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Profit can't just be based on strategy, risk management is also very important, in the market traders are passive existence, we can't accurately predict what will happen next, we can't predict the ups and downs, the transaction itself has natural risks, if you ignore Risk only leads to loss. Even if you have the best trading tips, it’s useless. If you don’t do risk management, you will still be eliminated by the market. Since the outbreak of the epidemic, we can experience many risky events. It is really difficult to achieve profitability without doing prevention and control . And I think risk and benefit are actually a dialectical and unified relationship. Extreme risk control is to leave the market, and extreme income first is a shuttle. Most people who can cultivate have found a unique balance point between risks and benefits, and it is a dynamic balance. Which one is important depends on the situation. Sun Tzu once said, be invincible first, and wait for the enemy to be victorious (waiting for the enemy to have a loophole). In general, risk control comes first, and defense is done before attacking.
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Last updated: 08/24/2023 22:02
To make long-term stable profits, you need to have your own stable trading system. Real trading system = clear entry signal + dynamic but clear exit signal + clear position management + verified correct profit-loss ratio + multi-scale and multi-market backtest support.
Next, let’s talk about the secret of stable profitability:
1. Stable profit depends on a stable operation mode, and a stable operation mode determines that there are only a few stable operation methods. At the end of the Qing Dynasty and the beginning of the Republic of China, Guo Yunshen, a master of Xingyiquan, really existed. He only relied on half-step Bengquan and had never met an opponent in his life. Spokesperson.
2. Trading is nothing more than buying and selling. A stable operation mode is some stable and reliable action specifications for buying and selling that can beat others and defend themselves.
3. Stable buying mode, a few fixed buying points, buy when you arrive, don’t buy if you don’t, celebrate when you make a profit and wait for the take-profit signal, use the stable cut position mode to cut it if you lose, and then Do it next time. In the final analysis, it is just a sentence, sit on the sidelines and wait for the pie to fall from the sky.
4. Stable take-profit mode, take-profit in a fixed buy mode, the rules are a bit messy, it has something to do with the opponent's physique, the same punch in the opponent's face, the result will be the front teeth flying around or smashing into the brain Concussion, hard to say. But there can also be a general standard and range, such as not playing when you see blood, such as the end/reversal of a certain price/signal. Fix it as the end point of making money every time, and the extra money will not be made. The advantage of this mode is that I earn less this time, but I will not take the elevator next time, and it is still balanced in general. But because as long as it is a fixed buying point and then moves in the right direction, then it can be guaranteed that there will be a profit. After a long time, it will be the accumulation of compound interest.
The secret of stable profit is like this, it is these few limited and fixed trading points, find it, believe in it, execute it, and everything will be OK naturally.
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Last updated: 08/17/2023 08:44
What is the core secret of profitable trading? Or, what do you rely on to make money?
Seeing such a problem, many people may blurt out: Create a stable and profitable trading system by yourself!
I said this is bullshit! Based on my many years of trading experience, I believe that the profitability of trading does not depend on indicators, formulas, systems, fund management and risk control, but the most core and key is a person's concept and logical thinking. In this sense, to do business is to be a human being, and it is a process of self-cultivation.
From a novice to a top trader, you must go through the transformation of trading philosophy. The following are the 17 phased changes in trading philosophy that I have summed up after years of experience, and I share them for the subject’s reference. Topic, as long as you understand these advanced changes, you will not pursue any secrets of profitable trading. In other words, if there is a secret, who would share it with you so impartially? If a master really shared it, how could you easily believe it without doubting it? Isn't this an endless loop?
1. The first level doesn't know anything, a novice.
2. At the second level, after reading a few books and gaining some real experience, I have technical concepts in my mind.
3. The third level: start to summarize several key points, such as "trend", "capital management", "strict loss stop", "no heavy positions", "not scratching the head and tail"... This level is regarded as advanced Passed the first threshold for trading profits: graduated from kindergarten.
4. The fourth level: Start to fix the style, know to give up some opportunities, form your own style, give up some indicators, and only need a few standards.
5. The fifth level: Begin to discover that money management is very important. Study the knowledge of fund management and conduct position management.
6. The sixth level: I set some rules and regulations and style positioning for myself, and I began to realize that execution is very important. This level can be regarded as the second threshold: Congratulations on graduating from elementary school.
7. Gradually discover that forecasting is almost an impossible task, and begin to downplay forecasts and directions. It is found that observation is more important than prediction, and control is more important than analysis. Congratulations, you're a little enlightened—you're starting to judge the market with your own mind.
8. Slowly discover that each method and system has its own weaknesses and advantages, no longer seek to be right every time, no longer seek the perfect method, and try to find a system that suits your personality and ideological values. It went one step further.
9. Finally decided to give up subjective trading. It is a painful thing to give up years of tools, disk sense and experience—but you have to give up—because you find that subjective trading is too difficult to achieve discipline, consistency, and system. You should be ready to start building your own trading system. Congratulations, you have completed the key steps of not breaking and building, and you have graduated from junior high school!
10. You try to use your own experience and knowledge structure to build your own trading system. I started to be confused and found that trading turned out to be a comprehensive university question. I have figured out with psychology, philosophy, art of war, engineering control, etc., and even have the idea of leaving this market, brother, you finally know that there are too many things you don’t know, this is the beginning of your awakening!
11. You start to keep learning, looking for information, classic books, looking for articles on the Internet, looking for friends and teachers who can inspire you to re-analyze your previous experience and views, re-puzzle, and try to find your own way. Accumulation and learning are impossible. No, communication is very important. There are countless people supporting a successful person, so you must know how to be grateful and reward, no matter what you do!
12. You finally find an admirer, a master or an idol, or an idea. With this ideological system as the center, you start to build your own trading system. In this, you find that you used to have such a superficial understanding of increasing positions, fund management, probability, market knowledge, and this game. You find that your own tools and your own knowledge structure are so poor (it is very important to meet a good teacher or a good book that suits you at the right time at this stage, depending on fate, you can’t find it), and at the same time A time when you feel your confidence, your talent, your fortitude again. Brother, graduated from high school, take the college entrance examination!
13. The thirteenth level: At this time, you feel that you have a lot to say, but you can't say it. When you reread the classics, surprises often pop up in your heart, applause, and you constantly have new insights. When you face a novice, you feel that you have a lot to say, but you feel that you have nothing to tell him. When many things learned, the knowledge seems to start to integrate, brother, you passed the exam in freshman year.
14. The fourteenth level: You continue to accumulate, learn and select, start to build your own trading projects, and start to purchase various good parts to build your own "golden chariot"... Slowly you may build it yourself If you develop a practical trading system, you may also find that you "copy" other people's classic trading systems. In the process of operation, you gradually find that it is not very important to use that system. You deeply feel that your greatest wealth is not your trading system, but your mind, your thinking, your experience, and your quality. You will not even be stingy about making your trading system public, and you know that even if you make it public, maybe no one will believe it, and you will not insist on implementing it for a long time. Brother, you passed your sophomore exam.
15. The fifteenth level: You may start to compare different trading systems and find that they have something in common. In fact, successful systems are not so complicated, but they are all "simple and practical" and have their own profound thinking principles. Even you I deeply feel the beauty of which trading system, it is the same as art, pottery and bronzes of famous cars, but you are no longer arrogant, you deeply realize that what you don’t know is the whole sea, and you are just a small island. In the process you are constantly checking the transaction to improve and learn. Brother, you passed your junior exam.
16. The sixteenth level: You may start to discover some deficiencies in your system, but you will not feel that there are problems, and you will no longer demand perfection. You will start to realize that the market is invincible, and you will feel the risks of the market more deeply. Although you have made a lot of money this year, you have considered the risks of the market at a deeper level, and you are worried that the black swan will fly. You start trading not in one market but in multiple markets, and prepare for the once-in-a-century flood. Sir, you graduated from college! Congratulations!
17. The seventeenth level: Maybe at this time you continue to use your trading system, maybe at this time you turn into a value investor, maybe at this time you leave the market to do things you like to do but didn’t do when you were young, perhaps…………
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Last updated: 08/10/2023 07:01