If you have a bad mentality, does this mean that you are not suitable for trading?

The mentality is not good, and the root cause of the inability to execute is that the ability is not enough, and it is not strong enough to make oneself believe. For example, if 1+1 kills you, you will believe that it is equal to 2, because you are already strong enough for the mathematical ability of 1+1=2, and the internal reason why you cannot implement it is that you are guilty, hesitant, and not firm. These are all reasons for insufficient internal strength. A bad mentality is a part of human nature, and the mentality can be improved with powerful abilities. So the only solution is to delve into the trading system you use, so that your trading system has no dead ends, and to achieve the belief of 1+1=2, the execution power will definitely produce a qualitative leap.
Many technical traders are always annoyed: "The order I made, the probability is really high, the up and down are profitable, and I can make a stable profit of tens or hundreds of dollars almost every day. It is only the last order, and there is no stop loss, which leads to the explosion. If I can strictly stop the loss, I will definitely be able to make a stable profit.” But the next time they come back, they will copy the exact same liquidation pattern, so they always complain that they have a poor mentality and cannot stop the loss resolutely, which makes them unable to make money. In fact, this is evasion, and they are unwilling to face it every time It is human nature to blame one's own mistakes on a bad mentality. I am always unwilling to admit that my technical ability is not enough, and I will always fill myself up, unable to learn from an empty cup, and let myself go to a higher place.
There are not a few such investors. In fact, there are so many ifs. If it is true that every time the loss is stopped, I am afraid that I will lose all confidence. In fact, the high probabilities made by these people are all out of deadly resistance, which is the majority of small profit orders made by not stopping losses. If it is really like what they said, "If I stop the loss at that time, I will definitely be able to make a stable profit." If you don't do such a certain thing, you will be a fool. There is such a friend, I suggest him to be serious and strict. I tried stop loss once, but the result was stop loss frequently. No matter how difficult it is to make a high probability, I complained angrily. Many orders should not stop loss, and they can all be profitable. The trend I see is correct. At this time He also attributed the problem to the fact that the loss should not be stopped, but the day before he was still resentful that if he insisted on stopping the loss, he would be able to make stable profits.....
In fact, the root cause of their inability to strictly stop losses is that they dare not stop losses. If they strictly stop losses, the result is that they will always be stopped, slapped in the face, and there is no high probability of doing it at all. In fact, this is the reason why the technical ability is not strong. , Can't find a good entry point, and can't find a proper stop loss point. In order to avoid frequent stop loss and blow to confidence, I simply carry it to my death, resist every time I lose money, and run away with a small profit after carrying it back, so the seemingly high-probability profit is actually very poor in quality, and the position is completely liquidated once. Even if you earn dozens of orders, it is not enough to lose one order. So I would like to remind everyone here that trading should not only be about probability, but also take into account the profit-loss ratio. If you only pay attention to whether the probability is high or not, you may suffer even worse losses! And only investors with strong technical ability are qualified to talk about stop loss. If you are not capable enough, the stop loss point you find out is wrong, so stop loss is wrong no matter what, and frequent stop loss is easy to induce yourself to die. Earn dozens of orders, and one order will blow up your position. Therefore, investors with insufficient ability are not qualified to talk about whether their mentality is good or not. Even if you are born with a good mentality, you will have a poor mentality due to lack of ability.
In fact, in trading, running away is not cowardice, let alone stupidity. On the contrary, only those who know how to run away are likely to survive. The better a person is at running away, the more likely he is to succeed. In the face of a market that is contrary to our expectations, it is the best policy to run away and stop losses in time. The market will not be diverted by anyone's will, and resistance to the market will only result in a bruised nose and a swollen face. Only when the green hills remain, can there be a second comeback Chance. Of course, there are skills in escaping. It doesn't mean that if you want to run at the slightest sign of trouble, it is not called escaping, but a bird of fright.
Stop loss is a love-hate word for retail investors. Sometimes this question is very profound, and sometimes it is very simple. The original purpose of stop loss is actually one, which is to protect your funds. However, if you stop loss more than ten times in a row, the more you stop, the more you lose. It loses the meaning of stop loss. Therefore, from the understanding of the market and trading, stop loss These several aspects must be added to be perfect enough.
1. Funding curve
Nothing can protect funds better than a capital curve chart. Stop loss can only protect you for one transaction, but it cannot protect your account funds, but a capital curve chart can protect all your funds. When making consecutive mistakes, you must look at the capital rights and interests. If the capital has not lost much, you can stop the loss or stop the loss. There is no hesitation, but if the capital drawdown exceeds 10%, you must stop. Come down and analyze and summarize the recent operations to see where there is a problem, and then reduce the position and continue the operation.
The capital curve chart is the lifeline of a trader. If you don't draw a capital curve chart, the transaction is meaningless, and you will be a loser after all. Learn to control the capital curve. After a large profit, when the capital curve rises steeply, reduce the position, wait for the curve to become smooth, and then increase the position. After a large loss, when the capital curve goes down steeply, reduce the position, look more and do less, and wait for the capital curve to rise before increasing the position. Retail investors must carefully analyze their own capital curve, and don't be lazy.
2. Stop loss protection of the entire trading system
The stop loss needs to protect not only a single transaction, but more importantly, protect the profitability of the entire trading system from being destroyed.
If it is mid-line trading, for example, a stop loss of 30 points can make you 10 times against 9 times, then you will definitely be able to make stable profits, so 30 points is suitable for you. If you make 3 points 9 times and stop loss 30 points 1 time, then 30 points is not appropriate. The same is stop loss, but the meaning and result are very different, which basically depends on your trading system. The amount of stop loss depends on what trading method you use, without the trading method, stop loss is out of the question. Therefore, the short-term, mid-term, and long-term stop losses are all different.
If you are doing short-term trading, you should look for a position where you buy and go up and sell and go down, that is, you need to use the long-short watershed as the basis for buying and selling. At such a price, you can basically achieve the minimum stop loss and achieve success at the minimum price. This reflects the meaning of stop loss. If it is a medium-to-long-term, you need to buy the right trend. The point of buying should be at the reversal position, and you don’t have to worry too much about the difference of a few short-term points, because the stop-loss tolerance of the mid-line is large enough to smooth out short-term clutter. As long as the general trend is right and the point is relatively appropriate, you can make good profits. Stop loss protects a single transaction, protects your funds, but more importantly, protects your trading system to be profitable, so when talking about how to stop loss, first analyze how you trade, and only after the analysis is clear can we talk about this issue.
3. Stop loss methods
The following introduces several stop loss methods, and mark the recommended index, replaced by the number of ★, the more the number of ★, the higher the recommended index.
(1) Fixed amount stop loss ★
When we are doing transactions, everyone should know in their hearts what is the maximum loss that they can bear, and what is the maximum loss that they can bear in a single transaction. In this case, we can choose to fix the capital stop loss, and set the stop loss point according to the maximum loss we are willing to bear. This can make us more relaxed when trading. After all, the set stop loss positions are all within the range of psychological tolerance. Of course, using this stop loss method may not conform to the logic of market operation, and may be too subjective. However, some people say, I don’t want to accept any losses, as long as I want to fight against the floating losses, then you are not suitable for investment, but suitable for deposits, and you will never touch investment again in the future.
(2) Fixed percentage stop loss ★★
For example, when executing a transaction, you use 10,000 yuan and exit when the funds have withdrawn by 10%. This is a fixed percentage stop loss. If this transaction is wrong by 10%, then the entry point is likely to be wrong, and even the trend may be wrong. In the words of Soros, "At least I am wrong temporarily. Since I am wrong, I should admit it in time Own mistake, temporarily withdraw from the battle." It is also possible to reverse just after it comes out, but after all, the possibility of the trend being wrong is also very high. If you carry it to death, there is a high probability that an order will be OVER, so you must decisively stop the loss and exit the market. This stop loss method is more objective than a fixed amount stop loss method, which is in line with certain market logic. For example, O'Neil has an 8% exit mechanism.
(3) Volatility Stop ★★
Now we have indicators to measure volatility in our trading software, such as ATR (Average True Range). It represents the degree of volatility within a certain period. Many traders will refer to such an indicator, such as an average daily fluctuation of 30 points within 20 days, then we can set the stop loss position according to this standard. When the market volatility intensifies, the stop loss should be wider, and when the market volatility narrows, the stop loss can also be reduced accordingly. But it must be more volatile than average, because there is noise from irrational traders in the market. We should try our best to avoid these noises and reduce invalid stop losses.
(4) Moving average stop loss ★★★
There are many traders who use the average line, some will use it as a reference basis for entry, some will use it as a filter condition, and of course some will use the moving average line as the basis for stop loss. The reason why the moving average can be used to stop losses is because the moving average represents the market cost price, and people are very sensitive to the cost psychology. Therefore, in the study of trading behavior, the cost line is a natural support and resistance level, so the price is right. The effective penetration of the moving average is sometimes accompanied by a violent unilateral market. If you fail to withdraw from the market in time before the violent unilateral market occurs, you may suffer heavy losses. However, when using the moving average, it is best to combine other stop loss methods, because there are more false breakthroughs accompanied by the moving average. Especially when encountering a volatile market, they tend to be slapped back and forth around the moving average.
(5) Support pressure stop loss ★★★★
There are many important pressure and stop loss positions in the market, which can be integer positions, areas with intensive trading volume, or important high and low points, etc. Once the price moves near these positions, many traders will make trading decisions at these positions. So you can choose obvious support and resistance positions and exit the market within these areas. It is worth mentioning here that support and stop loss often represent an area rather than a specific point, because there will be many false breakthroughs. Make a certain space up and down the specific point, in this way can also reduce the invalid stop loss. However, there are many support and resistance methods, so it is necessary to learn various support and pressure methods, and comprehensively adopt the reasonable principle and the nearest principle to scientifically set the stop loss price. Moreover, finding a good support and resistance level is also conducive to entering the market, reducing the cost of stop loss, expanding profits, and further improving the mentality.
(6) Time stop loss ★★★★★★
If you are using a momentum or breakthrough strategy, you can also choose a time stop loss method. Because the entry logic of momentum or breakthrough is the explosive force of the market, it is like a rocket that takes off and never returns to the launch site. If the market breaks through, but the price hesitates or turns around quickly. Then be careful! There is a good chance that this was a false breakout. At this time, you can stipulate yourself that if the market does not break out smoothly within a few K lines, you should withdraw in time, so as to limit the loss to a minimum.
(7) CN stop loss ★★★★★★
The stop loss in our CN strategy involves fixed stop loss, volatility stop loss and transaction essence stop loss.
Specifically, it is based on the highest or lowest point three minutes before the announcement of the big data plus 4.5 points as the stop loss price, and this 4.5 points needs to be handled reasonably according to the volatility at that time. If the ATR (average true volatility) is 8 points , we set 8 o'clock, if it is 3 o'clock we set 3 o'clock. Here, the highest point or lowest point three minutes before the announcement is used as the basis because this highest point or lowest point may be the entry point of the institution, and the ATR (Average True Range) cannot be fixed with its own entry price. points.
Figure 1-1 is a 1-minute K-line chart of gold. The picture shows the gold market when the US non-agricultural data is released on July 2, 2020.

Figure 1-1
As shown in Figure 1-1, on the eve of the release of non-agricultural data, gold rose (empty signal) and rose rapidly (empty signal), and the other two major signals were also empty. Short signal, after the release of non-agricultural data, gold fluctuated and fell.
There is no right or wrong in summing up
the results of stop loss, only valid or invalid. Reasonable and timely stop loss is the protection of more funds for oneself, which belongs to the strategy of surviving with broken arms. Therefore, if the market continues to go in the opposite direction after the stop loss occurs during the execution of the transaction, there is no need to regret it. As long as the stop loss is strictly planned, it is correct, otherwise it may be a single anti-explosion, and there will be no chance of making money. "If you keep the green hills, you are not afraid of no firewood", isn't it?

A bad mentality can be exercised, and it does not directly mean that you are not suitable for foreign exchange trading.

Any trader will be more or less troubled by trading mentality. The quality of mentality directly affects whether the trading system and trading techniques are strictly implemented. People who can control their emotions are often elegant. People who can adjust their mentality are often successful. Traders often say a word: "Seven points of mentality, three points of technology." It can be seen that technology is only at the tactical level, while mentality is at a strategic level. Cultivating a good trading mentality has become the goal that traders strive for. There are several ways to cultivate a good trading mentality:

​Cultivate good living habits

A good quality of life and adequate sleep can ensure that traders have plenty of energy and sharp response when trading. Drinking, gambling and other exciting activities, try not to participate or participate less, no one with a corrupt life can make a good deal. Good traders are often accompanied by loneliness and hardships. An unsocial attitude towards life and a seemingly arrogant personality are the characteristics of most successful traders.

Moderate control of greed and fear

Greed and fear are human nature. Complete control over greed and fear is neither necessary nor possible. Appropriate and justifiable greed is conducive to improving technology and income. Appropriate fear is conducive to cultivating risk awareness and stopping losses in time. There is no clear boundary between greed and aggressiveness, and neither is fear and self-protection. But unrealistic and unfounded excessive greed is not advisable, and inexplicable fear caused by ignorance is also not advisable.

Do not pay too much attention to account equity and handicap when trading

Some people involuntarily stare at the account equity when trading. As the equity fluctuates up and down, their emotions fluctuate and distracting thoughts abound, which not only seriously disturbs the trading mentality, but also seriously affects the analysis and judgment of the market. Some people are used to staring at the buying and selling orders when trading. Order speculation can be used to judge price fluctuations in an ultra-short period of time, but for a slightly longer intraday short-term, it is meaningless, because through changes in the market, It is impossible to predict the direction of short-term fluctuations, let alone judge the medium and long-term trends. Keeping a close eye on the market will have the same disadvantages as keeping an eye on the equity of the account.

Treat stop loss correctly

Stop loss is an integral part of the trading process, and even the best traders may often experience it. A normal loss is the cost that must be paid for the ultimate profit. Therefore, stop loss is a routine strategy in trading, and we must face it calmly. Stop loss is not error correction. Right and wrong are not measured by profit and loss, but by whether they are executed according to the rules. If you regard stop loss as error correction, you will enter the endless process of perfecting the trading system, with no results, and at the same time fall into the fear of market uncertainty. Therefore, as long as the stop loss is in line with your own trading system, it will always be right. The operation that caused the stop loss is not wrong. Traders should face it calmly and execute it calmly. Remember that the profit and loss of any one trade, or even the profit and loss of any day, can not determine the fate of a trader.

​

Participate in transactions with appropriate funds suitable for positions

If the capital position is too small, the profit and loss of the transaction will not matter, and random orders will be placed, and the stop loss may not be resolutely executed. If the capital position is too large, it is a transaction that cannot afford to lose. Profit and loss will inevitably have a strong impact on the psychology, so the mentality will be chaotic. Even if there are strict operating disciplines in advance, it will be useless and unable to be implemented in place, and eventually losses will become inevitable.

wait patiently for an opportunity

The market fluctuates every day, and there are a lot of opportunities, but not necessarily all opportunities belong to the trader himself. If you are afraid of losing opportunities, you may operate frequently, resulting in frequent losses, mental disorder, and a vicious circle. No trader can seize most of the opportunities. Only by patiently waiting for an understandable opportunity to place an order, the success rate will be high, and the market reward will be rewarded, and the mentality will be better.

Having a good trading mentality will increase the execution of trading techniques; having a good trading philosophy and trading techniques will help cultivate a good trading mentality. While cultivating a good trading mentality, traders should also work hard to learn good trading concepts and appropriate trading techniques.

So to sum up, there are ways to exercise if you have a bad mentality. Not everyone is born with a strong heart. Trading is a practice. Don't deny yourself completely if you have a bad attitude.

I see this question often, and I can't resist answering it. According to my summary, a successful trading system must have four major systems: trading philosophy, market analysis, fund management, and trading psychology. A successful trader must also improve himself from these four aspects. Although it is divided into four systems, it definitely does not mean that the trading system is divided into four parts. The trading system is an organic whole. The so-called four systems are just four angles to analyze it.

The trading concept is the foundation. If you trade according to the wrong concept, it is impossible to succeed anyway. For example, if you believe that you can make money by placing heavy orders frequently, then you will never make money; market analysis is a means, whether you are Technical analysis is still asking the crystal ball for fortune-telling. There must always be a basis for judging market conditions; fund management is the key and a necessary condition to ensure stable profits. Without a reasonable position and stop loss plan, your profit-loss ratio will be very bad; trading psychology It is a guarantee. Without a good attitude, you cannot make stable technical analysis and fund management, and you will do whatever you want.

The four major systems of the trading system are indispensable. If any one is not done well, the transaction cannot be successful. If the concept is wrong, trading is like a blind man riding a blind horse into the abyss in the middle of the night, and may be smashed to pieces at any time; It is sailing against the current, advancing an inch and retreating a foot; if you have a bad mentality, trading is like driving a small sailboat into a storm, killing yourself.

What kind of mentality is not suitable for trading? I have summed up the top ten leek mentality, listed as follows, for your reference:

(1) Blind obedience mentality. Traders have no backbone, they listen to the wind and it rains, and whatever other people say is what they say, floating like duckweed on the water.

(2) Complacent mentality. Traders are too determined, they can do whatever they want, it doesn’t matter what others say, they are as smelly and hard as a latrine.

(3) Autistic mentality. If you learn a little thing, you will block your vision, and from then on, everything will be inferior, and this skill is the only one in the world.

(4) Cowardly mentality. Holding positions for fear of losing money, short positions for fear of missing out, winning for fear of losing again, and losing for fear of losing face, and trembling all day long.

(5) Aggressive mentality. A full warehouse is for work, regardless of four or eight thirty-two, either a young model in the clubhouse, or end up working. ​

(6) Retaliation mentality. If you lose, you have to make money, and if you win, you are arrogant. In fact, you can't get revenge on anyone.

(7) Delusional state of mind. Carrying orders and waiting to pay back the capital, holding heavy positions and hoping to make profits, whimsical, and not knowing the heights of the sky and the depths of the earth.

(8) ​Escape mentality. If you win, you refuse to admit it is luck, but if you lose, you have to rely on everything. Anyway, I am Soros, and it is not my fault.

(9) Lucky mentality. Don't stop loss, what if it will reverse? Just a heavy position, there is no reason not to go up a lot? !

(10) Distorted mentality. Enough tormented by losses and liquidation, schizophrenia has many strange thoughts, and she speaks like a bitter woman.

This is like a person is sick, so he is not suitable to continue to live?

The shortcoming of most people is that they don’t like to formalize their own shortcomings, and always want to find excuses for their mistakes, so you can ask yourself whether "mentality" is your excuse!

First of all, let me talk about the reasons for the mentality: the main reason why many people suffer from the mentality is that they have insufficient confidence in their own trading system, they change the direction of the position list after listening to other people's casual remarks, resulting in losses, and some are really Individuals can't stand the beating of digital profits (we call this type of instinctive factors)

The way to increase confidence: Only review more exercises and summarize more. This is the simplest and most effective method, but it is also the most difficult, because many people can't persevere.

The reason for whether you can do a good deal is mainly whether you want to do a good job and whether you can work hard for it. If you say that you can’t do a good deal if you have a bad mentality, then other reasons will also affect your trading results. Because you're just making excuses. What do you think?

Trading mentality is very important. Many people attribute the root cause of losses to: bad mentality. Simulated trading is generally easy to succeed, but once you start real trading, the situation will be quite different. Losses follow one after another, seeing right but not doing it, doing it but not grasping it, making a mistake but making it, the stop loss is not stopped due to hesitation, fear when entering and exiting the market, always worrying about being wrong, etc. However, all of this is related to the trading mentality.

Maintaining a good trading mentality is the goal that every investor strives for, and it should be done from the following aspects:

1. Good money management is the foundation

2. Correct understanding of loss is the key

3. Focus on the stop loss, regardless of the profit is the measure.

After achieving the first two points, your trading mentality will still be affected by the desire to make profits and it will be difficult to calm down. The desire to make a profit is always surging in our hearts, and the purpose of our trading is also to pursue profits. This kind of desire will scratch in our hearts like ants, making us worry about gains and losses. Our mentality will fluctuate with the price fluctuations. If you buy the total hope, the price will soar all the way, and if you sell the total hope, the price will plummet all the way. This eager desire to make a profit itself will make you uneasy.

In fact, the only thing we can control in trading is the stop loss, but the profit will not be at our mercy, because the market is unpredictable. We can only do what we can do, and try to do what we can do well. If we do what we can do well, what you pursue will come naturally. Focusing on the stop loss is doing what we can do, because we can control the stop loss; if you focus on the profit or the market, you are doing something that you cannot control and grasp. Pursuing something that you cannot grasp will definitely make your mentality Can not grasp. After entering the market, we only need to keep an eye on the stop loss. As long as the price is below the stop loss point, we will hold it all the time. We don’t need to pay too much attention to specific fluctuations. Too much attention to fluctuations will make your mentality fluctuate constantly. Stop loss is relatively static and controllable. The controllable nature of stop loss can keep us in a good state of mind.

When you just focus on the stop loss and don't consider the profit, what other factors can make you feel bad? Focusing on the stop loss and not considering the profit is not the pursuit of profit, but it is the best way to pursue profit, because the profit comes naturally, and it is the result of patiently holding positions and waiting after doing the right thing, rather than deliberate pursuit and frequent trading. This is where the profits come from. If the risk is well managed, the profit will come naturally! ! To maintain a good attitude, you must fully cooperate with the above three aspects. First, you must correctly understand the loss, accept the loss calmly, then control the loss by fund management, and finally implement it in specific transactions by focusing on the stop loss and not considering the profit.

The seven emotions and six desires are the nature of a person!

It is difficult to control, and even more difficult to change, why not change the direction to avoid it! Just like, knowing that the data market fluctuates greatly, you still go out of your way to meet it. Isn't this easy to magnify your bad mentality! Try to sell after the data and after the big market~

A bad mentality is firstly closely related to the level of technology and cognition, and secondly related to many personality defects of human nature.

If you have a bad mentality, if you want to do a good job in trading, you must continue to practice from the above two aspects.

First, the technical level and cognitive level are not obtained out of thin air. You need to learn and summarize continuously to improve your trading level in actual combat.

The more classic technical level books are the materials that must be read for cultivating a good mentality. The key technical books are listed as follows:

1. "Memoirs of a Stock Operator" by Jesse Livermore

It is a must-read book for investing, and it is strongly recommended for everyone who invests to read it. This book tells the story of Livermore, a master operator on Wall Street, with three ups and downs, and the content is ups and downs. If you trade, you will feel the same way after reading this book. In addition, the book also talks about some trading skills. If you plan to do trading, this is the first book you should read.

2. "Japanese Candle Chart" translated by Ding Shengyuan

"Japanese Candlestick Chart" introduces this ancient oriental skill to American traders for the first time in history in detailed, fluent, incisive and easy-to-understand language. Compared with the existing technical analysis system, "candle chart" not only has a high degree of "added value", but also introduces a new perspective.

​

At present, the basis of the most popular K-line chart on the market is the Japanese candlestick chart. This book gives a detailed explanation of K and prompts specific buying and selling signals through the combination of K-lines. It is an introductory book that investors must read.

3. Dow Theory

Dow Theory allows investors to have an in-depth understanding of the market by making judgments on the three trends of market operation, and guides investors to choose the appropriate method for investment through morphology. As the oldest investment theory, it is still highly respected after a hundred years. It can be seen that the essence of it is worthy of careful study by traders.

4. "Wave Theory"

Elliott Wave Theory is a theory of technical analysis. It is believed that the market trend repeats a pattern continuously, and each cycle consists of 5 rising waves and 3 falling waves. The Elliott Wave Theory divides trends of different scales into nine categories. The longest super-large cycle wave is a super-large cycle spanning 200 years, while sub-microwaves only cover trends within a few hours. But regardless of the size of the trend, the fact that each cycle consists of 8 waves is constant. The premise of this theory is: when the stock price goes with the main trend, it fluctuates in the order of five waves, and when it goes against the main trend, it fluctuates in the order of three waves.

Wave theory is one of the three major theories of technical analysis, which can help investors have a clear understanding of the market structure, so as to seize the main rising wave of the market and obtain excess returns.

5. "45 Years of Gann Wall Street"

"Gann Wall Street 45 Years" summarizes the investment strategy of this financial prophet and his winning ways in the market for decades. Gann's volatility law is widely known by technical analysts. His volatility law places great emphasis on the relationship between multiples and fractions. When time and space resonate, it is often the time when the market undergoes major changes. How many trading geniuses in history have fallen like stars, Gann made a conclusion from their failures, and carefully avoided the weakness of human nature, maybe this is the reason why he can become one of the few trading geniuses who died well.

There are many books written by Gann, but this book written in his later years summarizes the best part of his trading career. Many people say that Gann was poor in his later years, but the truth is that although he was not wealthy before his death, he lived very richly. If you want to understand Gann, this is a must read.

6. "Wyckoff's Trading Method" by Meng Hongtao

This book takes the relationship between volume and price as the core, and uses the trend of the main funds in the market as an object of influence. I believe it describes the movement of the market. It analyzes the behavior of the "banker" and allows investors to learn: follow the dealer. If you don't understand some behaviors of the market, this book can help you understand the market and deal with the behavior of the dealers in the market, so as to help you make profits.

7. "Technical Analysis of Stock Market Trends"

It is generally considered to use technical means to analyze the trend of stock prices and issuance. Written by Robert D. Edward, he considers it the masterpiece of technical analysis of stock market trends. Investors who want to have a detailed and profound understanding of technical analysis of stock market trends must have the book "Technical Analysis of Stock Market Trends" edited by Robert D. Edward. By 2009, the book already had 10 editions, which shows its authority.

As a classic among classics and an authoritative work of stock market technical analysis, "Technical Analysis of Stock Market Trend" is still firmly in an unsurpassed position. He is the bible in the heart of every technical analyst and has an irreplaceable position.

8. "Principles of Professional Investment"

Victor's method of market forecasting is to combine technical analysis, statistical methods and economic fundamentals for forecasting. It seems very simple, many people also use these three methods, but few people can accurately predict. "It's not how much you know, it's the truth and relevance of what you know." "The key lies in how a statement and a little knowledge form a series of reasoning and conclusions." This is the "Principle of Focused Thinking". Everyone looks at the same technical graphics, the same statistics, and faces the same economic fundamentals. Why can Victor see the direction, but you can't? The reasoning process is different, and the conclusion is naturally different. The difference lies in the reasoning process.

Through this book, you will understand the triple screen trading system, and determine the appropriate buying and selling points in the market through the combination of indicators, so that you will be more comfortable in the operation.

9. "Short-term Trading Secrets"

"Short-term Trading Secrets" is a book written by Larry Williams, a famous trader who won the full-time champion of the Robbins World Cup (Robbins World Cup) futures trading championship. In less than 12 months, Operate account funds from $10,000 to $1.1 million. There are five main ways he looks for short-term fluctuations: price patterns; indicators based on price patterns; trends or momentum in prices; inter-market relationships; and what most people think is often wrong.

Short-term traders have only one purpose: to catch the current trend of the market. Use the breakthrough of the swing point to take advantage of the trend, the three-line high or low point system, rely on the Will spread indicator to trade, and make the correlation of the two markets into one indicator.

Second, the cultivation of many personality defects of human nature is mainly to overcome the three poisons of "greed, anger, and ignorance" in human nature. To overcome them in trading, especially in actual combat, requires an indomitable spirit. At the same time, it is not recommended to do too long a simulation of mentality training Even if it is a real investment with a small amount of funds, the training of mentality is much better than the training of the simulated investment.

Zero mentality - in the same way, we dig deeper from greed and fear, and we can see that investors will also swing between optimism and pessimism. Favorable events usually make people expect more favorable Events and more favorable outcomes... This mentality is familiar, optimism. Optimism often becomes a breeding ground for greed. If you think about it, if people's expectations are negative, do you think they're going to get very greedy and be driven to invest a lot of money? If anyone thinks this way, then he must have a brain problem. It's clear that optimism and pessimism drive other emotions and influence people's behavior.

Sometimes we put too much emphasis on the role of mentality. If our operation method is wrong, even the best mentality will lose a lot. Mentality is only worth considering if you have a trading system (method) with positive returns. The quality of your mentality depends entirely on your understanding of trading. The more knowledge you know, the calmer your mentality will be. The more market conditions you have seen, the calmer you will be when encountering market conditions.

Therefore, just cultivating mentality is of little significance. Everything must be based on technology, whether it is fund management or mentality.

In the early days of trading, I thought mentality was a very important factor in trading, but now I think it is not so important, but there is a link, mentality is very important.

When we are trading, we often encounter a situation where we hold an order and have a floating win, and feel that we can take it again. As a result, the profit is withdrawn, and we finally exit the market with a loss. We will think that it is a bad mentality. Well, because you are "greedy". Or in another situation, there is still a floating win, and because of the last situation as a lesson, this time "not greedy", I chose to close the position, only to find that the subsequent market has never looked back. If you hold it, you can get as much profit as you want. If you can't hold the list, you still have a bad attitude.

The above two situations are actually not a matter of mentality at all, but misleading us under the cloak of mentality. The reason for the above reasons is that there are no trading rules and no trading system at all. It is impossible to make profits in this market by looking at the feeling when entering the market, and relying on intuition when exiting the market. Therefore, the most important thing in trading is to establish a trading system.

At the beginning of the article, the mentality I mentioned is very important, that is, after the trading system is established, because even if the trading system is established, every system is not perfect, and there must be unfavorable periods and retracement periods. Sometimes, we will doubt and distrust our own trading system, and always feel that there is still room for optimization. At this time, it is easy to get lost and unable to get out. It is still a matter of cognition of trading. With a good system, you also need to have good internal skills to control. Both are indispensable, so you should go through the necessary experience.

Are you satisfied with this answer?

The unity of knowledge and action, the unity of man and nature, forgets the self.

Ideas need to be implemented in trading principles, ideas, and operating rules. Methods and specific rules need to be realized, and form a harmonious whole. Most people can't do it. This is not something that can be learned, but it is practiced for many years. Gradually, this knowledge turns into thinking, and then into operational behavior. At this time, knowledge and action are integrated.

The purpose of the unity of knowledge and action is the unity of nature and man. What is harmony between man and nature? Add clothes when it’s cold, cool down when it’s hot, eat when you’re hungry, and sleep when you’re sleepy. The market changes and your operations change accordingly, instead of thinking that you’re capable enough to withstand cold and heat and endure hunger. Sleepy, compete with the market for a loss and scold the market.
Going in harmony with the sky, the unity of subjectivity and objectivity is the unity of man and nature. Of course, you must also understand that your abilities are limited, and it is impossible to be one with the objective all the time.

90% of the mentality will not be very good, after all, money is involved, as long as anything is related to money, it is easy to lose the mentality

It’s okay to have a bad mentality at the beginning, and it’s okay to have a bad mentality when no one guides you. If someone guides you and you still can’t stabilize your mentality after a period of time, you can consider changing your career

taboo

The desire to win, not only profit, continue to chase, can you chase the market?

Unconvinced, don't stop losing, continue to head against the wind, do you think you are handsome?

Afraid of losing, nervous when seeing floating losses

If you have a bad attitude, it means you don’t understand the market

Give you a math problem, if you do it wrong, you will be fined, if you do it right, you will be rewarded,

The question is 1+1=?

What you have to face now is this question. What is your state of mind?

And if there is a coin now, I toss it in the air, guess which side will face up after it hits the ground?

The same two questions, which one would you choose to do? If you don't know math, you must choose coins, right? Now you want to say that anyone can do something as simple as 1+1, even children can do it. Of course, you have to choose math problems. You are right, children can do it, but why do children? Is it natural? He must have received the correct cognition when he was young. Looking back on your past experience, have you ever believed in something that you have always believed in, and one day you suddenly realized that it was wrong, and the initial cognition was wrong. At that time, I must have been shocked. This is the power of cognition.

Back to the topic, trading can also be 1+1, but you didn’t realize it, not only you, more than 99% of traders in China didn’t realize it, and they kept doing coin flips

It is difficult for human beings to accept new things. They are often influenced by some wrong concepts. These wrong concepts are preconceived and dominate for a long time. It becomes difficult to change, but we still want to try. It is equivalent to setting off a revolution in the trading world and breaking everything that exists, but we still want to give it a try, not to leave a name in history, but also to seek a short-term glory!

Mulai Trading Academy-Master the essence of the market, trading is so simple

The reasons why many foreign exchange traders lose money all attribute their losses to their mentality without exception.

In fact, most of the reasons for poor mentality are caused by poor technical analysis.

Some people think that my order of 3000 US dollars is too heavy, and the next 0.1 lot is called fund management. That is because you need a stop loss of 500 points, but I only need a stop loss of 50 points

And the reason is that your technical analysis failed to get you to the 50 pip stop loss.

I was long the euro, but you thought the euro should be shorted. You made money by doing more, and then you lost money, and then you said it was because of your poor mentality.

It is true that mentality accounts for 80 points and technology accounts for 20 points, but the premise is that your technology must have at least 18 points.

Mentality and technology are not added, but multiplied

Originally, your mentality has 80 points, but with 5 points in technical analysis, you have 400 points. And my mentality is only 50 points, my technique is 18 points, and my trading level is 900 points. Your mentality is good, but my trading level is twice as high as yours.

Therefore, first hone your skills and cultivate a good sense of the game, and then emphasize the mentality.

There are many reasons for a bad mentality, such as lack of basic knowledge, lack of experience, lack of self-confidence, lack of economic foundation, lack of understanding of the market, lack of exercise, lack of rigorous trading attitude, etc.

I don’t know what stage of the investment journey the subject is in now. When stocks are well established, the mentality of dealing with people is naturally better than ordinary people. On the contrary, if the mentality of daily life is adjusted, it will also affect the investment attitude of the securities market, so the mentality improves. It is not limited to securities investment.

Confidence is based on review, review strengthens cognition, cognition strengthens confidence, confidence strengthens execution, execution builds profit!

A point does not reflect the entire surface

A bad mentality, in terms of trading, must do more harm than good