Looking back at the current state, what is the biggest detour in your trading career?

Looking back, the biggest detour was actually reading!

You may not believe it, isn't reading and learning the fastest way to improve yourself?

It should be in other industries, but trading is a detour!

Trading is a practical subject, which cannot be completely covered by book knowledge, and many things must be understood by yourself!

The ancients said that "there is a house of gold in the book", so everyone plunged into the ocean of technical analysis to find the holy grail!

After reading a lot of books, it seems that I have learned a lot, but the trading is still a mess. In fact, I didn't even touch the door frame!

Speaking of the truth, it is clear and logical, but opening the account is horrible! Can you say it was the fault of reading the book? I can only ask the heavens in silence!

Jesse Livermore estimated that there were not many books to read in the era, and because of this, "Memoirs of a Stock Operator", which records his trading career, is regarded as the chief classic of trading books!

The reason is that Jesse's trading knowledge basically comes from market observation, not from reading books!

Remind everyone, I am not preaching "reading is useless" here, just a little insight!

Maybe detours must be taken, knowledge and experience will take time to accumulate, but the market is the best teacher, market observation and your experience are better than any book!

The pursuit of precise buying and selling points is the biggest detour.

Accepting the fact that the market fluctuates randomly, starting from capital management, aiming at risk control, so that risks are controllable, and profits are handed over to the market, it suddenly becomes clear, and I really understand the true meaning of cutting losses and letting profits run.

Think short-term is better than long-term;

Thought cleverness was better than wisdom;

Think skill beats time;

think oneself better than others;

think oneself is the center of the world;

Thinking the market will reverse;

Thinking that it will double in one month, ten times in a year, and 100 million in three years;

Thinking that others take you seriously, in fact, normal people love themselves more;

Thinking that others respect you, you can do whatever you want, in fact, you are doing your own crime

...

In order to hide his insignificance, he always does some exaggerated things, which is sad and ridiculous.

Plain, simple, stable, comfortable, live your life, isn’t it good?

Look in the mirror to recognize yourself, keep your eyes open and take a good look at the road. Many pits are visible, and no matter how bad you are, you won’t fall on your back.

Be a decent person!

Money, power, fame and fortune are external things, and being decent is the foundation of being a human being!

Standing on the top of the mountain and looking back at the way we came, no step is superfluous.

Today, I cleared the floating profit list that I had held for two months, and I plan to take a few days to rest and summarize. This year has been the best year I've ever done. There are several times the income. It's not much, but it proves one thing, my trading view has always been correct.

It is a very happy thing to constantly verify the truth and opinions. The moment I touch the truth is very calm, excited and calm in my heart. It's an amazing feeling. Looking at the transaction through the eyes of today, there is nothing special about it. The principles of trading apply to everything.

Trading is like climbing a mountain. Standing on the top of the mountain and looking back at the way you came, no step is superfluous. Those useless efforts that seemed to be wasteful steps at the time, now seem to be stones under our feet. The development of things is a spiral of twists and turns, mountain climbing is like this, and trading is also like this.

There are detours in the world, there is no straight road. The road up the mountain is also a detour, and there has never been a mountain that goes straight up and down.

After reading hundreds of books, which one is the most useful? Contribute the most to my growth? According to my feeling, Livermore's "Memoirs of a Stock Operator" and William Gann's "Time Cycle Theory" contributed the most to my growth. The weird thing about it is that I can't tell the difference without reading hundreds of other crap books. Every rubbish book is a stone that goes uphill under your feet. Every junk book has value, and no junk book is superfluous. When the waves and sand are exhausted, gold is found. Not a single wave is superfluous. For going up the mountain, detours do not exist at all, and it is still halfway up the mountain, because there are not enough detours.

I have used dozens of trading indicators, as long as I can find them on the Internet, I have studied them. I have designed many trading systems, so many that I have forgotten, there are thousands of them over the years. All lose money. There are hundreds of ways to lose money, but there is only one way to make money.

Traders have a misunderstanding in the early stage, thinking that the harder I work, the closer I am to success, but in fact the opposite is true. There are many genres and indicators in the market, and a thousand kinds of playing methods can be designed with just one moving average trading system. Let's do all the genres and indicators on the market again, and it will be possible if we live at least another five hundred years.

To venture into the rivers and lakes requires one's own weapons, and it would take at least a hundred years to learn all eighteen martial arts.

Generally speaking, wisdom comes from experience. Having experienced this, I generally have a certain understanding of this matter. This requires diligence. Research other indicators as much as possible to accumulate your own knowledge. Only in the end can we realize quantitative change to qualitative change and form wisdom.

The more indicators studied, the more accumulated knowledge, the easier it is to have the ability to distinguish. Based on my current feelings, I think a naked K can solve my weapon problem. My weapon is naked K, and my trading system is my routine.

In my opinion, all other indicators are rubbish, worthless rubbish. None of them are as easy to use as my current naked K. I think my naked K trading system is supreme. It is because I have spent many years choosing among many indicator models.

I remember that I studied the moving average trading system for one or two years, and spent a lot of time and energy, and finally achieved nothing. This does not mean that there is no value in studying the moving average. Knowing that this road will not work is its value. Every indicator that seemed full of confidence at the time but seemed useless in the future is forming the way up the mountain under the feet.

To tell a story, Edison tried to invent more than a thousand materials but failed. Either the lighting hours are unavailable, or not lit at all. Someone made fun of him, "Look, you have tried a thousand materials and failed."

Edison replied to him, "My success is knowing that there are a thousand kinds of materials that are not suitable for filaments of electric lamps."

Over 20 years of trading career, from amateur to full-time, from losing money to supporting a family, looking back, there are actually no detours, everything is necessary.

If you don't miss it, you won't know what's right;

If you have never been attached, you will not know when to let go;

If you have not gone through a detour, you will not know what is the right path.

detour 1, confused

I want to make any money, and I don’t want to miss a trend; at the beginning of trading, I was very firm about the method, which is the method of trend trading; but seeing so many varieties, gold, Europe and the United States, pound US, stock index, Japan and the United States,... Trends come and go, and I feel that there are opportunities and money everywhere; there is also a cycle, from one minute to four hours; how long is the cycle? How many varieties do you operate? These are very confusing; there are so many opportunities at any time, and finally realize that there are very few of them, and finally determine the cycle and variety. It took two years of various attempts in the middle, but fortunately, I found a cycle that suits me and variety.

Detour 2. Greed

Pursue a 100% high winning rate; in the seventh year of trading, I can finally achieve continuous profitability. But I encountered a new problem, that is, there are often long-term trends, holding a single for two weeks, and finally earning more than a dozen points. Although it is stable, it is slow and worrying. I feel that a lot of profitable trends have been wasted; and then I just want to The optimization method, and then added too many rules, the original simple transaction was complicated; the overall profit turned into a continuous loss, and later realized that over-optimization is a dead end, and it took another two years; now it is back to simplicity Idea + strictly implement the above.

Detour 3. Impulse

Often affected by human nature and emotions, impatient, controlled by instinct to operate impulsively. Only see the part, only see the details, fall into the details of the trend, and be led by the K-line to reverse back and forth. Just now it was a long position, but it was closed and reversed to a short position, and then reversed to a long position after a while ;Such a lot of small losses add up to a big loss; although I realized very early on that we must be rational, it took at least three or four years to gradually achieve rational operations. I believe this is the biggest problem for most novices, that is, they cannot keep calm. When your head is hot, that is the beginning of losses.

Detour 4. Misunderstanding

I used the correct trading system at the beginning, but I misunderstood the key rules in it. The terrible thing is that these mistakes make me profit and lose in the market from time to time! Therefore, trading performance is always erratic. Two years ago, I began to doubt myself whether I misunderstood the rules of the trend trading system, and then I thought about it many times before I corrected it. It's scary here, a wrong rule, let yourself be in chronic losses for five years. Therefore, I am very envious of those traders who have expert advice. Sometimes a key point that has troubled you for several years can be seen at a glance.

Summary: In fact, the transaction is very simple, but the process is very difficult. In fact, if you think about it carefully, every detour is not a detour. Everyone who can make a stable profit has gone through the process from simple to complex and finally back to simple. People often say that the unity of action and knowledge is exactly the same in trading. If the cognition is not in place, the behavior will be difficult to be in place, and the result is that it is difficult to make overall profits.

Most people have no talent for trading, and it is normal to take detours. Let me talk about the last detour- mental method . The difficulty of mentality is that most people cannot penetrate into their own hearts, but your core understanding of transactions in the subconscious mind really determines everything. If the cognition is not in place, no matter how good the technology is, it will not be able to make long-term profits. Conversely, with good cognition and slightly poorer technology, long-term profitability can be achieved. Technology is only the periphery, and mentality is the core. To sum it up, it is thinking along the trend. You have to understand that every time the main wave stagnates and enters an adjustment in the trend, there is a high probability that it is to prepare for the next higher main wave; if you understand this One point, then in actual operation, you will not be afraid of the reverse movement of the price and rush to close the position and harvest, or even reverse the direction. Ordinary people mostly have a thinking mode of accepting when they see good results. When they see some floating profits, they quickly find reasons to settle them down. This kind of cognition will make you make temporary profits and long-term losses.

Before you can't make a profit, all the roads you are taking are detours.

Trading is practice, and practice is the only criterion for testing the truth, so the stable profit of the account is the only criterion for testing the transaction.

Only when you walk out of the road and reach the destination, can you look back and know which detours are there? If you don't reach the destination, all the roads are self-righteous.

Looking back at the current state:

All the thoughts about trading are looking for the way, too much to find, and I don’t remember the scenery on the roadside, let alone where I left.

One is cognition. The market, trading, and itself, only when the three are integrated, can the transaction go smoothly.

Market awareness, including trading varieties, trading restrictions, platform rules, etc.

The cognition of trading, from the big two roads, there are successful people in both value and technology. Buffett and public fund managers basically follow this path. The technical school is the way of the turtle trading rules, which only pay attention to the rules of price fluctuations.

From my own perception, human beings are social animals, and human nature is even more different. Some are naturally tolerant, while others are naturally impatient. Not to mention life, family, business, how to coordinate well. How can you have time to do short-term when you go to work every day? Old and weak, how can I have the energy and response to do it within the day. There is no way, this is the aging brought by the years, and no one can solve it. The trading model must adapt to itself.

The second is definition. The most fundamental thing is the definition of the trend. What is the trend, a hundred people a hundred ways. Dow, wave, Granville, 123 breakthrough, etc. are all defining trends. To define by yourself, the key is that the standard should be clear and objective, and the second is that it can be practiced and verified. Only in this way can you know what state the market is in, what you are going to do, and which segment of the market you are going to do.

The third is execution. It is best to carry out historical backtesting for the system, which can avoid many problems, and if the result is positive, it is executed. Execution is really a strength. Frequent operations are more effective against execution. It is much more laborious to operate 5 times in 1 hour than 1 time in 5 hours.

The fourth is control. Trading deals with money, it is both money and numbers. You value it, it is money, and it represents everything it can buy, such as food, drink, food, housing, transportation, luxury cars and mansions. If you take it lightly, it's just a number. 10 yuan and 100,000 are both 10, but they represent different things and bring different feelings to people. It is not a bad thing to take a break when the funds exceed your own tolerance.

Looking back, are there any problems with some roads? have. Can it be profitable? It was not possible before, but now it is possible.

Many ideas have their own advantages and disadvantages, but they couldn't solve the disadvantages before, so they gave up. In fact, it can be used with minor changes, and it is quite easy to use, but it was not able to solve it at the time.

There are many paths to profit, none of which is free of traps. When I stepped into the trap, I thought the path would not work. well! If you don't go and change the road, you will waste all your time.

The trap of the moving average is that the price fluctuates around the moving average.

There are actually too many detours, but one has only been straightened out in recent years! It can be said that it has changed my entire trading career!

Looking back on the transaction, the biggest detour I encountered was:

I once regarded futures as a gamble!

It wasn't until a few years ago that I figured out that I would leave if I made a lot of money (and I wouldn't leave if I lost money), but I decided to keep going!

Investment should pursue a long-term result, not an immediate return like in a casino! (The meaning of this sentence is far from being as simple as you think)

Everyone is born with a gambling nature. For a period of time, he seized the bets that he thought had a high probability for a few times, and then gambled almost every time for a while, and then he couldn't bear the consequences of losing every bet!

As the saying goes, if you often walk by the river, you can't get your shoes wet. The more odd numbers you do, the more chances you will make mistakes. During that time, I was trading almost continuously, and I didn't stop to summarize the reasons for the loss or think about changing it. It is equivalent to not only losing money but also not learning anything in the end!

Looking back, I spent tens of thousands or even hundreds of thousands to learn how to gamble, which is better than giving the money to the casino directly!

Eighteen bends of the trading road!

1. Spending money to trade with people, thinking that trading technology can make money easily!

I signed up for various training courses. Since I didn't lose much at the beginning, I was reluctant to give up the expensive courses! I paid a bunch of cheap ones, and learned a lot! That time was also a mess! (However, the knowledge learned will be of great help to me in summarizing my trading system later!)

2. Take occasional profits as the norm!

I believe that many friends have also had the experience of making profits, but it was this profit-making experience that led me into a bigger misunderstanding! Take the previous profit as the normal state of profit, and feel that this is obtained by mastering the trading market and technology.

3. Unacceptable account losses!

If you don't admit it, you can't accept this matter, which leads to a bigger loss on the book!

4. Obsession is too deep!

Always think that I understand the market, refuse to admit mistakes, always "self-righteous", clinging to my own ideas! In the end, I found that the loss has nothing to do with these persistent market conditions!

5. Greed, Fear

I hope to make money "quickly and quickly", and finally find that this idea just meets the desire of the "futures casino".

The market just likes people like me!

A fluke mentality made me blow up my position! The mentality of a gambler just wants to make money! Thinking about these seemingly important things every day, but in fact they don't make any sense!

Some people have said: Our natural way of thinking does not match the market rules of transactions, and gamblers and casinos are even completely inverted, which means that "human nature" and "trading essence" are in conflict.

It's okay to savor it carefully!

If some problems are clarified as early as possible, maybe this road can go further!

Trading technique is not as important. Only relying on losses to reduce positions and close positions, and profits to increase and reload positions is enough to make a profit.

The biggest detour is that the trading is illogical, buy when you think it will rise, and sell if you think it will fall. There is no reliable logical support behind the transaction, and it is doomed to fail.

In addition, the position is too light when making a profit, and the position is too heavy when losing money. When you make a profit, you hold the position for too short a time, and you want to close the position immediately when you make a little profit;

In addition, if you can't stop the loss, it will lead to small losses turning into big losses.

The biggest detour is to optimize the trading system , and I have been doing this for more than two years.

The capital curve is like a roller coaster. Sometimes it doubles, and sometimes it returns to the original point, but it basically fluctuates in a box range, with no major progress and no loss.

Until one day, when I manually backtested my system in the history (note that it is not a machine backtest): I suddenly found that if I set the stop loss small, the number of stop losses will increase, and the number of transactions will also increase; The larger the loss, the fewer the number of stop losses, and the fewer the number of transactions; the smaller the stop loss is, the smaller the profit is, and the larger the stop loss is, the larger the profit will be.

I realized I was in an endless loop of optimizing my system.

So, I chose a small stop loss that I felt more comfortable with, and stopped.

Later, I didn't optimize any more.

As time went by, I gradually realized that it was not because I realized this correlation that I stopped, but it deepened my understanding of the same origin of profit and loss, and made up for this lack of knowledge in me to stop. .

I believe that everyone's cognition is different and their understanding of trading is different, so your weak points are also different.

Therefore, my words may be useful to a few colleagues, and most of them are probably just a first-time reading.

It is probably the three words "I think".

I started to do futures when I was a sophomore, because my major in college was investment, and I actually had some knowledge of futures, but it was all very basic. At that time, I made thousands of profits a day, and I was very happy. I can rely on this futures to support myself, but it didn’t take long, I still lost money, and I didn’t have much money. After that, I didn’t give up, and went to learn from some so-called call-out teachers, organize and summarize, and my university papers also Related to futures, until more than a year after graduation, I firmly believed that my method was not wrong.

When I was in college, I used the trading method of breaking through the triangle pattern. At that time, I thought it was very reasonable, and I also talked about this method with my later masters. I still think I am very powerful. Thinking about it now, thanks to the old man who didn't hit me, he said later that my level was too basic, but I realized it step by step.

The reason why I say this is because in the later contact, I raised several questions myself, but they were not easy to solve, and they were about the triangular state.

How to draw a triangle shape? At the beginning, I thought that I could draw subjectively at will. As long as it looks like a triangle, I can draw two lines to form a triangle. As for the burr in the middle, I used the confidence interval to convince myself. It is low-level.

Quantitative thinking is not formed, but only operated through the subjective randomness of "I think". Where is the beginning of the triangle, where is the formation, where is the breakthrough, and what method is used to close the position, etc. In fact, I do not have a systematic trading idea, but just look at the subjective drawing of the K-line graph. It's just self-deception, after all, I don't even have a precise definition.

Later, he asked me to learn turtle trading, and use the breakout of K high and low points in the last 20 days as the basis for opening and closing positions. Through this example, he told me that the basic trading strategy should have these basic elements. When is the beginning of this interval, defined by the turtles There are 20 candlesticks, so how is my triangle pattern defined? I am not sure. Since the intervals are not clearly defined, how can it be said that your breakthrough broke through that interval? It's like saying, I defeated Li Kui, why should I say that I defeated Li Kui? Didn't I defeat Li Gui? How do you define whether you hit Li Kui or Li Gui? You need to define it before you know your own level and what you should do in the future? If there is no skin left, how will the hair be attached?

However, it is such a "I feel", it took me many years to realize that I am actually in the "I feel". And after that, how many years will it take to let yourself out of "I feel"? This is too difficult.

It took so many years just to realize that I am subjective. It is even more difficult to use a good method to make myself walk a path that is "not what I think".

That's why a lot of people ask me, "Do you make deals?"

I said, "I'm a staff member, I don't do business, I'm just a business solicitor."

Because the road of trading is too difficult, I really dare not say that I am doing trading.

After all, what is doing a deal?

Is placing a few orders called a transaction? Is losing a few years counted as a transaction? Or I once made a profit of 100 million yuan, and then lost only 5,000 yuan, so it counts as a transaction?

I was too insignificant on the way of trading. It took me so many years to realize that I was subjective, but at that time I thought I was very scientific. It is really "I don't know the true face of Lushan Mountain, only because I am in this mountain".

Therefore, the subjectivity of the three words "I think" is really the biggest detour in my trading career. It makes me lazy, instead of delving into the scientific reasons, but using the "sense of the disk" to fool myself, just like when I draw a triangle, I use the confidence interval to eliminate burrs, and use the sense of the disk to draw a convergent triangle. Focus on the drawing method that is accurate to the details, and don't go into the details of when the triangle shape interval starts and ends, etc.

Therefore, what "I think" really brings out is not the disadvantage of subjective trading, but that traders have not broken the casserole to ask the bottom line and explore the spirit of scientific truth . Own.

My personal experience and the detours I have traveled are impressive.

1. The small transaction period (such as the market below the 1-hour line) ignores the cost of slippage. The transaction cost for one year is half of the principal. If you do not backtest and record in detail for each transaction, it is difficult for you to find this loophole sharp. If it weren't for quantitative backtesting, I might have to delay it for a few years.

2. Distressed by too many strategies. For a period of time, I had a lot of inspiration and frequently updated strategies. I wanted to do a long strategy combination, but the position was too heavy (more than 80% in daily life). , The most important thing to control the retracement is the position.

In order to satisfy curiosity, value investment, medium and long-term trend tracking, short-term, intraday, speculation, and high frequency have all been studied, and I understand their profit principles. The key to choosing which one is suitable for my own trading habits, I realized Strategies do not need to complement each other, the important thing is to give play to strengths and maximize expectations within the acceptable range of retracement. Therefore, the highest leverage is reduced, and one strategy is mainly used, leaving only 1/20 of the funds for other strategy entertainment.

My advantage is that I think about the strategy from the very beginning, and then implement it 100% according to the plan. I have never placed random orders, and I have always been able to hold profitable orders, and I can also hold loss orders that have not touched the stop loss. That is, strong execution and good self-reflection and summary.

The above are just the detours I have taken. In fact, different people have many different detours.

• Why is it difficult to succeed in trading?

Lack of a clear method , ambiguous entry and exit signals, and complicated backtesting, so I don’t want to test anymore. There is little historical verification, and I haven’t counted my winning rate, profit-loss ratio, and capital curve. I can’t see my own loopholes and can’t make a suitable one Policy adjustments.

It takes a long time to evaluate whether the strategy is effective if you can't find a countermeasure , make a wrong decision, and trade multiple times, not depending on which one succeeds or fails. Large losses may happen occasionally, but this is the right trade because it may have little impact in the long run. Small take profit often occurs, but this may be a wrong transaction, because it may bring greater transaction costs in the long run, and the harm outweighs the benefit. In short, we need to look at the long-term impact to avoid attribution errors.

The psychology of getting rich , there is a saying: The only way to relieve worries is to get rich quickly. All kinds of myths of getting rich promoted in the market, please enter the urn. Only a few people in the market can make long-term profits. They also make money. Many people will choose short-term windfall profits, but windfall profits are short-term and imply high risks. However, those with bare feet are not afraid of wearing shoes, and those with little money are usually willing to take risks, and are used to short-term heavy positions. It is true that someone can make the first pot of gold. This is suitable for experienced veterans who have been ravaged by the market for a long time and have not changed their methods for ten years, and finally landed. And more people are just cannon fodder, losing the courage and funds to fight.

• How did the ups and downs of the curve come about? (Under the premise that the strategy is positive)

Method 1. Single variety and heavy positions. If you only do a few varieties, the correlation may be relatively high, and the position of a single variety exceeds 30%. In the trend strategy, when encountering a retracement period, the capital curve will be as fast as a waterfall whereabouts.

Method 2: Increase the position too quickly. For example, as long as the account makes money today, increase the position, and gain huge profits in a short period of time, the market may tend to the end and enter a wide range of fluctuations, resulting in larger stop losses and frequent stop losses. This is actually an unreasonable position and frequency of adding positions, and the capital curve changes too fast.

Method 3: The funds are embezzled, and the funds are used in other places temporarily, and the trading signal is missed, and the losses that should be lost are not lost, and the profits that should be earned are not earned. There is no distinction between trading funds and daily funds, and preparations for accidents.

Solution: There is a maximum limit on the total leverage used (such as 2 times), multi-variety dispersion, single-species small positions (usually 0.05-0.1 times leverage, that is, 0.5%-1% position), purpose: not because of a certain variety The long-term sharp retracement will affect the overall return. To increase positions, you need to get a profit of more than 25% before doing it. If the range is too small, it will not be able to play the role of spreading out the market. After all, the lowest point and the highest point are rare. The account funds are earmarked for special purposes, and at least there must be a relatively stable amount of funds.

What about the steep ascent? Especially after taking measures to slow down the decline, can it still rise steeply? Yes, but you also need to look at the market. After all, the market is big and small every year, and you can only look at the ocean and sigh for the varieties that have not covered the big market. In actual trading, it is more difficult for small funds to achieve low drawdown due to the uneven distribution of trading varieties, and the situation of funds being embezzled abounds. Survival is not easy when the big waves wash away the sand. Sometimes it depends on luck. When encountering a favorable market, you can survive Come, or time will wear it out.

Supplement: Under the premise that the strategy has negative expectations, how did the curve with ups and downs come about?

There are various reasons. In addition to the above reasons, the trading cycle is small, the signal is frequent, the cost is too high, and the profit cannot keep up with the cost. I won't talk about random trading without a strategy.

Looking back, there are 2 detours:

1. Pursuit of perfection:

①Do not want to let go of any market

②I want to make a callback with a small stop loss, but I don’t want to miss the big market

③I always want to find a strategy with better effects, and keep throwing away the holy grail from the waste of martial arts, and then find that the one who hit the face and hugged it was the chamber pot

...

2. Pursue certainty:

①Moving linepattern rend line aked KmacdBollinger bands ime-sharing charthandicap rading volumefundamental analysisspeculation... which one is the most reliable?

②Which one is a real breakthrough and which one is a false breakthrough?

③ How to predict the volatile market in advance, and is there a deterministic judgment method?

④ Do you want to stop losing 3 times in a row?

⑤Is it appropriate to use 10% or 20% for positions?

⑥ Is it better to have a single moving average or a double moving average?

⑦How to define the trend? Is it better to be sensitive or dull?

...

After unraveling all the answers, the final insight is that the transaction cannot be taken for granted, and it is impossible not to let go of a penny. There is only one answer like physics. It is more like music or writing. It has various forms but does not deviate from the theme. The way to profit is not a single-plank bridge.

Are there any detours in your trading career? ? ?

I am grateful for all the detours I have taken before, and looking back now, these detours are my precious wealth.

How do you know which road is the "right way" if you don't walk through all these detours?

Do you think that you can avoid detours if you get the guidance of a certain expert or master?

I can only answer you: too young, too simple.

Maybe you can walk less, but it doesn't mean you don't need to walk.

Russia has a ready-made path to refer to, why did Chairman Mao want to explore our own path? ?

Only by practicing the road yourself can you truly be "familiar with the road".

All the gifts in life are secretly priced, and there will be no less steps on the road that you should take.

In my personal opinion, there is no such thing as a detour in trading. All the detours you think are actually the only way you must go through in your trading career!

I think the biggest mistake is wasting too much time and energy on short-term trading. For the first 7-8 years of my career, I was indulging in short-term trading. The so-called emphasizing stop loss, and the so-called sense of disk, wasted a lot of time.

I am not saying that short-term trading is not possible, but its limitations are too strong, and it is basically impossible to achieve rapid wealth accumulation. On the contrary, a huge amount of commission is created for the broker. The understanding of transactions has basically stagnated in the previous year or two.

This habit will lead to basically not getting big profits in the face of some particularly large market prices in the future. This is a flaw.

It is recommended to take a look at "The Realm of Clarity" written by Mr. Qing Ze, in which I legislate for the market, and believe in it, it can be said to be enlightening, and I have benefited a lot.

Let me write down what I have realized——

• trading mentality

The problem of mentality, I think, is ultimately caused by people's instinct of seeking advantages and avoiding disadvantages and distrust of their own methods.

This problem is also easy to solve: Believe, believe in your own method in a faith-like way, only if you believe can you implement it, and only when you strictly implement it will you have the desired results, so just believe.

• Trading System

To put it simply, trading is nothing more than buying and selling, and the trading system is the embodiment of buying and selling.

The first step in building a trading system is to have a method. I know that many people say that there is no method, and they don’t know how to trade stocks. Don’t worry, there are really many ways to make money in the stock market, but few people have the patience to discover it.

Once you have a method, follow the instructions of the method to buy and sell, and strictly implement it.

The second step is to maintain consistency. Only by maintaining the consistency of buying and selling in each transaction can you detect mistakes in time. If the conditions of each transaction are different, the reasons for losses will become confusing.

The third step is market verification, which is also the most important step to believe in the method. Practice and time verify the truth. Whether a method is reliable or not can only be known by trying it in the market. A complete market test needs at least 10 times, 10 times Finally, the method with positive income in the end is the best method.

Don't use real money to try, just use simulated stock trading, and try again after verifying the method. At that time, as long as the method is strictly implemented, the effect will not be different from the simulation.

The fourth step is fund management (it can also be said to be risk management). Whether it is a full position or a floating profit to increase the position, the benevolent sees the benevolent and the wise sees the wisdom. According to your own method, you have the most suitable plan. You must practice and formulate your own The method of fund management should not be used rigidly.

• trading philosophy

My trading philosophy has only three words: Faith leads to spirit. These three words are derived from Master Qingze’s "The Realm of Clarity". Master Qingze has been engaged in futures trading for dozens of years and is a work of enlightenment. I don’t understand what I said above. After reading this book, you should also understand.

Let me list a few common pitfalls.

1. Martin class strategy

This kind of thing is bound to die when it encounters a black swan. Someone told me that the fluctuation range of foreign exchange is fixed, so it may be positive expectation in this case. But this is obviously unreasonable. Once an extreme market occurs, you will be lucky to jump off the building.

So recently I saw several bigwigs who won prizes in the futures competition actually use Martin. I can only wish them good luck. I hope that the money earned by luck will not be lost by strength.

Let me add that about Martin, a fact that can be easily proved mathematically is that as long as the time is long enough, Martin will inevitably lose his position. This is common sense that any student with a slight background in science and engineering must know (Shenma, you say you don’t know? Your probability theory teacher may be pissed off).

2. Stop Loss and Take Profit

If it's just a few points of stop loss in a simple sense, it's obviously unreasonable. And in the long run, this is an act of stabilizing a point difference plus a loss handling fee...

The appearance must be that you think the market will go to the other side. Of course, according to the degree of strength, you can decide whether to open a position in the opposite direction

3. "The market is unpredictable" This is a sinkhole, I think the market is predictable.

Those who firmly believe in the market invalidity hypothesis should know that your transaction is a speculation that loses handling fees in the long run.

So either you can make money because you have a certain ability to predict this market, or you haven't traded enough and you haven't had time to lose money.

4. The more complex the strategy, the better

Although it has to be admitted that there are some particularly complex strategies that are extremely profitable because of their clear logic. But for now, the strategies that will make me money are extremely simple...

5.Never take the market order when you know the price is cheap.

The reason is simple, since you know what price is right, then you should trade at this price. If you don't know, may I ask Ningpei to make a deal?

6. Big number laws and central limitation theory really work～

All the problems in trading are solved step by step. From the beginning to the end, what I insist on the most is to strictly stop loss. Then there are detours one by one, which I think are quite big.

1. Want to grasp more market conditions, high-frequency short-term short-term trading, exhausted, with little gain.

2. In large-cycle heavy position operations, the stop loss will become larger, and the principal will be withdrawn quickly when encountering a bad market.

3. Suspect the operating system when encountering continuous stop losses, and frequently improve the system.

4. If you have not reached the stop profit position, you are afraid of profit loss and take profit manually.

5. Long and short orders are switched back and forth without stopping, and when encountering large shocks, they are beaten back and forth.

This is like the process of upgrading and fighting monsters all the way, you have to go through it and not be swallowed by the market before you can see the light.

Biggest detour: frequent transactions.

The strategy adopted will generate signals every day. Because I am afraid of missing the market, I don’t think there is anything wrong. I have been doing it for three years and have been losing money.

Recently, I adjusted my strategy and reduced the frequency of opening positions on Mondays. After reviewing the previous transactions, I found out that I can make a profit. I am really dumbfounded. The harder I trade, the faster I die!

The importance of logical tools was neglected for a long time in the early years.

For example, the reason why I want to study and listen to the content of looking for advantageous entry points is that I didn’t stop to think about the logic inside: every time and every point there is a pair of traders with opposite trading directions, and both parties Self-righteous thinking that they are smarter than the other person.