into retaliatory trading and cannot extricate yourself. So you must set an appropriate stop line for yourself. When you have a large loss, immediately force yourself to stop trading. After calming down for a few days, when your profit reaches a certain percentage, you should also stop and take out the profit. Go cool for a while, and wait for the excitement to pass before entering the market to look for opportunities.

    Fourth: Act like a sniper. In speculative trading, you don't have to keep an eye on the direction of the enemy like a sentinel on the battlefield. As long as you don't open a position, you are absolutely safe and no one can hurt you. And you have to be like a sniper, get out of the fierce and stalemate battlefield (trend-free oscillating market), lurk leisurely, and be ready when and where important targets (big market) may appear (trading varieties) Once the bullet (principal) and the target (trading signal) appear, shoot immediately (open the position). If the target is hit (the market moves quickly in the direction you opened the position), you will take your order. If you snipe If you fail, leave the battlefield immediately (stop loss). Snipers don't shoot regular minions, and you don't have to react to the frequent trade signals that pop up on the five-minute line.

Anyone who has participated in trading will be familiar with over-trading. Simply put, over-trading refers to the behavior of trading too frequently. Most people over-trade because they are eager to make money, and they have to increase their positions and trade frequently in order to return their capital as soon as possible and achieve their goals quickly. They even don't believe in the market, insisting that they are right to prove their abilities, and only realize that they are wrong when they keep spending money and finally lose all their money.

　　Those who are prone to overtrading are often those friends who have just entered the market. Their enthusiasm for the market is high, and they are afraid of missing the opportunity to make money. Driven by self-consciousness, they only want to return their capital and invest more and more in each transaction. , greatly increased the position, and finally ended in a loss.

　　In fact, over-trading has never been the most effective way, but the fastest way to burn money. Of course, not all frequent operations are "over-trading", only impulsive, no-advantage transactions are over-trading. So now the editor will teach you how to effectively prevent excessive trading and avoid getting deeper and deeper!

　　Number one: plan your week ahead

　　Pre-planning your week is one of the best ways to avoid overtrading. If something worth doing comes along, you will know that you are not making impulsive decisions but acting according to the plan. In the long run, not only will your trading improve, but your stress and anxiety will also drop significantly. Instead of chasing setups all week, just sit there and wait for quality setups to materialize, that's the wait-and-see approach.

　　Number two: Never trade for a day

　　Trading is not a 9 to 5 job, and trading all day is not going to bring you more money. Trading requires you to use a lot of spare time to study offline. Moreover, trading is not something you can do well if you spend a lot of time or your needs are very urgent. So choose your most efficient time of day to trade.

　　Third: Set the upper limit of the daily profit and loss ratio

　　The purpose of trading is to make a profit, not to preserve the investment capital. Therefore, when the loss reaches the limit value, exit the transaction quickly. The reason for setting a limit on profit is that if you continue to trade, the market may get back part of the profit. This is why you must set limits based on your historical trading results.

　　Fourth: Reduce transaction setting items

　　If you accept any trade setup, you will face countless trading opportunities every day. People who have the ability to trade continuously every day, but most traders actually have a hard time trading all day, so it is best to focus on a few settings, which will also prevent overtrading.

　　Fifth: Reduce the time spent observing filter tools

　　The filter tool based on your trading criteria is really useful to help you find the best trading opportunities.

　　But if you stare at your screens and filters for too long, watching the market go up and down, you might suddenly decide to enter a trade. That's a kind of market psychology, because you start to feel like you're missing something. At this time, relying too much on filtering tools has the opposite effect.

　　Sixth: Set a weekly transaction limit

　　At the beginning of each week, give yourself a set limit of 2-3. Once you reach your limit, you must stop trading until the new week begins. You can use any number you like. However, I would advise you not to exceed 3 settings per week.

　　Many traders treat trading as a profession and a mission, and there is nothing wrong with that! But if you feel that you have to participate in trading every day, or even indulge in the so-called trading opportunities every moment, it is a big mistake.

　　Overtrading is the most common and costly bad habit among forex traders, and to prevent themselves from falling into this situation, traders should exercise a kind of restraint at all times. The more successful the previous transaction was, the more cautious you should be about your next transaction.

　　Trading is a fascinating game. If you want to win in this game, you must not indulge in it and over-trade. Instead, we must always maintain rationality and restraint. Abide by discipline and norms, strictly implement the trading plan in accordance with the trading system, and persevere for a long time, and what belongs to you will eventually come.

It is human nature, trading is a game of human nature, but no matter how powerful a master is, he will make mistakes at a certain period or stage, so to establish a complete trading system and a trading system that suits you, first ask yourself, what do I want to do in the future? Whether you can survive in this market, because only by living well can you really earn money, not how much you earn today, whether you can survive when a big black swan event comes. Why is it easy for large institutions to make money? It is simply because of the large amount of funds. What about our small institutions? It is impossible for us to have so much money, so we must take a small position, and then use a whole set of systems to continuously regulate and control. The first or the next few may not make money or even lose, but can I be at the bottom or the top? How about earning back from the list? In fact, there are many ways, and when a person is confused, he must not do it alone, jump out and think about it.

I trade frequently, but how many lots and how many orders there will be can be calculated completely.

There is no 100% of any technology and indicators, only rules + formulas + compound interest

I have done in-depth research on this, why do I trade frequently!

The main reason is that the trading variety is too single. For example, if you only look at gold and do short-term trading, you try to have the opportunity to enter the market every day, so you will definitely be frequent, so it is definitely not a good thing to only look at one variety. This is single and not specific! The real focus is to focus on a system, or a signal, not a variety. If you don’t believe it, you stare at gold every day. If you don’t have a signal, you will imagine a signal to enter the market, and you will find yourself in a dilemma when you enter! Because it is impossible for a variety to have a signal to enter the market every day, even if there is, how comprehensive technology do you need to see every reversal? It's not bad to enter the market once a week in such a one-and-a-half way of opening and closing the trend!

Why should this be avoided?

A mature trader goes through three stages

1. Any market is an entry point, any market can make money, the trading frequency is high, there are big losses and big profits, I am very excited, and may even make profits continuously for a period of time, I start to worship myself blindly, feeling that I am too powerful, The days of lying down and earning money at home are coming, and every day I imagine a house, a car, a woman, and I will own it soon;

2. The reality slaps you very quickly, you start to wake up, start to regret, then reflect, and even doubt yourself; and when the people around you don’t understand you, you may feel that the world has abandoned you, it seems that only the computer The upper red and green K lines will never leave you, and even keep calling you "Come on, baby" with your thoughts. At this time, there are two situations: first, you may leave the market because of fear , thinking that he is not suitable for this market (I even met one of my junior high school classmates and said to me that through this incident, let him clearly realize that he is not worthy of being a rich person...) The second type of person thinks that he is It is necessary to regroup, continue to study, study hard, and start again. After that, the trading frequency has temporarily dropped, and while studying and researching, trading and verifying the learning results.

Generally, the first two stages will be repeated, with more trading comments for a period of time and less for a period of time.

Trading is a process of boiling traditional Chinese medicine. Every participant is a medicine. In the end, whether you get rid of the scum or the remaining essence depends on yourself.

3. The third stage is basically that you have your own trading system. At this stage, the trading frequency is relatively low. Even if you increase the trading frequency, you don’t know how to increase it, because at this stage you have learned something in the early training process Under such circumstances, the probability of profit is the greatest. You will only do things that conform to your trading system, or you can only understand the market you can understand, and don’t do what you don’t understand. Your trading style will be more stable.

Frequent trading is not the original sin, the real problem is trading dominated by emotions. If you are an intraday trader at Goldman Sachs, trading according to the established plan, can it be the same as the trading that you are terrified of when you see intraday fluctuations? The core problem of the little leeks is that they do not have correct values ​​and stable trading plans. This requires long-term loss training. Take me for example. My core logic in stock investment is good business. If you monopolize a business, you will get much higher returns than the average social inflation. As long as it is a good business, you can take advantage of the fluctuations in it, but you cannot be intimidated and lured by it. Such logic naturally reduces the transaction frequency.

Create trading rules and stick to your execution. easy to say, hard to do. It is recommended to increase the cycle

To put it bluntly, you have lost so much money and you still don't know why you lost money. Or if you lose money, you know the reason and keep jumping up! Who do you think can save you, you may be like chopping your hands.

In other words, you subconsciously put gambling and making money together. Trading is not gambling, nor does it mean that you can get more by doing more

Luck is needed, mentality is needed, and self-discipline is more important.

I have seen too many people who lose money in all kinds of ways. There are not many people who can really wake up completely. If you want me to say that if you really can't control it, don't enter the market again. It's not good for you, thanks a lot

Channel trading is not necessarily a bad thing. Some people are good at long-term trading, some are good at intraday trading, and some people can still make a lot of money by watching one-minute charts, fast in and fast out! There is no high or low way of trading! Find what works for you!

The trading mechanism of foreign exchange is to allow you to trade frequently. The only way is not to think about how much you can earn from the next order, but to think about losing another meal if you lose money. Also, don’t log in to your account if you have nothing to do, just look at the market. up!

Do fundamentals without money? I personally think that doing fundamentals means not paying attention to the point of buying. For example, if the fundamentals are bullish, you will directly enter the market to go long, and if the market retreats, you will increase your position. And even if you are doing fundamentals, it is best to match technology, and you can find better entry points. Want to make money but don't want to study? I also want to, but I want to succeed without hard work, maybe? If you want to avoid frequent trading, you need to learn, and you can get rid of it by forming your own trading system.

If you value the fundamentals, you must grasp the timing of the transaction.

The start of the market is often sudden. One is to plan in advance, and the other is to be able to open positions immediately after the start. The layout in advance depends on one's grasp of the timing, and the overnight interest rate is quite high in the right direction for varieties with market conditions. To be aware of the sudden start of the market, you must either place an order or a program reminder. After all, I am very slow to watch the market 24 hours a day.

Do you not have your own system? Your subjective transaction is not easy to deal with.

do band

This question can be answered from two angles.

First, you must understand the root cause of frequent trading errors. Many people think that intraday trading must be frequent trading. In fact, it is not necessarily true. Intraday trading is actually just overnight, but there is no problem with trading. It is closed on the same day and the feedback is fast. , and can avoid the risk of a sharp jump the next day. So what is frequent trading? In the short term, especially during the day, frequent entry and exit is very harmful. Let alone whether your trading method is positive expectation value, even a good system has a drawdown, yes It twists and turns upward, but the transaction cost, frequent entry and exit means that you are constantly paying handling fees and spread fees. This is a downward curve that will not retrace. The more frequent it becomes, the steeper it will eventually be. If you lose more profit, you will lose money, and you will lose money steadily.

The second type of frequent traders is the kind of people who have no fixed rules. They look at the market and are full of opportunities. Things are going on, just to be on the safe side, let's go out, back and forth, in and out, and eventually it must end in a liquidation. If this is the case, it is better to find a stable trading system first, or establish a rule of entry and exit first. Let your entry and exit be consistent.

Frequent trading is nothing more than impetuous people, wanting to get feedback quickly, calm down, extend the cycle, and less trading times may achieve unexpected results.

Are you satisfied with this answer?

The easiest way is to amplify your trading level.

To accurately identify market trends and market structures, you must understand where this wave of trends can reach...

Here is a list for your reference:

The trading system is not perfect, why are technical analysis, Gann theory, and wave theory not credible? ! Why can't I understand K-line language? Basic analysis is also important, but it must be reflected on the K-line in the end. And sometimes very slow to respond.

The fundamental reason for frequent trading is that there is no perfect trading system, lack of eyes, and lack of self-confidence.

A complete trading system, including trading philosophy, trading philosophy, entry signals, exit signals, analysis methods, trading strategies, risk control, position management, time management, trading discipline, mentality management, interpretation of market news and economic indicators, analysis of main positions etc.

You are clear about all these, even if you were impulsive when you entered the venue, you didn’t see it clearly. It can also be dealt with in a timely manner after calm analysis. With a well-thought-out plan, you can follow your heart without overstepping the rules. To achieve this state or to trade frequently is a matter of mentality and the weakness of human nature. For deterministic profits, you choose to settle for peace of mind, and for uncertain losses, you always hope to get back your money.

​Pay more attention to my other answers and circles, and grow together together. I now have a complete trading system and understand everything, but I do what I want, and I don’t do it without breaking the rules. It is also necessary to strengthen trading discipline.

Successful traders always keep two eyes open, one looking at the market and the other always looking at themselves. At any time, the biggest enemy is yourself. Correcting yourself is always more important than observing the market.

Work on controlling yourself! The importance of psychological control and behavior control cannot be overemphasized. As long as you can pass this level, you will be half successful. If you can’t do this, it’s useless to do the other parts well.

To be successful, you must first have the ability to control your behavior. If you can't do this, no one can help you. It is also impossible to take this last half step. A question of knowing and doing. Let me put it more seriously: In fact, the reason is still half-understood. Ignorance and fearlessness are impossible; half-knowledge is difficult; true knowledge is to integrate with the market as much as possible and understand the market from your own perspective, which is easy.

Frequent transactions are not to be avoided, but can be resolved completely subjectively.

Set a profit and loss target every day. After the profit and loss reach the preset range, leave the market decisively and develop a good habit. Don’t make a profit and want to make more. If you lose, you must make it back on the same day. Without these two situations, there will basically be no frequent transactions​